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# System prepended metadata

title: 'QuickBooks 2026 Tips: How to Unapply or Reapply a Credit Memo'
tags: [Unapply or Reapply a Credit Memo]

---

<p><span style="font-weight: 400;">Managing credits, invoices, and payments in QuickBooks can be smooth&mdash;until an entry gets applied incorrectly. Many users face a common challenge: </span><strong>how to unapply a credit memo in QuickBooks</strong><span style="font-weight: 400;"> when it has been accidentally linked to the wrong invoice or customer balance.</span></p>
<p><span style="font-weight: 400;">Learn how to unapply a credit memo in QuickBooks with simple steps. Fix payment errors fast. For expert assistance, call +1-866-409-5111.</span></p>
<p><span style="font-weight: 400;">The good news? Whether you are using QuickBooks Desktop or QuickBooks Online, the process is simple once you know the right steps. In this guide, we&rsquo;ll walk you through the process, explain why it happens, and show you how to avoid similar issues in the future.</span></p>
<p><span style="font-weight: 400;">If you need personalized guidance or bookkeeping help, you can reach a trained accounting professional at </span><strong>+1-866-409-5111</strong><span style="font-weight: 400;">.</span></p>
<h2><span style="font-weight: 400;">What Is a Credit Memo in QuickBooks?</span></h2>
<p><span style="font-weight: 400;">A credit memo is an accounting tool used to reduce the amount owed by a customer. It is typically issued when:</span></p>
<ul>
<li style="font-weight: 400;"><span style="font-weight: 400;">A product is returned</span><span style="font-weight: 400;"><br /><br /></span></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">An invoice was overcharged</span><span style="font-weight: 400;"><br /><br /></span></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">A discount or adjustment is needed</span><span style="font-weight: 400;"><br /><br /></span></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">A billing error occurred</span><span style="font-weight: 400;"><br /><br /></span></li>
</ul>
<p><span style="font-weight: 400;">However, when a credit memo is applied to the wrong invoice, you must </span><strong>unapply</strong><span style="font-weight: 400;"> it to fix the customer&rsquo;s balance.</span></p>
<h2><span style="font-weight: 400;">How to Unapply a Credit Memo in QuickBooks Online</span></h2>
<p><span style="font-weight: 400;">Follow these steps:</span></p>
<h3><strong>Step 1: Open the Customer Profile</strong></h3>
<ol>
<li style="font-weight: 400;"><span style="font-weight: 400;">Go to </span><strong>Sales</strong><strong><br /><br /></strong></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">Click </span><strong>Customers</strong><strong><br /><br /></strong></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">Choose the customer whose memo you want to update</span><span style="font-weight: 400;"><br /><br /></span></li>
</ol>
<h3><strong>Step 2: Find the Credit Memo</strong></h3>
<ul>
<li style="font-weight: 400;"><span style="font-weight: 400;">Click on the </span><strong>Transactions</strong><span style="font-weight: 400;"> tab</span><span style="font-weight: 400;"><br /><br /></span></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">Locate the </span><strong>Credit Memo</strong><span style="font-weight: 400;"> that was applied incorrectly</span><span style="font-weight: 400;"><br /><br /></span></li>
</ul>
<h3><strong>Step 3: Unlink the Credit from the Invoice</strong></h3>
<ol>
<li style="font-weight: 400;"><span style="font-weight: 400;">Open the </span><strong>Invoice</strong><span style="font-weight: 400;"> the memo is applied to</span><span style="font-weight: 400;"><br /><br /></span></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">At the top, click </span><strong>Payment link / Credits applied</strong><strong><br /><br /></strong></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">Remove or uncheck the </span><strong>Credit Memo</strong><strong><br /><br /></strong></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">Save and close</span><span style="font-weight: 400;"><br /><br /></span></li>
</ol>
<p><span style="font-weight: 400;">Once you do this, the credit memo is now available to be applied correctly.</span></p>
<h2><span style="font-weight: 400;">How to Unapply a Credit Memo in QuickBooks Desktop</span></h2>
<p><span style="font-weight: 400;">If you&rsquo;re using QuickBooks Desktop, follow these steps:</span></p>
<h3><strong>Step 1: Access the Payment</strong></h3>
<ol>
