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Credit Memo for Goods Purchased from Customer

We purchased some used equipment (which we will resell after refurb) from a customer. They want a credit memo issued instead of a check.

How do I receive the equipment? and How do I create a credit memo for the equipment?

 

Thank you

2 Comments
Established Community Backer ***

Re: Credit Memo for Goods Purchased from Customer

In QB the vendor and customer areas are completely separate with no 'transfer' system. So

  1. you will need to setup a 'vendor name' that is slightly different from the customer name. Then create a bill to buy the goods from that vendor.
  2. Create a 'bank account' for offset/clearing - this is a manual account with no feed.
  3. "pay bills' and issue a (dummy) check from the 'clearing bank' to close the vendor bill.
  4. Create an 'other charge' type item for 'offsets' - which links to the clearing bank account.
  5. Create a customer credit , using the 'offset item' and write a full description.  Send that to the customer.
  6. Later, apply the customer credit to a customer invoice - in lieu of cash payment. 
Established Community Backer ***

Re: Credit Memo for Goods Purchased from Customer


@MikeinBC wrote:

In QB the vendor and customer areas are completely separate with no 'transfer' system. So

  1. you will need to setup a 'vendor name' that is slightly different from the customer name. Then create a bill to buy the goods from that vendor.
  2. Create a 'bank account' for offset/clearing - this is a manual account with no feed.
  3. "pay bills' and issue a (dummy) check from the 'clearing bank' to close the vendor bill.
  4. Create an 'other charge' type item for 'offsets' - which links to the clearing bank account.
  5. Create a customer credit , using the 'offset item' and write a full description.  Send that to the customer.
  6. Later, apply the customer credit to a customer invoice - in lieu of cash payment. 

 

I don't see any need to set up the customer as a vendor, and all these steps.

Simply create a Credit Memo for the customer. to be used against future invoices.

If they track inventory, then use an Item for the inventory. Otherwise set up an item where the income account is linked to the account where purchases of equipment for resale normally go