Apply a credit note to an estimate

Carly · ‎November 26, 2019

Hello,

I have an estimate that I am currently using for Progress invoicing - one of the invoices has been raised incorretly so I need to raise a credit note for the invoice. The price of the job has not changed so I need the remaining balance on the estimate to increase inline with the credit note that has been raised. I cannot delete the invoice as this is a legal document that has been sent to the customer and has been raised in a prior accounting period which has been submitted to the relevant authorities.

Practical example:

Estimate Raised - £1,000

Inv 1 £100, remaining balance on estimate £900

Inv 2 £100, remaining balance on estimate £800

I need to raise a credit note for Inv 2, this means the remaining balance on the estimate should go back to £900.

Thank you,

Carly

JamesC · ‎November 26, 2019

Hello Carly,

This can be achieved, but you'll have to re-enter the line information on the invoice you're wanting to credit to maintain the amount on that invoice - which you can then apply a credit too.

Click on the invoice you want to credit, click on one linked transaction in top left and then remove on the estimate. You'll at this point need to manually re-add the information back into the invoice that the system has automatically removed when unlinking the estimate.

This will put the balance of the estimate back to (eg) £900.

You can then create a credit note and link it against the invoice in question using the Receive Payment function on the invoice, thereby writing that invoice off.

You can then re-issue the invoice as required based on the estimates new remaining balance.

View solution in original post

EmmaM · ‎November 26, 2019

Hi Carly

Thanks for your question and for providing examples

We just need to confirm the INV 2 of £100 has that been closed as payment received?Or is it still open?

Thanks

Emma

Carly · ‎November 26, 2019

Hi Emma,

Yes, we cannot delete the invoice.

We have to raise a credit and re-issue the invoice.

Thanks

Carly

JamesC · ‎November 26, 2019

Hello Carly,

This can be achieved, but you'll have to re-enter the line information on the invoice you're wanting to credit to maintain the amount on that invoice - which you can then apply a credit too.

Click on the invoice you want to credit, click on one linked transaction in top left and then remove on the estimate. You'll at this point need to manually re-add the information back into the invoice that the system has automatically removed when unlinking the estimate.

This will put the balance of the estimate back to (eg) £900.

You can then create a credit note and link it against the invoice in question using the Receive Payment function on the invoice, thereby writing that invoice off.

You can then re-issue the invoice as required based on the estimates new remaining balance.

View solution in original post

Carly · ‎November 27, 2019

Perfect thank you so much James

Ettahess · ‎October 15, 2020

I need to do the same thing, however I am using Quickbooks Desktop enterprise and there is no "One Linked Transaction" option in the top left.

Please help.

Jen_D · ‎October 15, 2020

It's great having you here in our forum, @Ettahess,

Joining the thread to share additional insights about this topic. If you're using the desktop version of QuickBooks, the steps shared by James is completely different.

May I know which transaction are you referring to that can't be deleted? What exact message are you getting when attempting to remove it? Any information or screenshots will help me rule out the problem.

Normally, in QuickBooks Desktop, you can unlink a progress by deleting either the invoice or the estimate itself. You will see a Delete button at the top of the transaction to permanently remove an entry. The option to unlink the two entries within the sales transaction is currently unavailable. Everything needs to be done manually to avoid any discrepancies in your books.

Kindly share some more information by clicking the Reply button below. I'll be waiting for your response on this. Have a good one!

Ettahess · ‎October 15, 2020

There was a progressive invoice done from an estimate and it was wrong. I can't delete it because it was done in August and that would change our financials. I need to reenter the invoice but I need the estimate to go back to the billed totals and percentages it had prior to this August invoice.

If this can't be done is there a way I can void the invoice using today as the accounting date so it will still show up in reports run for August?

JenoP · ‎October 15, 2020

You can create a journal entry to void an invoice in a different period, Ettahess.

However, that will not remove the link between the estimate and the invoice. Here's an article as a guide: Void A Transaction In Another Period

If you want to redo the progress invoicing, you can unreconcile your statement from August. However, I would recommend reaching out to your accountant before doing this for additional advice since it will affect your financial statement. Follow these steps on how to undo a previous month's reconciliation:

Go to the Accounting menu and click Chart of Accounts.
Find the account and select Account history.
Select the transaction you want to unreconcile. In this case, you will need to do this for all transactions for the month of August.
Go to the Reconcile Status column. Select the box and keep clicking it until the box is blank. This removes the transaction from the reconciliation.
Click Save. Then, repeat the same steps for the rest of the transactions in August.

Once done, you can open the invoice and void it. Then, go back the estimate and start the progress invoicing again.

Don't hesitate to reach out to us again if you need anything else.

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Apply a credit note to an estimate