How to handle a return / exchange?

given that there is an amount due, this can be done using just an invoice - no c/memo needed - by entering the return quantity as a negative and the new item on the next line as a positive

"by entering the return quantity as a negative and the new item on the next line as a positive"

I used to do things that way; then I realized that in Transaction reports and in the Customer transaction listing, everything shows as 0, and you have to Open it to see what was the Actual sales info. And by having Credit memos, I know that involved a Return.

I have an almost identical problem, although I would like to use the situation you put forth in this post. When I create a new order with the negative item (valued less than the new item), quickbooks automatically changes the negative to a positive when the document is saved. Is there a company setting that allows negative quantities to be entered on documents?

@Aaron29

Why are you using a Negative anywhere? You make a Credit Memo (customer return) and there is no Negative entry anywhere. Then, you are either refunding that value or applying it to their Next order.

---

@Aaron29 wrote:

 When I create a new order with the negative item (valued less than the new item), quickbooks automatically changes the negative to a positive when the document is saved. Is there a company setting that allows negative quantities to be entered on documents?

 

 

---

No there is no setting required.  I have not seen such behavior.

Just enter one negative, in the amount. 

Also clear cache

I have the same issue and i tried to create Credit memo. However, the credit memo status is always showing "unapplied" and i am not able to link any invoices to it. 

Let's perform some troubleshooting steps to correct the credit memo status, SSKGLOMIX.

We can run the verify and rebuild tool to check if it has something to do with your data. This tool self-identifies the most commonly known data issues within a company file and self-resolves most data integrity issues. Just follow the steps and detail in his article: Fix data damage on your QuickBooks Desktop company file.

Then, we can delete and recreate the credit memo and manually apply it to your invoice. Let's create a back up your company file first just in case you ever run into problems we can use it to restore your data. Let me walk you through the steps on how to do it:

To delete the credit memo: 

1. From the Customers menu, pick Customer Center.
2. Select the customer's name.
3. Double-click the Credit Memo transaction.
4. Click the Delete icon, then OK.

To recreate the credit memo: 

1. From the Customers menu, pick Create Credit Memos/Refunds.
2. Select the correct customer from the Customer:Job drop-down menu.
3. Enter all the necessary details.
4. Click Save & Close.
5. Once the Available Credit window shows up, choose Retain as an available credit.
6. Click OK.

If you don't want to apply the credit memo to other open invoices, we can uncheck the Automatically apply payments option. Here's how:

1. Click Edit at the top and select Preferences. 
2. Go to Payments from the left menu.
3. Select Company Preferences. 
4. Make sure that the Automatically apply payments is not selected.

For more details, just click this article: Give your customer a credit or refund in QuickBooks Desktop for Windows. On the other hand, you can also check this link for your future reference about QuickBooks Desktop and how to resolve issues when applying for a payment: 

• Help articles for QuickBooks Desktop
• Resolve common issues when applying a payment towards an invoice

Let me know in the reply section below if you still have questions or concerns. I'll be around to answer them for you. Take care and have a great day ahead.