Since the customer is not returning items, you will not be able to apply the credit memo to the invoice in the credit memo entry screen. Follow the steps below.

Section 1: To enter the Credit Memo:

1. Select Tasks, Credit Memos.
2. Select the Customer ID that belongs to the customer receiving the credit.
3. Select the Apply to Sales: 0.00 tab if necessary.
4. Enter reason for credit in the Description field on the first line (not required).
5. Enter the amount of the credit in the Amount field on the first line.
6. Enter a reference in the Credit No. field.
7. Change the date of the credit memo if necessary.
8. Click Save.

Section 2: To Apply the Credit Memo to the invoice:

1. Select Tasks, Receive Money.
2. Select the Customer ID that received the credit.
3. On the Apply to Invoices tab, place a check mark in the Pay field next to the credit memo created and the invoice you wish to apply the credit memo against.
4. If the balance of the invoice is higher than the amount of the credit memo, change the amount paid next to the invoice to equal the amount of the credit. The Receipt amount should be 0.00.  
5. Enter the rest of the required information (Reference, Date, etc.) and click Save.

NOTE:  The receipt should only be 0.00 if you are not receiving more money from your customer.

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