When receiving a payment from a customer that has multiple invoices and credit memos, QB's does not recognize applied credit memos unless there is a payment also applied to the same invoice. Is this being fixed?
Hi there, @Par5.
I'm here to provide some insight on applying those credit memos. You'll want to ensure the Receive Payment transaction that applies the credit is properly set up to reduce the owed balance on the invoice. I'll outline the process below:
1. From QuickBooks Online, click the Plus (+) icon and select Receive Payment.
2. Choose the customer who you're crediting at the top. Once you see their list of invoices and credits, check off the ones that you need to apply.
3. In the Amount received field at the top, clear the amount by entering 0.00. You'll see the amounts in the Payment column of each invoice change to the total of applied credits.
4. Verify that the amount in the top-right says Amount Received $0.00, and then click Save and close.
Now when you head back to the Receive Payment screen, you'll see that the balance of the invoice has reduced by the amount of the applied credits. This will help you get those balances squared away so you can continue to focus on what matters in your business. Please know I'm only a post away if there's anything I can do for you.
Thank you for the information. However, this did not solve the issue. Our customers submit a payment that includes various invoices and they deduct credit memo from the payment. The remaining amount of the invoice that had the credit memo deducted is not including in the payment. We apply the payment to the invoices. Then highlight the invoice and apply the credit memo. There is no payment to apply to that invoice. QB desktop 2018 does not recognize the credit memo and gives an error message that the transaction is out of balance.
Thank you for clarifying on the exact error you're encountering. I'm committed to helping you resolve this error. An error like this is par for the course for data damage. When A transaction is out of balance, this is an immediate indication there is some form of data damage in the company file. No worries, though. This error is easily fixed through a couple of different methods. The first option is to run a Rebuild on your company file, and follow that up with a Verify Data diagnostic. Here's how you can do this:
Note: You will have to be in Single-User Mode to perform these steps, and it is highly recommend you perform these steps on the computer hosting the company file.
If the transaction is still out of balance, the next step is to delete and recreate the invoice, and the credit memos. I'd recommend printing the transactions so you have a hard copy available once you're ready to recreate them. Let me know once you're finished, or if you have any additional questions. I'm here to help.
I appreciate the quick responses. The data is not corrupt, I have tried this scenario in QB desktop 2018 and QB desktop 2016 in trying to resolve this issue for my client. Let me be more exact in laying out the problem.
A customer has invoices 101 for $100, 102 for $300 , 103 for $500 and credit memo 1 for -200 toward invoice 3.
A payment is received from the customer. They detail the amounts being paid as $100 for invoice 101, $200 for invoice 102, and taking the credit of -200 toward invoice 103. The total amount paid is $100.
QB allows setting the credit against the invoice, however, it does not deduct the credit amount from the total receipts. QB will deduct the credit amount if a payment amount is applied to the same invoice as the credit is taken against.
Thank you for the continued help!
Good afternoon, @Par5.
Thank you for going into further detail on what you're trying to accomplish. With QuickBooks, you can apply credits to invoices without including a payment from the customer, or you can apply both, together. there are two ways you can go about applying a credit to an invoice. I'm providing steps to make sure everything is being applied correctly to these invoices so you and your client have accurate records of payments and credits:
From the Invoice:
From receive payment:
Now the invoice will show a credit was applied by lowering the balance due. If you're still not seeing this after following these steps to apply a credit, there could be data damage within your company file. Just in case, I'll include that article for you here: https://community.intuit.com/articles/1501314-resolve-data-damage-on-your-company-file . Let me know if you need anything else by leaving a comment for me below.
Does this not make the amount of the check you need to deposit incorrect? I'm having this same issue in QBO. Customer sent a check in to pay for several invoices and is using two credit memos on the account. I can not get these credit memos to apply to the payment. It just keeps showing that it will result in a larger credit generated on the account. Why is this so difficult to do? In QBD, this was literally the simpliest thing to do when receiving payments.
If I receive a check for $100 and the customer is taking $20 in open credits, and I change the amount received to $0.00, then where is that $100 check showing up for my deposit that I will need to make when I take this check to the bank?
Thanks for jumping into this thread, BethatVIVO.
When applying credit memos to a payment, you'll need to record it as Receive Payment and link it to the invoice. I'll show you how to do it:
Also, let's make sure the payment transaction that applies the credits are properly set up to reduce the owed balance on the invoices.
Find out more about the process of applying credit memos in QBO: Apply a credit memo, credit, or refund to a customer.
For the $100 worth check, rest assured that it will match your bank deposit since QuickBooks will automatically clear the credits of your invoices and payments.
You can go to your customer profile to check if you've successfully linked the credit memo. Another way to check your customer's balance is to run the Customer Balance Detail report.
Should you need additional assistance with this or anything about QuickBooks, please let me know. I'll be around for you. Take care.
Hello! So I'm still a tad confused. I have to apply the credits they are using separate from receiving their payment? So it's a whole separate transaction? We aren't able to just click each invoice they are paying and then also click each credit they are using on the receive payments and it all just works out like it does on Desktop? How does this make sense? Why the extra step? Is it something that QBO is just not able to do?
Hey there, @BethatVIVO.
Thanks for following up with us. I'm happy to explain applying a credit memo further to put you at an ease of mind.
You can apply the credit straight from the Receive Payment screen. The steps are similar to QuickBooks Desktop. The only difference between Desktop and Online is in Desktop you click at the top of the Receive Payment screen to apply credits, whereas in Online, you scroll down. Allow me to show you in some screenshots below to provide you a visual reference.
1. Locate the invoice you wish to receive a payment on.
2. From the invoice hit Receive Payment.
3. Scroll down to see the credit, put a check in the box to apply it.
That's all there is to it! Additionally, to help ease the process, you can have your credit memos automatically apply to payments.
To do this:
1. Go to the Gear Icon.
2. Choose Account and Settings.
3. Click on the Advanced tab. Scroll down and select the edit icon for Automically apply credits.
Let me know if you have further questions or concerns. I'll be here every step of the way. Feel free to reach out to the Community at any time. Take care and enjoy the rest of your day.
So I am not able to apply credits while receiving a payment.
For example, my customer sent us a check for 15K. They are using 2 avail credits. I am not able to click those 2 available credits on the bottom of the screen as well as click on all the other invoices that the 15K is to be applied to. If I do that, it just adds add'l credit to be applied to the account down at the bottom of the screen. In QBD, you were able to pick and choose which credits you wanted to apply when receiving a payment and it would debit the invoice(s) for those amounts . In QBO it seems you have to apply the credits individually to invoices, therefore creating more steps to receive a customer payment who is also using credits on their account.
Hi there, BethatVIVO.
Since you're still unable to apply the credit memo to the invoice, I recommend contacting our Customer Care Team. They will be able to check your account on why you're unable to happy credits.
Due to the pandemic, we have limited staffing and have reduced our support hours. To ensure that you'll be assisted on time, please check out our support hours.
Let me know if you have other questions.
I can apply credits, but only to individual invoices. Which is the direction I was given to begin with. I need to able to apply the credits w/in the receive payment screen along w/ applying payments to the 1-500+ invoices a customer may have.
I have already contacted support and I was told to apply the credits to each individual invoice like I was shown in the above in this thread. If someone could just say, actually you can't apply credits in the receive payment window while also apply a payment on invoices, my issue would be resolved and I would know that I have to take several steps to do something that should be able to be done in a few clicks of the mouse.