diff --git a/server/accounting/qbo/qbo-payables.js b/server/accounting/qbo/qbo-payables.js
index 2876fd9a3..85c989b21 100644
--- a/server/accounting/qbo/qbo-payables.js
+++ b/server/accounting/qbo/qbo-payables.js
@@ -274,7 +274,7 @@ async function InsertBill(oauthClient, qbo_realmId, req, bill, vendor, bodyshop)
     VendorRef: {
       value: vendor.Id
     },
-    ...(vendor.TermRef && {
+    ...(vendor.TermRef && !bill.is_credit_memo && {
       SalesTermRef: {
         value: vendor.TermRef.value
       }