How to move multiple Credit Memos from AR to Bank (Paid) - QBD Premier 2020

viperdiver · ‎February 05, 2020

Hello,

Here's the scenario, simplified, but goes for what I'm after:

1 - I have 20 customer who places 2 orders each; on each order they paid $5 shipping

2 - I combined shipping, so I created a credit memo for each customer for $5 (a total of 20 memos returning a total of $100)

3 - I now have an AR balance of -$100, and 20 lines in the accounts receivable register

I can clear out one credit memo at a time, by going into the credit memo, and using the "Use credit to give refund" which will then debit the bank account and clear our the credit memo and reduce the AR by $5

However, I want to clear out all 20 at once. How do I do that? I don't actually use quickbooks for banking, so I don't need to link these to checks or anything - I just want to clear out the accounts receivable.

Thanks in advance!

MaryGraceS · ‎February 06, 2020

Hello there, @viperdiver.

Let me share some clarifications about moving multiple Credit Memos from A/R to the bank.

Currently, the option to auto-populate the line entries in the journal entry (JE) or enter a specific amount from A/R and have the system automatically credit all the customers are unavailable. When you create a JE, you need to enter the details for every customer to clear the A/R account. Also, you can't use multiple A/R accounts in a single JE.

If you create the same JE regularly, use Memorize to save it as a template for future use. This way, you don't need to enter the 100 line entries manually every month.

To answer your second question, you can enter your bank account since it'll offset the amount when you create a JE. However, it'd be best to create a clearing account to avoid confusion when you track your financial reports.

For additional information, you can check the following articles about different Accounts Receivable workflow processes and how to record journal entries:

If I can be of any assistance, please don't hesitate to leave a comment down below. I'll be here to help you out. Take care.

View solution in original post

Emily M · ‎February 05, 2020

Hello there, @viperdiver.

I’m here to help you with moving multiple credit memos from an accounts receivable to bank paid. You can use a clearing account to move the credit memo from one account to under the same customer.

Here’s how to set up a clearing account:

From the Lists menu, choose Chart of Accounts.
Click CTRL + N to create a new account.
Pick Bank. Take note that while you can use other types of account.
Press Continue.
Enter Clearing Account, Barter Account, or Wash Account in the Account Name field.
Leave the Opening Balance box blank.
Select Save & Close.

You’ll then need to use the clearing account.

Let me guide you how:

Create journal entry.
Choose the A/R account from which you're moving the credit memo.
Add the clearing account, the amount of the credit memo, and any other details.
Hit Save.
Create a second journal entry.
Add the clearing and the second A/R account.
Add any other details and press Save.
Link the journal entries together through the Receive Payment window.

For further information about setting up a clearing account, check out this link.

If you have other questions, drop me a comment and I’ll be happy to help. Bye for now.

viperdiver · ‎February 06, 2020

Emily,

Thank you for the informed response. However, I am wondering if there is an easier way. Let me make my scenario a little different.

Let's say I have a credit memo for $5 for Jon, Joe, Kate, and Jane.

Using your method, I would have to create a journal entry with 5 lines:

$5 from A/R, customer Jon

$5 from A/R, customer Joe

$5 from A/R, customer Kate

$5 from A/R, customer Jane

$20 to Clearing Account

Is there a way to have ALL my A/R lines auto-populate into the journal entry, or do I need to manually enter every on as in the example above? I have ~100 and expect this monthly so I would rather not have to manually enter 100-line journal entries every month.

OR, is there a way to enter just $20 from A/R and have the system automatically credit all the customers?

SECOND, is there a reason I wouldn't just use my bank account instead of a clearing account and not need to link journal entries?

MaryGraceS · ‎February 06, 2020

Hello there, @viperdiver.

Let me share some clarifications about moving multiple Credit Memos from A/R to the bank.

Currently, the option to auto-populate the line entries in the journal entry (JE) or enter a specific amount from A/R and have the system automatically credit all the customers are unavailable. When you create a JE, you need to enter the details for every customer to clear the A/R account. Also, you can't use multiple A/R accounts in a single JE.

If you create the same JE regularly, use Memorize to save it as a template for future use. This way, you don't need to enter the 100 line entries manually every month.

To answer your second question, you can enter your bank account since it'll offset the amount when you create a JE. However, it'd be best to create a clearing account to avoid confusion when you track your financial reports.

For additional information, you can check the following articles about different Accounts Receivable workflow processes and how to record journal entries:

If I can be of any assistance, please don't hesitate to leave a comment down below. I'll be here to help you out. Take care.

viperdiver · ‎February 06, 2020

Thanks much! Unfortunately the customers (and hence the ARs) change so while ist is ~100 a month, it changes who it is against. Otherwise, your answer is understandable, and thanks for the help!

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How to move multiple Credit Memos from AR to Bank (Paid) - QBD Premier 2020