Customer account balances and credit memos

Sharmonet57 · ‎August 22, 2023

I am new to QuickBooks Online and still am unfamiliar with how things work. I have a customer with three sub-customers. I invoiced Sub-customer One two separate invoices for $2600.00 and $350.00. I invoiced Sub-customers Two and Three separate invoices for $350.00 each. Parent Customer paid $3125.00 through the online payment feature which covered the two invoices for Sub-Customer One and left a credit memo of $175.00 on Sub-customer One's account. Parent Customer then made another payment by check which covered Sub-customer Two's entire $350.00 invoice and $175.00 of Sub-customer Three's $350.00 invoice. Per Quick Book's Help section, I created a Journal Entry debiting Sub-customer One and crediting Sub-Customer Three for the $175.00. When I look at the Parent Customer's profile totals, everything is correct. Sub-customer One and Sub-customer Two both have correct info on their individual profiles. However, Sub-customer three is still showing an unpaid, overdue balance of $175.00. What have I missed?

JaeAnnC · ‎August 22, 2023

We're happy to see you in the Community space, @Sharmonet57. Let me help you overcome this challenge to resolve the overdue balance showing in sub-customer three's account in QuickBooks Online (QBO).

After creating a journal entry for the credit memo, we'll need to apply it to an invoice to mark it as paid. To do that:

Go to + New and click Receive Payment.
Select sub-customer three's name in the Customer dropdown.
Put a checkmark beside the invoice showing as overdue.
The journal entry you created will show under the Credits section. Select it to apply to the invoice.
Click Save and Close.

Furthermore, you can set up your QBO to apply credits automatically. Doing so can save you time and prevent errors in recording transactions. To do that, please refer to Step 1 in this article: Create and apply credit memos or delayed credits in QuickBooks Online.

Keep me updated on your future concerns about applying credit memos by leaving a reply below. I'll chime in right away to assist you further. Stay safe!

View solution in original post

JaeAnnC · ‎August 22, 2023

We're happy to see you in the Community space, @Sharmonet57. Let me help you overcome this challenge to resolve the overdue balance showing in sub-customer three's account in QuickBooks Online (QBO).

After creating a journal entry for the credit memo, we'll need to apply it to an invoice to mark it as paid. To do that:

Go to + New and click Receive Payment.
Select sub-customer three's name in the Customer dropdown.
Put a checkmark beside the invoice showing as overdue.
The journal entry you created will show under the Credits section. Select it to apply to the invoice.
Click Save and Close.

Furthermore, you can set up your QBO to apply credits automatically. Doing so can save you time and prevent errors in recording transactions. To do that, please refer to Step 1 in this article: Create and apply credit memos or delayed credits in QuickBooks Online.

Keep me updated on your future concerns about applying credit memos by leaving a reply below. I'll chime in right away to assist you further. Stay safe!

Sharmonet57 · ‎August 22, 2023

Thank you so much for your help!

jenop2 · ‎August 22, 2023

Hi there, Sharmonet57.

Glad to hear that we're able to provide the help that you need.

Please don't hesitate to reach out to us again if you need anything else.

Topics

Training

Community

Resources

Customer account balances and credit memos