Hi @VanguardAccounting , Thanks for reaching out to the community.
That's a fabulous approach to take, especially since you're taking over the bookkeeping from somebody else. QuickBooks Desktop is a robust accounting software and it's important that the correct steps are followed to clear up issues. Let me explain what I mean.
Once the books have been closed, you're be restricted in terms of what data you can access and edit. In order to modify or delete credits from previous years, you must know the closing date password that was set by the previous bookkeeper. QuickBooks Desktop will allow you to enter transactions that'll affect the balance of closed fiscal years, but it isn't advised.
I recommend checking in with an accountant to see what the best way is to handle this scenario, but I'll let you know what options are available in QuickBooks Desktop for handling that kind of transaction.
Below are the steps to following QuickBooks Desktop:
Click the "Customers" menu and select "Customer Center" from the drop-down list
Select the "Customers & Jobs" tab.
Choose the customer with the available credit from the customer list.
Open the credit memo you want to delete.
Click the "Edit" menu. Select the "Void Credit Memo" or "Delete Credit Memo" option from the drop-down list, depending on your preference. If you receive a warning that voiding the memo changes any attached invoices select "Confirm."
Have an amazing day!
