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Level 2

Discount

Hi,

I  need to issue on account credit for a client that we will be paying with our product, meaning they provided a service to us in return we will issue a sales credit.  When issuing this credit I did a gift certificate of 7000.00 but in balance sheet reflect as negative.  Is this correct?

I credit AR and debit gift certificate on the balance sheet.  

 

Thanks for the help!

2 Comments 2
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QuickBooks Team

Discount

Hi there, @ Patsypat20.

 

You're on the right track in recording the gift certificate to your client. In the balance sheet report, when you issue a credit, it set towards the existing balance on a buyer's account to reduce the total.

 

The credit will result in the following entry in accounting records. In other words, the credit memo reduced Seller's net sales and its accounts receivable.

 

As I replicated what you have worked on, I have this screenshot shows the negative amount in the Balance Sheet.

 

sc sample.PNG

 

For your reference, you can follow the detailed steps on to remove credit for your customers: Remove or unapply a credit from an invoice or bill. 

 

Don't hesitate to leave a comment below if you have additional questions about the credit memo. I'd be happy to answer them for you. Have a great day. 

Highlighted
Level 2

Discount

Thank you so much for your help!!

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