A Credit Memo is basically a "negative invoice". A Credit Memo is used to provide a document to your customer to note the fact that you have reduced the amount the customer owes.

To create a Credit Memo in Smart Contractor, you use the Create Invoices form. Creating a Credit Memo is the same as creating an Invoice, except that the line items are be based on negative purchase amounts.

You enter negative purchase amounts the Enter Purchases form, the same as other purchases, except with a negative amount.

To create a Credit Memo, follow these steps:

1. Enter negative purchase(s) in the the Enter Purchases form. You do this the same as other purchases, except with a negative amount.
2. Go to the Create Invoices form.
3. Select the negative purchase items that you entered in step 1.
4. Check the Credit check box at the top of the Create Invoices form.
5. Click OK to save, or View to print.