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Experienced Member

How to create a credit memo for a customer who is using a donated gift certificate?

We donated a gift certificate to a local fundraiser.

1-How do I create a credit/credit memo for this donated certificate in QuickBooks for the customer who won the certificate to apply it at a later date?

2-How do I record this donated certificate when it is used towards their Invoices as payment?

Thank you ahead of time for any help you can give me!

 

1 Comment
Moderator

Re: How to create a credit memo for a customer who is using a donated gift certificate?

Good day, seasidefuel.

 

To track your donated gift certificate, you'll want to create an expense account first. I'm here to help accomplish this.

 

The expense account will be used on the item to track your amounts for gift certificates. The following steps are as follows:

  1. Go to List and choose Chart of Accounts.
  2. Click on the Account drop down and select New.
  3. Choose Expense and click on Continue.
  4. Enter the name of the account.
  5. Click on Save & Close.

Then, create an item or service for the gift certificate and make sure to select the expense you just set up as its income account. 

 

Let's now make a credit memo and retain it as an available credit. Here are the steps:

  1. From the Customers menu, select Create Credit Memos/Refunds.
  2. Choose a customer.
  3. Enter the gift certificate item and select Save & Close.
  4. On the Available Credit window, choose one of the following Retain as an available credit.
  5. Click on OK.

QuickBooks enters a negative amount in your A/R register for the credit memo. You can use this credit as a payment towards an invoice. Just click on the Apply Credit button and link the credit from there. 

 

I've attached some screenshots below, so you'll know what I'm referring to.1.1.PNG

 

1.2.PNG

 

As a reference, I'm linking this article that will provide further information: Record a credit memo or refund in QuickBooks Desktop.

 

That should do it. Let me know if you have any questions. I'll be here to help.