I created a credit in 2018 and found out this is no longer needed. I cannot delete or void this credit. What should I do? Is there a way to enter a "vendor credit" on the AP side and apply to this credit?
Hi there, APComposite.
Thank you for posting here in the Community!
We are not able to enter a vendor credit on Accounts Payable that can be applied to a credit memo from a closed period.
I suggest clearing the old transactions under your Accounts Payable and create a journal entry to move money from one account to another.
Here's how to create a clearing account:
1. On the left panel, select Accounting.
2. Select Chart of Accounts.
3. Click the New tab button.
4. Under Account type, choose Bank.
5. You can select any detail type you want for your clearing account.
6. Under Name, type any name for the clearing account.
7. Make sure you don't put any amount under balance box before clicking Save and Close.
After following the steps above, create a journal entry and apply the clearing account.
Please open this article on how to create a journal: Create a journal entry.
I also suggest consulting an accountant for the accounts to debit/credit in the journal entry.
I'm only a post away if you have other concerns. Take care and enjoy your day.
I created a credit memo to offset a couple of invoices in 2017. I received payment today, how do I revert the credit memo to apply the payment without affecting the closed period of 2017?
Hi there, @joeliz90731.
I'm here to help provide additional clarification about applying credit memo as payment of the invoice/s.
Applying the credit memo won't affect the reconciliation of your closed books as well as your Profit and Loss report. However, this will affect on your Balance Sheet report since credit memo will post to your accounts receivable.
If you wish to apply the credit memo, it'll affect your Balance Sheet report.
In case you need further assistance about credit memo, you can check this article: Enter and apply a credit memo or delayed credit.
Let me know if you have any other questions about credit memo. I'd be glad to help you however I can.
I already applied the Credit Memo to the open invoices in 2017 to write them off. What is the correct transaction to process the new payment, so that it doesn't affect the Balance Sheet?
Hello there, @joeliz90731.
Allow me to step in and provide additional information about applying the credit memo as payment.
Since the credit memo offset the item you've selected in the invoices, there will be no income generated. This is why it doesn't affect your Profit and Loss report.
But if you remove the credit memo, it'll remove the negative entry on your income from Profit and Loss. Then applying the payment received from the bank will also increase your bank.
To process the new payment, you'll need to delete the credit memo to increase your Profit and Loss from 2017 depending on the accounts affected. Doing this will not affect the Balance Sheet since it will still be covered up by the payment.
In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBO Self-help.
You can always get back to me if you have any other questions. It'll be my pleasure to help you.