Re: We are a general Electrical Company that uses AIA billing. After talking to the prime contractor the boss decided to drop his price or do some items for free. How do you reflect this ? Do I create a credit memo to the invoice , credit memo on the Estimate or just change the numbers on the estimate?
Allow me to share some information on how QuickBooks handles
First of all, an estimate is not a posting transaction. Thus, credit memo will not applied on it. If your company implement price rollback or change, you can apply this on the Estimate. By doing so, changes will be applied on the current and future estimate and invoices.
To close the balance of the invoices you already sent to your customer, you can either create a credit memo or write a bad debt.
Thanks for coming back with those details. Let me help clarify things for you.
You're on the right track in handling credit memo for billing invoices. In your case, you'll just need to create a credit memo. There's no need to write a bad debt since you only change the invoice price.
You should be all set. If you have additional questions about this, just let me know as I'm always here to help.