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Is there a way to turn this credit into a credit memo?

 If a customer overpays their account and we don't put the full payment amount in we can not reconcile the bank deposit. If we put the full payment in we can only give the customer a credit and not a credit memo. but it is non-posting and difficult to work with.

Best answer 12-10-2018 09:07 PM

Accepted Solutions
Not applicable

you have to put the full amount received in.  that's what...

you have to put the full amount received in.  that's what you got.  QB allows you to do one of two things with the overpayment:

1. Leave the credit to be used later

2. Refund the amount to the customer


If you choose to leave the credit to be used later, QB asks if you want to print the credit memo.

25 Comments
Not applicable

you have to put the full amount received in.  that's what...

you have to put the full amount received in.  that's what you got.  QB allows you to do one of two things with the overpayment:

1. Leave the credit to be used later

2. Refund the amount to the customer


If you choose to leave the credit to be used later, QB asks if you want to print the credit memo.

Active Member

Thank you for helping. So basically there is no way to ch...

Thank you for helping. So basically there is no way to change a delayed credit (non-posting transaction) to a credit memo (posting transaction)
Not applicable

when you receive the payment, it posts.  when you create...

when you receive the payment, it posts.  when you create the CM, that posts too.
Not applicable

Hi did you ever figure this out? My customer overpayed, Q...

Hi did you ever figure this out? My customer overpayed, QB asked and I answered credit to be used later. It asked me if I want to print it, I said no when I should have said yes. Is there a way to go back and print that now?
Established Community Backer ***

you can print a statement which will show the credit balance

you can print a statement which will show the credit balance
Established Community Backer ***

"It asked me if I want to print it, I said no when I shou...

"It asked me if I want to print it, I said no when I should have said yes. Is there a way to go back and print that now?"

That isn't really a "Credit Memo" but a Payment Credit document. There is only that Payment as the transaction type. There is no Transaction holding the Overpayment; it is part of the Math from that payment.


Established Community Backer ***

There is no Delayed Credit when you got actual Money. Tha...

There is no Delayed Credit when you got actual Money. That money over what they owed is a Credit already. And don't create a credit memo when you already have a Customer Overpayment condition. The overpayment is Negative AR; a credit memo now is another Negative AR = you doubled it.

Active Member

Re: There is no Delayed Credit when you got actual Money. Tha...

When you go to the payment transaction that has the overpayment and click on print, it gives you the option there to print a credit memo (even after you initially said no)!

 

Hope this helps!

Experienced Member

This seems like a flaw in QB that should be fixed! I had the same situation - a customer overpaid so I chose to keep the overpayment as credit on the account. However, there really SHOULD be an actual credit memo that can be tracked and sent to the customer so they can log it into their system. When it asks you to print the credit memo, it should also give you the option of logging this as a credit memo that you can give a credit number to and send to the customer.

 
QuickBooks Team

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

Hi there, @tsd81,

 

You can print the list of credit memos and send them to your customer. Just make sure to filter the transaction type by Credit Memo.

 

Let me guide you through on how to accomplish this:

  1. Go to Customers, then Customer Center.
  2. Locate the customer, then click Open Balanceopenbalance.PNG
  3. Click Customize Report.
  4. Go to Filters.
  5. Search filters by Transaction Type.
  6. Select Credit Memo, then OKcreditmemo1.PNG
  7. Click Print to print the Report or Save as PDFcreditmemo2.PNG

You can now print the credit memo of your customer.

 

If you have any other questions, I'd be glad to help them. Thank you and take care.

Experienced Member

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

Thank-you. However, this does not work for the case in question. Try in this circumstance:

1. A customer sends a payment that is greater than the open invoice.

2. When you enter the payment, QB will ask if you want to apply the overpayment as a credit on the Customer's account or give a refund. If you opt to apply the overpayment as a credit, QB will ask you if you want to print a credit memo, which you can print to a PDF if you know this is your only chance to do so. However, the PDF credit memo does not have a Credit Memo number, reference a PO number, or even allow you to include any information in the memo that gets printed. Even worse, the credit is NOT saved as a credit memo in the system so it DOES NOT show up when you filter by Credit Memo as you have shown above. It is stored as a "delayed credit" which is handled differently than a Credit Memo and cannot be displayed ever again as a credit memo from within QB. You can send your customer an account statement with an explanation of what happened but this is a poor solution (in my opinion). The better solution is for QB to allow you to create a Credit Memo in this situation so you can enter information about the circumstances of the overpayment and can look at and send it like a Credit Memo. In my case, the customer overpaid an invoice because the invoice originally sent had the wrong amount for an item purchased. The invoice was corrected but the customer paid the original amount so there was an overpayment. I would have liked to be able to send them a Credit Memo that explained which Invoice had been overpaid and why. It would also provide a good record within QB to explain what that credit was all about in case someone needed to try to figure it out. When it is stored at "delayed credit", you cannot see anything about it except the payment that was made at the time it was created. I figured out how to get around the problem but I am not the first user to have this problem and hope that QB developers will fix it in a future release. 

Moderator

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

Greetings tsd81,

 

I want to thank you for providing the complete details of your concern. This will help us isolate the situation.

 

Let me help create a printed record for the customer's overpayment.

 

Print the transaction history of the payment, so you can see the invoice, amount, and overpayment. To enter a note, write it in the Memo field and it should be included once you print it.

 

Let me show you how:

  1. Go to Customers at the top menu bar, then choose Customer Center.
  2. Select the customer's name.
  3. Under the Transactions tab, double-click the payment to open it.
  4. On the Customer Payment screen, choose Reports and  Transaction History.
  5. Click Print.
  6. Choose Preview.

image.png

image.png

 

Then, send the transaction history to your customer, so they'll have a good view of their payments.

