With QuickBooks 2019 and later versions, you can now transfer credits from one customer job to another in just a few clicks.
Note: You must have user access to the Chart of Accounts to complete this process.
- Open the invoice you're transferring the credit to.
- Select Apply Credits. Credits from another customer job would show under available credits.
- Select the existing credits then Done.
- On the Confirm transfer window, select Yes to complete the transfer.
This is an irreversible action. If you need to modify/reverse this action, please be sure to consult with your accountant before making any changes.
When this action is performed, there will be 2 General Journal entries created by QuickBooks to transfer the credits to the required Job. The memo for these journal entries will say “Transfer of Credits for …” to make it easier to understand later. Also, the first time the transfer credits feature is used, QuickBooks creates an “Other Current Assets” clearing account to move the credits. It will show inactive so that it’s only used to transfer credits.
Manually transfer customer credit
If you're using QuickBooks 2018 and earlier or QuickBooks Accountant, you need to manually transfer and apply the credit from one customer job to another. Here's a step-by-step guide:
Step 2: Create a journal entry to move the credit from the customer:job to the wash or clearing account.
Step 4: Create a journal entry to move the credit from the clearing account to another customer:job.