<li style="font-weight: 400;"><span style="font-weight: 400;">Go to </span><strong>Customers</strong><strong><br /><br /></strong></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">Select </span><strong>Receive Payments</strong><strong><br /><br /></strong></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">Locate the customer and open the payment associated with the credit memo</span><span style="font-weight: 400;"><br /><br /></span></li>
</ol>
<h3><strong>Step 2: Remove the Credit Application</strong></h3>
<ul>
<li style="font-weight: 400;"><span style="font-weight: 400;">In the payment window, uncheck the box next to the </span><strong>Credit Memo</strong><strong><br /><br /></strong></li>
</ul>
<h3><strong>Step 3: Save the Changes</strong></h3>
<ul>
<li style="font-weight: 400;"><span style="font-weight: 400;">Click </span><strong>Save &amp; Close</strong><strong><br /><br /></strong></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">The credit memo is now unapplied and available to use on the correct invoice</span><span style="font-weight: 400;"><br /><br /></span></li>
</ul>
<h3><span style="font-weight: 400;">Why You Might Need to Unapply a Credit Memo</span></h3>
<p><span style="font-weight: 400;">Here are the most common reasons:</span></p>
<ul>
<li style="font-weight: 400;"><span style="font-weight: 400;">Credit was applied to the </span><strong>wrong invoice</strong><strong><br /><br /></strong></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">Customer returned only part of an order</span><span style="font-weight: 400;"><br /><br /></span></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">You need to reissue the credit</span><span style="font-weight: 400;"><br /><br /></span></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">The customer account balance is incorrect</span><span style="font-weight: 400;"><br /><br /></span></li>
<li style="font-weight: 400;"><span style="font-weight: 400;">A billing error needs correction</span><span style="font-weight: 400;"><br /><br /></span></li>
</ul>
<p><span style="font-weight: 400;">If you need help correcting customer balances or reconciling transactions, experts are available at </span><strong>+1-866-409-5111</strong><span style="font-weight: 400;">.</span><strong><em><br /><br /></em></strong></p>
<h3><span style="font-weight: 400;">Pro Tips to Avoid Credit Memo Mistakes</span></h3>
<p><span style="font-weight: 400;">To maintain clean financial records, follow these best practices:</span></p>
<h3><strong>✔ Always verify invoice numbers before applying credits</strong></h3>
<h3><strong>✔ Send statements to customers regularly</strong></h3>
<h3><strong>✔ Use QuickBooks&rsquo; audit log to review previous adjustments</strong></h3>
<h3><strong>✔ Reconcile customer balances monthly</strong></h3>
<h3><strong>✔ Keep credit memos clearly labeled</strong></h3>
<p><span style="font-weight: 400;">Doing this not only prevents errors but also keeps your bookkeeping accurate and tax-ready.</span></p>
<h3><span style="font-weight: 400;">Final Thoughts</span></h3>
<p><span style="font-weight: 400;">Being able to </span><strong>unapply a credit memo in QuickBooks</strong><span style="font-weight: 400;"> is a valuable skill for any business owner or accountant. Whether you're correcting a simple mistake or reorganizing customer balances, the steps are straightforward once you know where to look.</span></p>
<p><span style="font-weight: 400;">If you get stuck or prefer expert help with credits, invoices, or account cleanup, you can speak with a bookkeeping specialist at </span><strong>+1-866-409-5111</strong><span style="font-weight: 400;"> for assistance.</span></p>
<h3><span style="font-weight: 400;">FAQs</span></h3>
<h3><strong>1. Can I delete a credit memo instead of unapplying it?</strong></h3>
<p><span style="font-weight: 400;">Yes, but only if it&rsquo;s not needed. If the credit is still valid, unapply it instead of deleting it.</span></p>
<h3><strong>2. Will unapplying a credit memo affect my reports?</strong></h3>
<p><span style="font-weight: 400;">Yes. Any change to customer balances may impact AR, sales, or revenue reports.</span></p>
<h3><strong>3. Can I reapply a credit memo after unapplying it?</strong></h3>
<p><span style="font-weight: 400;">Absolutely. Once removed, you can apply it to any correct invoice.</span></p>
<h3><strong>4. Why can&rsquo;t I unapply the memo in QuickBooks Online?</strong></h3>
<p><span style="font-weight: 400;">This can happen if the invoice is partially paid or locked by closing date. Remove restrictions first.</span></p>
<h3><strong>5. Do unapplied credits affect customer statements?</strong></h3>
<p><span style="font-weight: 400;">Yes, they will appear as a separate credit balance on the customer&rsquo;s account.</span></p>
<p><br /><br /><br /></p>