I created a credit memo for a refund, then issued a check for the refund amount, but now the credit memo is showing up as a deposit in the checking account register.

brwilliam01 · ‎April 10, 2019

I refunded a refund of a portion of fees from a client using a credit memo using accounts payable and issued a check from our checking account. The credit memo and check zero out the client's account, but the credit memo is now mistakenly showing up as a deposit in the checking account register along with the refund check. How do I get rid of this without deleting the credit memo, which will then result in a "to be paid" balance in the client's account?

JaneD · ‎April 10, 2019

Welcome to the Community, brwilliam01.

Let me share some information about creating a credit memo for customers in QuickBooks Desktop.

When you issue a credit memo to a customer, you should enter the item used on the invoice. An Accounts Receivable should be associated for customers because you're recording what's owed to your business.

To resolve this, use an item on the credit memo and Accounts Receivable for the refund check.

For more in-depth information, you can also check this great article: Record a credit memo or refund in QuickBooks Desktop.

That should do it. From there, the refund check should show as a payment on the checking account.

Keep me posted if you have further questions about the process. I'm always here to help. Have a wonderful day.

View solution in original post

JaneD · ‎April 10, 2019

Welcome to the Community, brwilliam01.

Let me share some information about creating a credit memo for customers in QuickBooks Desktop.

When you issue a credit memo to a customer, you should enter the item used on the invoice. An Accounts Receivable should be associated for customers because you're recording what's owed to your business.

To resolve this, use an item on the credit memo and Accounts Receivable for the refund check.

For more in-depth information, you can also check this great article: Record a credit memo or refund in QuickBooks Desktop.

That should do it. From there, the refund check should show as a payment on the checking account.

Keep me posted if you have further questions about the process. I'm always here to help. Have a wonderful day.

brwilliam01 · ‎April 11, 2019

JaneD,

Thanks so much!

I finally got the credit memo to get out of the deposit side of the check register by changing the Item to Escrow, which is what we call the refundable adoption post placement deposit. I had already read the article multiple times, but I finally understood the need for having the correct item listed.

:-)

Barry

brwilliam01 · ‎April 11, 2019

Hi JaneD,

I had read the article several times before seeing your reply to my post, without catching the point about making sure to use the correct item. In my case, this is a refundable deposit for post placement reports. Once I put that in as the item, the CM disappeared from the deposit column of my checking account register.

Many thanks!

Barry

Alessandra_B · ‎April 11, 2019

Greetings, @brwilliam01.

We always want to make sure that we resolve your concerns and get you back to business.

I'm glad that my colleague @JaneD was able to help you with your credit memo.

Please know that you can post again in the Community if you need help with anything else. Have a good one!

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I created a credit memo for a refund, then issued a check for the refund amount, but now the credit memo is showing up as a deposit in the checking account register.