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In this tutorial, Gabriella from My Solutions demonstrates how to apply credit memos using the iSolutions app within Microsoft Dynamics 365 Business Central. She opens Business Central, navigates to the customer with the relevant credit memo, and selects the actions menu. Gabriella identifies the open invoices and the credit memo totaling $578. She clicks on the three-dot menu, selects the credit memo, and chooses an invoice for application (in this case, one for $380). After clicking "apply credits" and confirming the action, she successfully posts the application, showing that the remaining balance of the credit memo is nearly $3.