What is a common use for the "Credit Memo" feature in QuickBooks?

The “Credit Memo” feature in QuickBooks is commonly used to adjust billing discrepancies. This feature allows businesses to issue a credit to a customer’s account when there has been an overcharge, returned goods, or service issues that necessitate a reduction in the amount owed. By using a credit memo, businesses can effectively track and manage these adjustments without affecting their overall revenue directly and ensure that the customer accounts reflect accurate balances.

When a credit memo is issued, it essentially communicates to the customer that their previous invoice amount has been reduced, which aids in maintaining accurate financial records and customer satisfaction. This is particularly useful in maintaining positive customer relationships, as it allows for transparent and fair handling of any billing issues.

The other functions described in the choices do not align with the primary purpose of a credit memo. Creating new customer invoices refers to billing procedures, recording cash sales deals with immediate revenue collection, and managing vendor bills are related to accounts payable processes—none of which directly correlates with the need to correct or adjust customer billing adjustments like a credit memo does.