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Community Contributor *

How do I issue a credit memo for an old 2017 overpayment on an invoice?

A customer has a credit balance remaining from over payment in 2017 books, which are closed. I need to be able to send them a credit memo now for their audit trail. How can I create a credit memo now in 2019 for on old over payment from 2017?

4 Comments
QuickBooks Team

Re: How do I issue a credit memo for an old 2017 overpayment on an invoice?

Hi there, @TomOs,

 

Let me share some information with you about creating a credit memo.

 

You can create and send a statement for the credit if the overpayment is still showing on the customer's balance. This is to notify them about the available balance from the previous transaction.

 

Otherwise, you can create a credit memo if the customer's balance is zero. This way, you're able to apply the credit to the next invoice or issue a refund

 

Here's how:

  1. Click the Customers menu, then select Create Credit Memos/Refunds.
  2. Select Customer from the drop-down list.
  3. Enter the returned items in the line item area, then select Save & Closecreditmemo1.PNG
  4. On the Available Credit window, select on how you would like to do with the credit.
  5. Click OKcreditmemo2.PNG

Check here to learn more about creating credit memo: Record a credit memo or refund in QuickBooks Desktop.

 

That will answer your concern for today. Don't hesitate to leave a comment below if you have questions about QuickBooks. Have a great day ahead.

Community Contributor *

Re: How do I issue a credit memo for an old 2017 overpayment on an invoice?

Thank you for the response but I cannot create a credit memo as the credit balance is for an overpayment of an invoice 2 years ago. This is not a recent purchase being returned for credit. The customer is requesting a credit memo as a statement is insufficient for their accounting department. any additional ideas?

Anonymous
Not applicable

Re: How do I issue a credit memo for an old 2017 overpayment on an invoice?

Welcome back to our forum, @TomOs,

 

Allow me to step in and share some insights about customer overpayments in QuickBooks Desktop.

 

When there is an overpayment, you no longer need to create a Credit Memo. Doing that will only generate a duplicate entry for the same value. A customer overpayment is already an AR credit and is available whenever you create an invoice.

 

If you need help correcting entries from a closed year, it is best to ask an accounting professional on how to handle negative Accounts Receivables. However, if you don't want to create a refund for this customer, you can print them a Customer Balance Detail report.

 

Here's how:

  1. Click Reports.
  2. Choose Customers & Receivables.
  3. Select Customer Balance Detail.
  4. Hit the Customize Report button.
  5. On the Display tab, edit the report date in the From and To fields.
  6. Go to Filters.
  7. From the Filters box, click Name.
  8. From the Name drop-down, click the Customer name.
  9. Click OK.
  10. To print the report, click the Print button at the top.

That should give you a detailed list of your customer's payments and balance.

 

Please let me know if you have any more questions about the process. You can contact me again by clicking the Reply button below. Have a great day!

Community Contributor *

Re: How do I issue a credit memo for an old 2017 overpayment on an invoice?

Thank you for the response but it too will not solve the issue. The customer cannot work/pay from a statement and wants something like a credit memo to use to enter into their system so they  can short pay an invoice and apply the credit. since this overpayment occurred in 2017 and we did not create print the credit memo at the time of the receiving of overpayment, we missed our opportunity to do so and cannot now that the payment has been recorded. Since books are closed I am not going to alter the payment now and I don't want to create a dummy credit now and delete after mailing. Thanks though for the response. I am just telling the customer the best we can do is send a statement and apologize I cannot produce more.

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