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Anonymous
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Transferring credit from one customer to another

Hi,

 

I am new to QBO (and accounting!).  I want to transfer credits on one customer account to another customer.  The examples all show journalling the accounts receivable, but I don't have a A/R account (Is this as I am using cash accounting basis?).  How should I do this?  Basically we have a lot of customer payments recorded against what are child customers and a lot of invoices recorded against the parent customer and I want to transfer the credit showing on the child accounts to the parent account.

 

Thanks

 

Chris

 

 

Solved
Best answer 09-20-2018

Accepted Solutions
QuickBooks Team

Re: Transferring credit from one customer to another

Hello ucsdcpc,

 

Welcome to the Community.

 

You are right you would use a Journal for this transaction. What you would do is debit the debtors account against the sub customer then credit the account against the customer you want to move the balance too. I would advise checking this with your accountant ti ensure this would be correct as we are not chartered accountants ourselves.

 

Please let me know if there is anything else we can help with.

View solution in original post

7 REPLIES 7
QuickBooks Team

Re: Transferring credit from one customer to another

Hello ucsdcpc,

 

Welcome to the Community.

 

You are right you would use a Journal for this transaction. What you would do is debit the debtors account against the sub customer then credit the account against the customer you want to move the balance too. I would advise checking this with your accountant ti ensure this would be correct as we are not chartered accountants ourselves.

 

Please let me know if there is anything else we can help with.

View solution in original post

Level 3

Re: Transferring credit from one customer to another

I tried creating a journal entry, and when I click on the customer the debit shows up for the debtor and the credit for the customer I want to move the balance to. The problem is that for some reason it is not calculated into the balance for each customer. The debtor (who has a credit) still has a negative balance (meaning a credit), and the other customer has an open balance with no payment applied.

QuickBooks Team

Re: Transferring credit from one customer to another

I’m happy to see you in the Online Community, hanky.


Allow me to join the conversation. I’m here to provide some clarification about transferring customer credit and its result on the journal entry.


If you create a journal entry and post the debtor under Credit, the result is a negative value which means there’s a payment that should be applied to an invoice. To get a positive amount the debtor should be entered in the Debit section.


This indicates there’s an open balance that you’ll have to enter a payment to the transaction. Check out this article for detailed information: Transfer a credit from one customer to another.


This information should get you pointed in the right direction.


Stay in touch if you have additional questions about QBO. Please know I’ll be right here to help. Wishing you well.

 

 

Level 2

Re: Transferring credit from one customer to another

I'm using QB desktop Pro 2017 and when I try to do a journal entry for this using A/R for the account it gives me a warning that I cannot use 2 A/Rs in the same transaction.  Is there a way around this?

QuickBooks Team

Re: Transferring credit from one customer to another

Hi ProvElect1,

 

I can see that you followed the steps in the article that Rasa-LilaM shared. I already sent feedback for it. We can't use two A/Rs on one journal entry.

 

In this case, you'll create two journal entries. On the first one, you'll move the A/R balance (tag customer A) to a Wash/Clearing/Barter account. Then, on the second journal entry, move the funds from the Wash account to A/R (tag customer B). After that, you can follow the steps about applying credits in the article.

 

Thank you for pointing this out. You can also click No on the article to help us alert our knowledge team about it.

Level 2

Re: Transferring credit from one customer to another

This worked for transferring the credit to the other customer.  Now the issue is customer "A" is still showing the journal entry under transactions still due.   In the APPLY CREDIT steps it says to select the journal entry created, but it will not let me do this without putting in an amount received for payment.  

Level 2

Re: Transferring credit from one customer to another

I realized I wasn't doing this step by step...It all came together once I did.  Thank you for the assistance!