 

I'll share this article too for reference: Accounts Receivable workflows in QuickBooks Desktop.

 

That should get you on the right track. Please let me know how that works. I'm here to provide any additional assistance if needed. Have a good one.

Experienced Member

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

Thank-you. This is another workaround, which is fine. However, I do hope that, instead of being content with workarounds to solve the problem, a future version of QB will implement this the right way and allow the overpayment to generate an actual Credit Memo.

QuickBooks Team

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

We value your time doing business with us, @tsd81.

 

While customer's overpayment isn't automatically created as a credit memo, I can pass along your feedback to our product developers.

 

This way, they'll be able to know your sentiments and needs for product enhancements.

 

They can consider adding this feature for future product updates that can greatly help other users like you.

 

Please let me know in the comment section below if you have any other questions. I'll be always around here in the Community ready to help.

Active Member

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

I could have used this feature today... customer overpaid and needs a credit memo issued...

QuickBooks Team

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

Thank you for joining the thread, @ARKadmin.

 

The feature to turn a credit into a credit memo is currently unavailable in QuickBooks.

 

However, you can follow the workaround given above which will allow you to record an overpayment. I want to let you know that we're taking note of your feedback and suggestions to improve the experience we're providing.

 

In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBDT Self-help.

 

Fill me in if you have any other questions managing your credit memo. I'll be around if you need any help.

Active Member

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

I echo the comment about this flaw in QB. It needs fixing as it is clearly causing problems for QB Users.

I have had 3 overpayments by customers over the last few months. These were all entered to their accounts as a credit on account to offset against future orders.

However, each of these customers has emailed us asking if we could issue a credit note.

We use QuickBooks Online.

Could you please raise this issue as a matter of some urgency for your developers to fix. Thank you.

In the meantime, what is the best workaround fix in QBO?

QuickBooks Team

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

Thanks for the complete details, @MartGD.

 

I'd like to verify, when you say "entered to their accounts as a credit on account", did you enter the overpayment through the Receive Payment or Credit Memo screen? If so, the credit should be posted as a negative balance on the customer's account. creditbalance.PNG

 

Sending the available credits to your clients works differently in QuickBooks Online.

 

To issue a credit note/memo, you can send a statement to your customer. By doing so,they'll be able to see their available credit which they can use for their next invoice.

 

Let me walk you through on how to accomplish this:

  1. On the customer's account, click the New transaction button at the top.
  2. Select Statementsendstatement1.PNG
  3. Click Print or Preview to review the statement.
  4. Click Save and send to send the statement. sendstatement2.PNG

To learn more on how to give a credit memo to your customer, please check this out: Enter and apply a credit memo or delayed credit.

 

Let me know if there's anything I can help you with sending credit notes to your client. I'm always glad to help.

Experienced Member

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

I also vote for this feature. It simply makes sense. If there is a credit then there should be a traceable credit memo. That is what our customers want, not a Transaction History report, not a Payment Receipt, an actual Credit Memo that is numbered and holds references for their accounting software. BTW, when I entered the payment and selected to apply as credit I never received a pop-up asking if I wanted to print a credit memo. We just upgraded to Enterprise Solutions Pro 2019 desktop, so that might be another avenue needing this feature.

QuickBooks Team

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

I'll take note of your feedback, Designer2009.

 

I'll forward your suggestions to our developers to let them know that this is something that you need. 

 

When you enter the payment and selected to apply the credit, it won't give you a pop-up or option to print it. If you'd like to print the credit memo, you can go to the customer's profile. From the list of Transactions, double-click the credit memo to open it, then select the Print icon to print it.

 

image.png

 

Please reply to this thread if you have other clarifications. 

Experienced Member

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

There is not a credit memo to print.

Moderator

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

Hi there, @Designer2009.

 

I appreciate you taking the time to provide us with an update on the steps you've tried and the outcome. Allow me to join the conversation and share additional steps to print the credit memo. 

 

 Here's how: 

  1. In the Customers Center window, select the Transactions tab.
  2. On the left pane, choose Credit Memos.
  3. Find the customer name and double-click the transaction. 
  4. Click the Print icon.

Capture 2.PNG

However, if you're referring to the pop-up notification asking to print a credit memo, this option is only available when you receive an overpayment.

 

For your additional reference about credit memo and QuickBooks Desktop, you can check the following articles: 

Please keep me posted with the result. I want to make sure this is taken care of. Thanks again for dropping by, I'll be looking forward to your response.

Experienced Member

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

Mary did my earlier file attachment not show that there was NOT a credit memo available? Please see attached after following your instructions. There is NOT a credit memo for our customer Western Digital. There is a credit on the account for the over payment but a Credit Memo was NOT created.

 

Or am I simply not understanding your instructions?

QuickBooks Team

Re: This seems like a flaw in QB that should be fixed! I had the same situation - a customer over...

Thanks for getting back to us, @Designer2009.

 

I appreciate the details and the screenshots you've provided. Allow me to chime in and share some additional information about the credit memo in QuickBooks Desktop (QBDT).

 

I read through your conversation with my colleagues to better understand the issue. What I've found out is that you'll only see the pop-up notification asking to print a credit memo by the time you receive an overpayment.

 

Here's a sample screenshot from my test file.

27.PNG

 

On the other hand, I can see how having QuickBooks to automatically creates a credit memo for an overpayment would be helpful for you and your business. While this option isn't available yet, rest assured that I'm going to submit a feature request from my side, which is sent to the Product Development Team.

 

In the meantime, you need to manually enter them as a workaround. Please refer to the article provided by my colleague @MaryGraceS above for the detailed steps.

 

Thanks for being a part of our QuickBooks family. Please feel free post again or leave a comment should you need anything else. I'll be happy to answer them. Have a great weekend.