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Intuit

Enter and apply a credit memo or delayed credit

Learn when and how to give a credit memo or delayed credit to a customer.

Unsure whether to enter a Credit Memo or Delayed Credit? Here, we outline what makes these two different, and how you can apply them to your customer transactions.

If you need to record a customer refund instead, get more help here.

Credit memo vs delayed credit

You can use a credit memo or delayed charge to give your customer a credit.

For example, if your customer returns a product, and wants a credit they can use for their next invoice. Or if you want to reward your customer a store credit.

So what makes these two different?

  • A Credit Memo can only be added when recording a payment from a customer.
    A Delayed Credit can only be added on an invoice, as a line item.
  • A Credit Memo decreases your customer’s existing balance.
    A Delayed Credit only affects your customer’s balance once applied on an invoice.

Note: When a customer overpays, the Payment transaction automatically creates an additional credit in the customer’s balance. While this is not a credit memo, you can apply the overpayment as a credit to their next transaction. Or, you can give them a refund for an accidental overpayment.

Enter an apply a credit memo

Step 1: Enter the credit memo

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Customers, choose Credit Memo.
  3. Fill out all required fields (including the customer name, date, products/service items, quantities and amounts).
  4. Select Save and close.

Step 2: Apply the credit memo

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Customers, choose Receive Payment.
  3. Complete these fields as follows:
  4. Under Credits, select the Credit Memo.
  5. Verify that the total to pay (if any) is correct after applying the Credit Memo.
  6. Select Save and close.

Enter and apply a delayed credit

Step 1: Enter the delayed credit

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Customers, choose Delayed Credit.
  3. Complete all the necessary fields (including the customer name, date, products/service items, quantities and amounts).
  4. Select Save and close.

Step 2: Apply the delayed credit

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Customers, choose Invoice.
  3. Choose the appropriate customer and complete the necessary fields.
  4. Available delayed credits are listed on the right pane of your invoice (if you don't see this, select the arrow next to the invoice balance).
  5. To add a delayed credit to the invoice, select Add.
  6. Select Save and close.

Note: Keep in mind that adding a delayed credit to an existing invoice with a prior period date will change prior period balances.