How can I record a customer credit memo that does not restock the item?

Hello there, @thomastonmilk.

When creating a credit memo in QuickBooks, it affects your items. QuickBooks will record them in your Profit and Loss report and Sales report.

With that, in QuickBooks, there's no direct way to create a credit memo that will not restock the item.

 You can create journal entries to keep things you want. Still, you can consult other accountants for further assistance and ensure you'll be using appropriate accounts in the process. They might also share with you another way on how to handle them accordingly.

Here's how:

1. Go to the Company menu.
2. Select Make General Journal Entries.
3. Fill out the fields to create your journal entry. Make sure your debits equal your credits.
4. Select Save or Save & Close.

You'll want to check this article for more details and tips: Learn how to record journal entries in QuickBooks Desktop.

If you notice a discrepancy between the Profit & Loss and a Sales reports, you can visit this article to learn more on how you can troubleshoot them: Profit and Loss report does not match a sales report.

Visit again if you have further concerns. I'm always here whenever you need help. Stay safe, thomastonmilk.

Thank you for your response but this solution will not work for me.  We have over $16,000 in daily sales with multiple items returned almost daily.  It would take me forever to do journal entries for each item on a credit memo.  I feel Quickbooks should have made adjustments in this software for that situation.  I'm sure I'm not the only wholesale or retail business that sells consumable products that cannot be returned to stock.  I'm using 2019 Desktop, hopefully they have remedied this in 2022.

@SarahannC 

RE: With that, in QuickBooks, there's no direct way to create a credit memo that will not restock the item.

Of course there is, which @Rainflurry came up with - it seems without any effort whatsoever.

I'm not sure I agree with "without an effort" because I tried it and creating an non-inventory item "returns or spoilage" did not work for me plus we have over 1000 items. Other suggestions are welcomed.

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@BigRedConsulting wrote:

@SarahannC 

RE: With that, in QuickBooks, there's no direct way to create a credit memo that will not restock the item.

 

Of course there is, which @Rainflurry came up with - it seems without any effort whatsoever.

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@thomastonmilk 

What didn't work about it?  When I set it up and issued a credit memo, it booked an expense (as opposed to restocking the item) and corresponding customer credit.  Isn't that what you're trying to accomplish? 

Hello Rainflurry,

I have reviewed the solution you’ve shared and it's correct and accurate. Thank you for sharing your inputs to help address the issue.

We love to see members supporting one another! Have a great day.