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mbell19
Level 3

How to use products & services categories

I am trying to issue a credit memo to write off uncollected payments. I've created the bad debt expense in my chart of accounts and I'm ready to write the credit memo using the bad debt category in my products and services list. I typically don't use products and services on invoices so that option is not showing up when I create a new credit memo. How can I make that appear so that the amount is shown in bad debt expense? 

 

I tried these instructions but there is no pencil icon on the screen as it says to select after clicking the gear icon, then products and services .

Select Sales, then go to the Products and Services section and select the pencil icon.

Solved
Best answer April 24, 2019

Best Answers
FritzF
Moderator

How to use products & services categories

Welcome back to the Community, @mbell19.

 

I can share some information about writing off debt in QuickBooks Online (QBO).

 

First of all, thanks for providing the detailed steps you've done to get this working. You're already on the right track! After creating an expense account, the next step is to make a non-product item to identify the bad debt. Here's how:

 

1. Go back to the Products and Services page and click New instead.

214.PNG
2. Select Non-inventory, then enter Bad Dept in the Name field.
3. In the Income account field, select the Bad Debt expense you created.
4. Uncheck the Is taxable box, then Save and close.

215.PNG

 

Once done, you can now create a credit memo. Here's how:

 

1. Go to the Plus icon and pick Credit Memo under Customers column.
2. Select a customer on the Customer drop-down.
3. In the Product/Service field, select the Bad Debt item, then enter the unpaid Amount as positive.
4. Hit Save and close.

216.PNG

 

After that, apply the credit memo to write off the bad debt. Here's how:

 

1. Go back to the Plus icon, then pick Receive Payment under Customers.
2. Select a customer, then choose the invoice to write off in the Outstanding Transactions section.
3. Under Credits, select the credit memo, then make sure that Amount Received is zero.
4. Hit Save and close.

 

I'm also including an article for additional information: How to write off bad debt.

 

That should do it. Let me know how it goes by leaving a comment. I'll be here if you have any additional questions or if you need anything else. Have a great day.

View solution in original post

FritzF
Moderator

How to use products & services categories

Hi again, @mbell19.

 

I appreciate you getting back to me and for providing a clarification. 

 

A possible reason why it's not showing is that you might haven't turned on the Products and Services on your company settings. If that's the case, here's how to turn it on:

 

1. Go to the Gear icon at the top and pick Account and Settings under Your Company column.
2. Select the Sales menu at the left, then click the Pencil icon on the Products and Services section.

217.PNG
3. Check the box beside Show Product/Service column on sales forms, then Save and Done.

218.PNG

 

Once done, you should be able to see the Products and Services category in the Credit Memo

 

Please let me know how it goes or if I can be of further assistance. I'm only a few clicks away if you have additional questions. Take care always.

View solution in original post

7 Comments
FritzF
Moderator

How to use products & services categories

Welcome back to the Community, @mbell19.

 

I can share some information about writing off debt in QuickBooks Online (QBO).

 

First of all, thanks for providing the detailed steps you've done to get this working. You're already on the right track! After creating an expense account, the next step is to make a non-product item to identify the bad debt. Here's how:

 

1. Go back to the Products and Services page and click New instead.

214.PNG
2. Select Non-inventory, then enter Bad Dept in the Name field.
3. In the Income account field, select the Bad Debt expense you created.
4. Uncheck the Is taxable box, then Save and close.

215.PNG

 

Once done, you can now create a credit memo. Here's how:

 

1. Go to the Plus icon and pick Credit Memo under Customers column.
2. Select a customer on the Customer drop-down.
3. In the Product/Service field, select the Bad Debt item, then enter the unpaid Amount as positive.
4. Hit Save and close.

216.PNG

 

After that, apply the credit memo to write off the bad debt. Here's how:

 

1. Go back to the Plus icon, then pick Receive Payment under Customers.
2. Select a customer, then choose the invoice to write off in the Outstanding Transactions section.
3. Under Credits, select the credit memo, then make sure that Amount Received is zero.
4. Hit Save and close.

 

I'm also including an article for additional information: How to write off bad debt.

 

That should do it. Let me know how it goes by leaving a comment. I'll be here if you have any additional questions or if you need anything else. Have a great day.

View solution in original post

mbell19
Level 3

How to use products & services categories

Thanks, but as I stated in my original message, I have already created the non-inventory item under products and services using the method you showed. My problem is that when I go to the credit memo screen, I do not have a category showing for product/service, therefore I cannot chose the bad debt non-inventory item that I created.  I do not know how to make this show up on the credit memo screen.

FritzF
Moderator

How to use products & services categories

Hi again, @mbell19.

 

I appreciate you getting back to me and for providing a clarification. 

 

A possible reason why it's not showing is that you might haven't turned on the Products and Services on your company settings. If that's the case, here's how to turn it on:

 

1. Go to the Gear icon at the top and pick Account and Settings under Your Company column.
2. Select the Sales menu at the left, then click the Pencil icon on the Products and Services section.

217.PNG
3. Check the box beside Show Product/Service column on sales forms, then Save and Done.

218.PNG

 

Once done, you should be able to see the Products and Services category in the Credit Memo

 

Please let me know how it goes or if I can be of further assistance. I'm only a few clicks away if you have additional questions. Take care always.

View solution in original post

mbell19
Level 3

How to use products & services categories

Thank you, that is the information I was looking for.

FritzF
Moderator

How to use products & services categories

You're most welcome, @mbell19.

 

It made my day knowing that I was able to help you with this! :D

 

Feel free to post again in the Community should need anything else. Cheering you to continued success!

ChrG
Level 1

How to use products & services categories

Hi Mr Admin,

 

      When I go to make estimates, I click products and services for my line item, then I write what I want for that column. I later click add product or services it opens up a menu to the right. How can I DELETE that.

 

Thanks

Rea_M
QuickBooks Team

How to use products & services categories

Welcome to the Community, @ChrG.

 

I'm here to ensure you're able to delete the add product or services menu that opens up when creating your estimate in QuickBooks Online (QBO). This way, you can keep your account up to date and manage your products accordingly.

 

Based on your scenario above, it seems that the name of the product or service you write isn't yet added to your list. That's why the Products/Service information page opens up after clicking the Add option.

 

If you don't want to proceed in adding the item, just click the Delete (X) icon at the top of the page.

20.PNG

 

If you want to add it to your list of products and services, I can guide you on what steps you need to take.

  1. From the opened Product/Service information page, choose the product type you want to add.
  2. Enter the Name and all other necessary details.
  3. Click Save and close.

I've attached screenshots below for your reference.

21.PNG 22.PNG

 

After adding, you'll be routed back to the Estimate window. From there, you can continue creating and sending it to your customer.

 

To check the status of the estimate you've created, you can pull up the Estimates by Customer report. It'll let you view them by customer and check whether they're accepted or invoiced. Just visit the Sales and customers section in the Reports menu. Then, you can customize it to focus on the details that matters most to you. For the detailed steps, kindly refer to this article: Customize reports in QuickBooks Online.

 

Please let me know if you have other concerns. I'm just around to help.

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