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Intuit
1 helpful vote

How can I transfer a credit from one customer to another?

To transfer the credit from one customer to another you must first create a journal entry and then apply the credit.

Create a journal entry

First, you'll need to follow these steps to create a journal entry for the transfer:

  1. Select Create ⨁, then Journal Entry.
  2. Enter the date in Journal date.
  3. On the first line item, select Accounts Receivable (A/R) from the Account drop-down list.
  4. In the Debits field, enter the amount being transferred.
  5. In the Memo field, note the reason of the journal entry.
  6. From the Name drop-down list, select the name of the customer the credit is being transferred from.
  7. On the second line item, select Accounts Receivable (A/R) from the Account drop-down list. The credit amount and the memo auto populates.
  8. From the Name drop-down list, select the name of the customer the credit is being transferred to.
  9. Select Save.

Apply the credit

Next, you'll apply the credit by following these steps:

  1. Select Create ⨁.
  2. Under Customers, choose Receive Payment.
  3. Select the name of the customer the credit was transferred from.
  4. Under Outstanding transactions, check the journal entry you created.
  5. Under Credits, check the adjustment note you need to transfer.
  6. Select Save and Close. (Note: This removes the credit from the customer you are transferring the money from.)
  7. Select Create ⨁.Under Customers, choose Receive Payment.
  8. Select the name of the customer the credit was transferred to.
  9. Under Outstanding Transactions, select the invoice you want to apply the credit to.
  10. Under Credits, find and check the journal entry you created.
  11. In the Payment column, enter how much of that credit you want to apply.
  12. Select Save and Close.

Now you're able to transfer the credit from one customer to another.

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