Credit Memo Related Transaction Linked to the Wrong Deposit

Hello there, grsrockets.

You have the option to delete your transactions or unlink the related transactions. However, the linked transactions might have been reconciled and once deleted or unlinked can mess up your reconciliation. I suggest reaching out to an accountant to help you trace the transaction and check if you can delete them without errors. 

To delete a deposit, you can follow these steps: 

1. Click the Lists menu and then Chart of Accounts.
2. Look for the account where the deposit is posted. Double-click it.
3. Double-click on the deposit to delete.
4. Click Edit and select Delete Deposit.
5. Select OK to confirm.

You will have now unlinked transactions in which you can create a payment, then, deposit them correctly. 

After you have managed your transactions, you can reconcile the account or run financial reports to get an overview of how your business is going. 

If there's anything else that you need, feel free to leave a comment below. Have a nice day.

Catherine_B Thank you for your response. The original deposit that I had referenced has been reconciled which is the one that is linked to the Credit Memo Related Transactions. The second deposit has not been reconciled. Given this it appears that I would need to somehow reverse the reconciliation but I'm not sure that this would be the best approach. I could keep the original deposit and delete the added one but that would mean changing more Related Transactions in the Sales Receipt and the Credit Memo which is why I had considered that the first approach might be simpler but had neglected to consider the reconciliation process. Given this I may need to Void and then Recreate the Sales Receipt and Credit Memo. Would you suggest this as the most appropriate approach to resolve the issue?

Yes, that will work, @grsrockets.

The first approach you've suggested may affect your previous reconciliation. The second one would be the closest way to resolve the issue. Before doing that, make sure to back up the QuickBooks company file. This way, you can restore your data if you ever run into problems.

Additionally, you may still need to do a special reconciliation after voiding and recreating the sales receipt and credit memo. For more info, check out this article: Mini Reconciliation.

Lastly, I'm linking our guide about fixing beginning balance issues. This helps you how to handle them due to different possible reasons.

You can always count on me if you need further assistance with your reconciliation. Have a great day.

Liera_Marie, thank you for your response. Upon further investigation I've found that my Original transaction has no Sales Receipt associated with it. It was a Sales Order deposit created in Quickbooks POS. For completeness sake there is no invoice associated with it either. Given this if I retain the existing Credit Memo it is currently pointing to the Original deposit which is what I want but under the Customer tab it shows the Recent Transactions as itself and the Sales Receipt I would be voiding/deleting but not the Original transaction. If someone could assist with the following questions I would certainly appreciate it:

1. Perhaps this is why Quickbooks perceived an issue and created the Sales Receipt in the first place? If so, will removing the Sales Receipt just cause Quickbooks to detect what it believes to be another error?
2. In any case, will voiding/deleting the additional Sales Receipt cause a problem since it is referenced as a Recent Transaction by the Credit Memo? If so, how would I address this issue?
3. Will the system update the Credit Memo to reference the Original transaction by the customer which would fix the problem or is there a way that I can force the Credit Memo to reference the Original transaction?
4. Also, is it a problem if the Original Transaction is not listed in the Recent Transaction list?
5. Finally, would it be better to void or delete the Sales Receipt and associated deposit?

Thank you in advance for any assistance you can provide.

Thank you for sharing additional information, @grsrockets.

I'll be happy to answer your questions one at a time. This way, I can guide you accordingly in managing QuickBooks transactions.

To start with, please know that transferring sales transactions from QB POS, it'll show as sales receipts in QuickBooks Desktop. In this case, you can delete the sales receipts. Don't worry, it won't cause any errors in your transactions.

For your second question, the credit memo will be open once the sales receipt is deleted. Then, for your third question, the credit memo doesn't apply to the original transaction automatically. Instead, you can manually apply it.

For your fourth question, the original transaction should be listed in the recent transaction list. Since it isn't showing, I suggest running the Verify and Rebuild Utility tools to fix some data issues.

Lastly, it's best to void or delete the sales receipts and deposits if these transactions are not spoused to be added to your QuickBooks Desktop.

Most importantly, I encourage you to create a backup copy of your company file before making any changes.

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response.

