Credit

Hello there, ametz1201. I'm here to ensure your credit memo gets applied to its corresponding check so it gets recorded accurately in QuickBooks Online (QBO).

If you turn on the auto-apply credits, QuickBooks will apply the credit for you. If you turn it off, here's how to manually apply a credit memo to an invoice.

1. Select + New.
2. Choose Receive payment.
3. In the Customer dropdown, select the customer.
4. In the Outstanding Transactions section, select the open invoice you want to apply the credit memo.
5. In Credits section, select the credit memos you want to apply.
6. For the open invoice in the Payment column, enter how much of the credit you want to apply.
7. Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
8. Fill out the rest of the form, including the Payment date.
9. Make sure the total is correct after applying the credit memo.
10. Once done, select Save and close.

In addition, I've added this article if you want to learn how to enter a prior balance for a customer that owes you money or a vendor you need to pay: Manage outstanding balances for customers and vendors in QBO.

We'll be on the lookout for your reply if you have further assistance managing your customers credit in QBO. Take care.

There is nothing to apply it to when I receive the check. That is what I am trying to figure out since now looking at my register with the two transactions, debit and credit for the same thing.  I was just following what the QBO help told me to do.  The vendor sent us a check for parts returned to them that we paid COD for.  So I was just looking at my register and I see there are two transactions there for each check that I added the "resolving transactions" when matching the deposit.  There is a credit and debit in the register and that doesn't see right.

So I a trying to find out the correct way to deal with this when I receive a check for a parts refund from our vendor.

Thank you.

So am I suppose to make a credit memo under the vendor when receiving the check for the refund?

Thanks for coming back to this thread, ametz1201.

There's no need to create a credit memo since QuickBooks will automatically recognize the credit as the available funds of the customer. You can directly receive the payment and apply the existing credit.

In addition, you can check out this article if you want to personalize and add specific info to your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.

If you have further questions or clarification about credit memo in QuickBooks Online, please don't hesitate to reply to this thread. The Community is here to assist you 24/7. Take care.

I am not understanding...sorry

I'm here to clear things up, @ametz1201.

Before we proceed, can you please let me know which part you need clarification on or help with? Your response will enable me to provide accurate information and solutions.

I'll be waiting for your response.

So I just apply payment to the invoice that they are paying (that is on the check with the credit that they are taking) and do the steps that you mentioned before, and that is it?

I just want to make sure I am doing this correctly.

ok, so I understand the process the check I received from my customer is paying a different invoice in full and the credit memo for the sales tax that they paid by accident. 

1. so I will apply the payment to the invoice that is paying it in full.

2. do the process that IrishNinoJ's response says for the credit that is on the same check as paying the other invoice.  And is there a next step to do after I do that?  Like when the deposit comes through to the bank feed in QBO and when i go to match the deposit to the customer payment, how will the payment match the deposit?

Hello there, @ametz1201. Allow me to chime in on this thread

When matching deposits to payments, it is crucial to ensure that the amount and the transaction are posted accurately to the same bank. Any discrepancy in the bank details may result in an incorrect match, leading to inconsistencies in the account balance.

Furthermore, it's vital to handle overpayments with care. If an overpayment was made, do not create a credit memo. Doing so can cause issues in matching the overpayment to the bank transaction that will eventually come in. Instead, record the payment normally. The excess amount will be recorded as a credit automatically. This approach will help ensure that all transactions are accounted accurately.

Additionally, you can refer to these articles about managing your invoices:

• Customize invoices, estimates, and sales receipts in QuickBooks Online
• Record invoice payments in QuickBooks Online

Let me know if you have further concerns with your sales transaction in the program. I'll be here to help you in any way I can. Have a great day ahead. 

I am confused on how to resolve this.  The customer is taking a credit on one of their checks for an invoice they already paid it full because they are saying the invoice is tax exempt.  So they paid the invoice with the sales tax on it  and now they entered a credit memo in their system and added to a check to credit themselves the sales tax.  So if I make a credit and apply the credit to the invoice that is already paid in full in my system that will leave a credit which there shouldn't be.  So maybe I am not understanding what  you are saying and customer service is not open on Saturday so I can talk to someone.  Because I really can't talk during the week while I am at work.  

Good morning, @ametz1201. 

I appreciate you coming back and asking additional questions. 

The best route would be to contact our Customer Support Team since you're not understanding the information. This way, one of our agents can use a screen share tool and walk you through the steps that need to be done. 

Support Hours: 

Plus, Essentials, Simple Start: M-F 6 AM to 6 PM PT

Advanced: Open any time, any day

Keep us updated on how the call goes. We're always here to have your back. Take care!