How to restore a deleted client - Because QB online gave a Credit for deleted invoice

I will explain in detail how the system deals with an inactive customer in QuickBooks Online, komatthew. And I’ll assist you in restoring them as well.

QuickBooks generates a credit memo automatically because you won't be able to delete a client who has an open balance. You will get a warning that the client has an open balance, and it will ask if you want to proceed. Please check the attached screenshot:

To fix this, we should reactivate the customer and then void the credit memo. This will bring back the open balance of the deleted invoice. Then, delete the invoice again before deactivating the customer. This makes sure the customer balance is zero.

To reactivate customer:

1. Navigate Sales and select Customers.
2. Click the Gear icon above the ACTION icon.
3. Put a mark next to Include inactive.
4. Locate the customer and click the Make active button.

I've added an article to learn how to manage your customers in QuickBooks Online: Add and manage customers in QuickBooks Online

Moreover, you can create and send customers statement to show their summaries of their invoices, payments, credits, and balances.

You can count on me if you need further help managing customers or other tasks in QuickBooks. Leave a comment below to notify me. Have a good one.

Thanks for the reply, but I never got any type of warning.

How to do I "reactivate the customer"?

I tried recreating the customer but that didn't seem to work.

Thanks,

@komatthew 

"Not sure why the system would automatically make a $4700 credit."

QB creates the credit memo because somehow you made the customer inactive when they had a $4,700 open invoice.  At this point, make the customer active again by going to Customers > Settings (gear icon) > click 'Include inactive'.  That will make the customer active again and you will see the credit memo.  You can delete it or whatever you want to do from there.  

@komatthew 

"...make the customer active again by going to Customers > Settings (gear icon) > click 'Include inactive'."

Oops, forgot to mention that after including inactive customers, you need to click on the inactive customer and then click the 'Make active' button in the upper-right.