Credit memos can be used in QuickBooks to provide a transparent view of the credit issued to a customer. A credit memo is a QuickBooks record that aids in the tracking of payment reductions and client payments. For things that were purchased by a customer and are being returned, a credit memo is used in QuickBooks. It’s used to keep track of customer payments as well as any payment decreases due to unanticipated events. We will discuss How to Create a Credit Memo in Quickbooks and then proceed with the steps to create it.