Apply a Statement Credit for a purchase from the Customer
A statement is sent weekly to a customer for daily purchases. I recently purchased item from the customer for resale in my business and the customer wants me to issue a credit on the weekly statement. Please help with the correct entries for QuickBooks Online. I have an expense category for this item, but it doesn't pop up for the credit memo. Do I have to create some type of category in the Products/Service? I do not want to track inventory in QBO because it is tracked in my retail POS.
Credit memos require a product or service, not just an expense account. Create a service or non-inventory product, and under 'Income account' on the product set-up screen, select that expense account. Then, add that product/service to the credit memo. That credit memo will then show as a reduction in the balance due on the customer's statement.
Apply a Statement Credit for a purchase from the Customer
@Rainflurry I spent over an hour on the phone with QBO customer support this morning and got no where with my question. They gave me a work around, but it did not accomplish what I was trying to do. Your information was perfect. The item for which I needed to prepare a credit memo now appears in my cost of goods sold because your instructions for how to set up the product/service item was spot on. That is exactly what I had been trying to do, but didn't know to select the expense account for the income account. Thank you so much!!
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