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Level 1

Carry over items from one job to the next, crediting customer a and billing customer b?

I run a construction business and have a first time scenario come up since using QB Desktop.  To help customers out I like to take leftover materials from their jobsite and pass them onto the next customer.  For example, some plumbing fittings, or some studs, or some nails.  I want to show credit to the customer who was already billed and paid for those items, and then charge or bill the next customer for them.  So I have two jobs, being unique customers.  If I go to the past bill I paid for said materials, I can change whom that material was for but that seems like it would cause a nightmare for my records and not show that the customer was credited.  Is there any easy way to credit one customer and bill the next for materials that one customer paid for and the next customer has not been billed for? 

 

I am trying to track what material is being credited back, so they know what and where they were credited.  If I just make a misc. credit, I don't see that helping me.

5 Comments
QuickBooks Team

Carry over items from one job to the next, crediting customer a and billing customer b?

Hey there, @CCCBuilder

 

Thanks for reaching out to the Community for support. I'm happy to provide insight into crediting one customer and billing another customer for the leftover materials. 

 

To offer a suggestion for this concern, you could create a credit memo for customer A and then invoice customer B for the leftover materials from customer A. On the invoice for customer B, you can leave a note stating it was leftover material from customer A. 

 

However, it's always best to consult with your accountant before making any changes in the company file. Your accountant will know the best course of action for you and your business. If you don't have an accountant, don't sweat. You can find one here in our Resource Center

 

In the meantime, I've included some handy articles that you may find beneficial below. 

 

Please let me know if you have any questions or concerns. You can reach out to the Community or me at any time. Take care and enjoy your day ahead! 

Level 1

Carry over items from one job to the next, crediting customer a and billing customer b?

Hi there, so if I do a credit memo will it offer me the option to credit items to customer a? And then when I invoice customer b, does that expense still show up to my business?

 

Say I buy ten studs from the store.  I bill customer A for the 10, they paid for the 10. At the end of the job, there are 4 leftover.  I want to show that customer A only used 6, and was credited for 4.  But I want the business expense of those original 10 to stay... so that it does not look like I went and bought 4 new studs for customer B.

QuickBooks Team

Carry over items from one job to the next, crediting customer a and billing customer b?

Thanks for getting back here, @CCCBuilder. I can share some steps so you can move the credits from one job to another in QuickBooks.

 

To start, you'll have to set up a clearing account, then create two Journal Entries for customers A and B. The first JE is for customer A to remove the balance in Accounts Receivable (A/R) and move it to the clearing account. The second JE is to transfer the clearing account balance to A/R of the customer B. Please refer to the steps below.

 

Set up a clearing account

 

  1. Go to the Lists menu, select Chart of Accounts.
  2. Right-click anywhere in the Chart of Accounts, then click New.
  3. In the Add New Account window, tick the Bank radio button.
  4. Hit Continue.
  5. In the Account Name field, enter Clearing Account.
  6. Do NOT enter an opening balance.
  7. Tap Save & Closeclearingaccount.JPG

 

Next, create a journal entry so the customer A's balance will move to the clearing account:

 

  1. From the Company menu, click Make General Journal Entries.
  2. On the first line, debit the Accounts Receivable with the amount to be transferred. In the Name column, select Customer A.
  3. On the second line, credit the Clearing Account.
  4. Select Save & Close.  cxa.JPG

 

Then, transfer the amount in the clearing account to customer B's A/R:

  1. Navigate to the Company tab, and then choose Make General Journal Entries.
  2. On the first line, credit the Accounts Receivable with the amount to be transferred. In the Name column, select Customer B.
  3. On the second line, debit the Clearing account.
  4. Hit Save & Closecxb.JPG

 

For more details about the process, please see this article: Transfer customer credit from one job to another

 

Before doing any modifications in your file, we recommend always create a backup copy so you can restore your data anytime to undo the changes made. 

 

Also, I've added this great source where you can find articles that can help you in managing your books in QuickBooks, please visit our QBDT help articles page. This includes topics such as reconciliation, track income and expenses, run reports, etc.

 

Keep me posted if you need anything else with transferring customer credits. I'd be glad to help. Take care always.

Level 1

Carry over items from one job to the next, crediting customer a and billing customer b?

Okay, I read through this and it seems somewhat straight forward. However, it is moving a charge from B to A when I want to refund A and bill B.  I assume I just reverse the credit/debit amount for each customer, using Clearing Account as the temp-intermarry account.

 

However, this does not allow me to show what items customer A is being refunded against their job cost report, nor do those items moved to customer's B's location show up what they are paying for... just the credit or debit.  Is this true, or is there a way to show the line item they are being credited or debited for so their job cost report is accurate?

QuickBooks Team

Carry over items from one job to the next, crediting customer a and billing customer b?

Hello there, @CCCBuilder.

 

We'll need to create a refund receipt for customer A to show the line items. Then ensure you use the same bank and account as the original transaction.

 

Here's how:

  1. Go to the Customers menu.
  2. Choose to Create Credit Memos/Refunds.
  3. Select the name of the Customer: Job.
  4. Enter the credit memo details.
  5. Click Save and Close.
  6. Choose Give a Refund.
  7. Select Ok
  8. Review the refund information. 

For further guidance, you can also check out this article: Record a credit memo or refund in QuickBooks Desktop.

 

Also, you can always visit our Help Articles hub for QuickBooks Online in case you need some related references in managing your account and other related transactions.

 

Don't hesitate to drop a comment below if you have other questions. I'm more than happy to help. Take care!

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