Credit Memo Debited Account

Welcome to Community, kjvolin. 

You can transfer the remaining balance to the  FY Carryover account to zero out the checking account.

To do this here's how:

1. Go to the Banking Menu.
2. Choose Transfer Funds.
3. In the Transfer Funds From the drop-down, choose US Bank.
4. Select Regions Bank on the Transfer Funds To drop-down.
5. Enter the transfer amount.
6. Click Save and Close.

To ensure your records are in shipshape, I suggest consulting an accountant before performing the process. They can provide suggestions on how to properly handle the account.

Also, here's an article for other banking concerns: Get started with Bank Feeds for QuickBooks Desktop.

If you have other questions about managing your bank transactions in QuickBooks, feel free to leave a post below. I'm always here to help.

@LeizylM , you didn't answer the question.. please read again.. it's a posting issue, not about accounting...

"We create credit memos for each homewowner which posts a negative amount in Accounts Receivable and a positive amount in checking bank account. This doubles our balance in the checking account. I originally thought that I should transfer the remaining end-of-year balance to a "Fiscal Year Carryover" account, zeroing out the checking bank account. Then the credit memos would would debit the FY Carryover account"

Hi, finding-none-sense-answers.

To zero out the checking account, move the remaining balance to the FY Carryover account. This is to avoid the account from having a double balance in QuickBooks Desktop.

If you want to run QuickBooks Desktop reports to review your transactions such as, Transaction List by Customer, you can use the reference below about handling QBDT reports:

• Customize reports in QuickBooks Desktop.
• Understand reports. 

Let me know if you have other questions. I'll do my best to respond to you as soon as I can. Take care and stay safe always.

@my-answer-is-nonsense 

Unless you're actually withdrawing the funds from the checking account, you'll want to leave the checking account alone.  As you noticed, entering a credit memo automatically reduces A/R which, from an accounting perspective, is the credit.  The item that you assign the credit memo to and, more importantly, the account that the item is mapped to, dictates the debit.  If you assign it to an item mapped to your checking account, it will increase the checking account balance (debits increase assets) which, obviously, you don't want.

In the case of an HOA surplus being returned to the homeowners, I would suggest setting up an equity account called "FY Surplus Credit To Homeowners" or something similar and then set up an item named the same and mapped to the new equity account.  Then, issue credit memos to the homeowners for this item.  That will reduce both A/R and equity which is really what is happening - you are refunding the homeowners equity in the HOA.  The A/R balance will increase when future invoices are issued and your CPA will be able to see the equity reduction on the balance sheet and make the appropriate adjustments as they see fit.