Hello Mark_R,
First I appreciate your responding to my questions and unfortunately I was unable to attempt the proposed actions until this evening. As suggested I backed up my data and then verified the company file. When this process completed I received the message "Quickbooks detected no problems with your data." Consequently, I don't think I need to go through the Rebuild process since no problems are being detected. But let me know if I should anyway. Again I went through the Sales Receipts and Invoices and there is no Sales Receipt that matches the transaction in the undeposited funds account. If you look at the transaction for Jack Davis on 3/23/2020 (see Undeposited Funds above) you'll see that there is not a sales receipt referenced but a check number 2011-1177 (not sure where this number came from since it was an electronic deposit for a POS Sales Order). The Sales Order deposit was refunded on 5/10/2020 as shown in the Return Receipt (see above) and its reference in the Customer tab to the Sales transaction on 4/7/2020 instead of 3/23/2020. Note that when I select the 3/23/2020 transaction I do not get a Sales Receipt but a deposit record (Figure 3). So since I already have a Return Receipt linked to the wrong transaction. Do I need to delete and recreate it? If so, then the problem is that creating a Credit Memo/Return Receipt is that in giving the refund I need to link it to an invoice but there is no invoice to link it to - only a deposit. However, if deleting the Sales Receipts will not cause errors in the transactions then is the simplest solution to just delete the two Jack Davis transactions on 4/7/2020 and would that solve the problem even though the Return Receipt on 5/10/2020 is currently point to the 4/7/2020 Sales Receipt?

Hi there, @grsrockets. I want to make sure you can link the return receipt to the correct transaction.

Any linked activities will be shown under the Related Transactions section in the Transactions tab. To get a clearer vision of them, I'd suggest running the Transaction List by Customer report. 

Here's how:

1. Go to the Reports menu.
2. Choose Customers & Receivables and select Transaction List by Customer.
3. Click on the Customize Report button.
4. Go to the Filters tab.
5. Search for "Name" and select it.
6. From the Name drop-down, select Multiple names. Select the customer's name from the list and click OK.
7. Search for "Amount" and select it.
8. Click the = radio button and enter "1,312.5" in the field.
9. Select OK.

Doing this allows you to see all transactions with the amount of 1,312.50 for that specific customer. To view any linked activities, follow these steps:

1. Double-click the transaction.
2. Select the Transaction tab.
3. See the Related Transactions section.

If you're able to verify that the return receipt was matched to the wrong transaction, I'd suggest deleting and recreating it. Also, when creating a credit memo or return receipt, you have three options to handle them. You can retain it as available credit, give a refund, or apply it to an invoice. For more info, check out this article: Give your customer a credit or refund.

If you have any follow-up questions regarding this, feel free to drop a comment below. I'm determined to ensure your success.

LieraMarie_A,

As suggested I ran the report which only shows the Sales Receipt on 4/7/2020 and the Credit Memo on 5/10/2020 but not the 3/23/2020 deposit transaction. I do not have any reconciliation issues since I haven't deposited the funds specified by the 4/7/2020 transaction which was created by Quickbooks when it attempted to fix an issue it detected (possibly the lack of a Sales Reciept). I do  want to delte the 4/7/2020 transactions since they are causing the issues but the problem I would have if I delete the credit memo is that since I need to create a refund there will be no invoice or Sales Receipt to tie it back to since there is no Sales Receipt in the system for the 3/23/2020 deposit transaction and the 5/10/2020 credit memo has been reconciled so deleting it would cause additional reconciliation issues.

Hey there again, @grsrockets. 

Thanks for reaching back out to the Community. 

Since you're still having issues with this problem, I recommend contacting our Customer Support Team for additional assistance. They'll be able to use some tools to help you out. Here's how: 

1. Go to the Help menu. 
2. Choose the QuickBooks Desktop Help option. 
3. Tap the Contact Us hyperlink. 
4. Enter your question and press Let's talk. 
5. Scroll down and select to Get a callback. 

It's that easy! 

Please inform us on how the call goes. We're always here to lend a helping hand. Have a wonderful day! 

I contacted the support team and it was suggested that I void the duplicate deposit. I did this which resulted in a duplicate deposit showing up in Record Deposits (the deposit had already been made and is recorded in my Financial accounts). So I voided the sales receipt to resolve this issue but then still had the Undeposited Funds imbalance issue. I contacted a consultant who tried to resolve the problems and although they were able to resolve the issues with undeposited funds (it is now balanced). They also ended up with a situation where Record Deposits is showing that a deposit needs to be made which is incorrect since the deposit was made previously. How can I eliminate the deposit from Record Deposits without depositing it (if I do my Financial accounts will be off by the amount of the deposit)?