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Intuit
82 helpful votes

Enter and apply credit notes and delayed credits in QuickBooks Online

Learn when and how to give a credit note or delayed credit to a customer.

Unsure whether to enter a Credit Note or Delayed Credit? Here, we outline what makes these two different, and how you can apply them to your customer transactions.

If you need to record a customer refund instead, get more help here.

Enter an apply a credit note

Step 1: Enter the credit note

  1. Select + New.
  2. Select Credit note or Give credit.
  3. Fill out all required fields (including the customer name, date, products/service items, quantities, and amounts).
  4. Select Save and close.

Step 2: Apply the credit note

  1. Select + New.
  2. Select Receive payment or Receive invoice payment.
  3. Complete these fields as follows:
    • Customer Note: Make sure you choose the customer or project you selected in the invoice.
    • Date
    • Memo (optional)
    • Leave the fields Pymnt Method, Ref#, Deposit to, and Amount blank.
  4. Under Credits, select Credit note or Give credit.
  5. Verify that the total to pay (if any) is correct after applying the Credit Note.
  6. Select Save and close.

Set up to apply credits automatically

You can set up QuickBooks to automatically apply credit notes to your invoices. To do this:

  1. Select Settings ⚙ and then Account and Settings.
  2. Go to the Advanced tab.
  3. In the Automation section, select the Edit ✎.
  4. Select the Automatically apply credits checkbox.
  5. Select Save, then Done.

Enter and apply a delayed credit

Step 1: Enter the delayed credit

  1. Select + New.
  2. Select Delayed credit. Or if you're in Business view, follow the steps to switch to Accountant view first. Then come back to these steps..
  3. Complete all the necessary fields (including the customer name, date, products/service items, quantities, and amounts).
  4. Select Save and close.

Step 2: Apply the delayed credit

  1. Select + New. Then select Invoice or Send Invoice.
  2. Choose the appropriate customer and complete the necessary fields. Note: Available delayed credits are listed on the right pane of your invoice. If you don't see this, select the arrow next to the invoice balance.
  3. To add a delayed credit to the invoice, select Add.
  4. select Save and close.

Note: Adding a delayed credit to an existing invoice with a prior period date will change prior period balances.

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