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Level 1

received payment not recognizing credit memo

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?  

5 Comments
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Content Leader

received payment not recognizing credit memo

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.

 

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Level 1

received payment not recognizing credit memo

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.  

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QuickBooks Team

received payment not recognizing credit memo

Hello, @Par5.

 

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.

  • Go to File in the upper left-hand corner and click Utilities.
  • Go down to Rebuild Data.
    Note: You will have to make a back up before QuickBooks rebuilds your data.
  • Once the rebuild is completed you will be able to view a list of errors that were and were not fixed. You can save these as a .pdf if you'd like, but it's not necessary.
  • Now you can run a Verify. Go to File, then Utilities.
  • Click Verify Data.
  • Once the verify is finished, you can also save the results as a .pdf.
  • Now see if your transaction is in balance.

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.

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Level 1

received payment not recognizing credit memo

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!

Highlighted
QuickBooks Team

received payment not recognizing credit memo

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:

  • Open the invoice you want to apply the credit to.
  • Across the top, click Apply Credits.
  • Check off the credit you'd like to use, and then click Done.
  • Now select Save & Close.

From receive payment:

  • From the Receive Payment screen, check and highlight the invoice you wish to have the credit applied to.
  • Select Discounts and Credits across the top.
  • Click the Credits tab and check off the credit you would like to apply to the invoice, and click Done.
  • You will now see a column for Credits, with the credit amount there.
  • If you're not making a payment, and just applying a credit, make sure the Payment Amount field across the top and the Payment field on the list of invoices is 0.00.
  • Verify all other information is filled out as desired, then click Save & Close.

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.

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