What to do with a credit payment

Hello, @missymarykay55.

I'd be glad to provide you with the correct way of refunding a customer deposit.

First, you'll need to create a check and apply the account receivable to your customer's check to offset the credit. Here's how:

1. Go to the Customers menu.
2. Select Create Credit Memos/Refunds.
3. Select the customer on the Customer:Job drop-down menu. You should see their available credit memo.
4. Select Refund. It'll then open the Write Checks window.
5. On the check, fill out the required info.
6. Note: make sure to use Accounts Receivable as the account, then select Save.

Then, utilize the Receive Payment feature to link the check and the available credit. To guide you further, please follow these steps:

1. Still, go to the Customers menu.
2. At this time, select Receive Payments.
3. Select the customer on the Customer:Job drop-down menu. You’ll see the refund check you created, and their existing credits.
4. Tick the Apply Existing Credits? checkbox.
5. Once ready, hit Save.

Learn more about this process by viewing this article: Give your customer a credit or refund in QuickBooks Desktop for Windows.

Lastly, I encourage you to reconcile your accounts every month. This is to track your income, expenses, and any possible errors accordingly. You can check out this article for the detailed steps: Reconcile an account in QuickBooks Desktop.

I'll be here if you have other questions about handling your sales transactions in QuickBooks. Have a good one!

I don't think I made things quite clear in my previous post.  We received a payment from a potential client in the amount of 2500.00.  She decided not to go through with the project so we wrote her a check back in the amount of 2000 minus 500 for fees incurred.  The 2500 check has cleared the bank and the 2000 check as well. The 2500 however still shows on her account as a credit.  I want to get rid of that credit on her account how do I do that?  

I appreciate you for getting back to us, @missymarykay55.

I’ll chime in this thread and help you handle your customer’s credit. 

We can offset the credit in your customer’s account by writing a check affecting the Accounts Receivable account. I’d be glad to show you how: 

1. Go to Banking from the menu bar and select Write Check. 
2. Enter the Payee Name from the Pay to the Order of: 
3. Use the Accounts Receivable for the account.
4. Then enter the amount of 2000. 
5. Select a Customer: Job and click Save and Close when done. 

Then, proceed with creating an invoice and enter the amount of the 500 item fee. 

1. Choose Customers from the menu and select Create Invoices. 
2. Choose a customer from the Customer: Job.
3. Enter the Item and the Amount of 500. 
4. Click Save & Close. 

Now, we can receive the payment to link the remaining credit amounting to 500 with the invoice. With this, it can offset the credit from your customer’s account. Thus, it won’t show in the Accounts Receivable report. 

For more details about this process, check out this guide here: Give your customer a credit or refund. 

Additionally, here's an article you can read to know more about handling your accounts receivable workflows in QuickBooks: Get started with customer transaction workflows in QuickBooks Desktop.

Please let me know if you have additional questions or concerns about the customer's existing credits in QuickBooks Desktop. Tag me in your reply and I’ll sprint back into action.

We already wrote a check for 2000 refunding her money and that check has cleared the bank so do I write another check?

OK I did what you said in your instructions and that worked, however when I run my Open Invoices report under that client it shows payment that was recorded on 6/30/21 for -2000.00 and on 6/9/22 +2000 leaving a balance of 0.  Is there anyway to get that off of my Open Invoices Report or will it always show under the clients name that way?

Ok thank you I was hoping that could be removed but I understand.

Thanks for your patience, missymarykay55.

I'm happy that the instruction given by my colleague works for you. If you have other QuickBooks concerns, please let us know. We're always available to help you.

Also, I encourage you to visit our Help article page. Here you can find topics and discussions to assist you in completing some of your QuickBooks tasks.

Have a great day.