Providing Credit to a Customer

Hello, @jtnj.

The reason you cannot save the invoice is that it includes the $300 credit. However, don't worry—I am here to assist you in properly recording these transactions.

I recommend entering the $100 credit card charge on your invoice, then you'll need to receive payment so that the $300 credit will apply to the invoice. Here's how:

1. Go to the Customers menu and select Receive payments.
2. Click the Discounts And Credits above.
3. Then check the existing credit.
4. Then click Done.

In case you need steps on how to run different reports in QBDT to give you a snapshot of your business or track your spending entries, you can read this article: Understand reports.

If you have further questions about recording transactions in QBDT you can comment below, and we'll be right here to help you any time.

@jtnj 

Are you trying to apply the $300 credit to the $500 due on the outstanding invoice?  If so, then you can't use a negative billable expense, you need to create a A/R credit for the customer.  The $300 vendor credit that you marked as billable is most likely listed as 'Billable Expense Income' on your P&L.  Confirm that.  If that's the case, create a journal entry that moves that $300 to an A/R credit for your customer - debit Billable Expense Income and credit A/R for that customer for $300.  You should now have a credit that can be applied to any outstanding customer invoices.   

Ariell,

I've entered the $100 in the Invoice. But when I go to the Customer Menu and Receive Payments and enter that customer, there is no Credit Shown for them when clicking on Discounts and Credits, then Credits. I double checked - that credit is still in the Enter Credit Card Charges section.

I have some details about as to why credit isn't showing on your end, jtnj. 

When recording credit card charges in QuickBooks, you put the money you owe in the credit card account (Other Current Liability) and won't apply to your customer's invoice since this is a vendor type of transaction. You can create a credit memo instead. This ensures that you'll be able to see the amount as credits once you receive the payment.

But before that, you'll have to delete the Credit Card Charges first that you've created in the Banking page. To do so, follow the steps below:

1. Go to the Chart of Accounts from the List menu. 
2. Locate for the account that contains the transactions, then double-click to open.
3. Scroll down to the transaction on the account screen. Right-click, then tap on Delete Credit Card Charge.
4. Choose OK to confirm the action
5. Repeat the steps for each transaction you want to delete.

To create a credit memo or process refund for your customers, follow the steps outlined below:

1. From the Customers menu, select Create Credit Memos/Refunds.
2. From the Customer:Job dropdown, select your customer.
3. Enter the items you're giving a credit for, then click Save & Close.

Once done, receive the payment so it will apply to your invoice. Credits will show now in your end. Here's how:

1. Go to the Customers menu and select Receive payments.
2. Click the Discounts And Credits above.
3. Choose the credit.
4. Click Done.

To give you more details on how to record the refund, check out this article for more information: Give Your Customer A Credit or Refund in QuickBooks Desktop for Windows.

Furthermore, QuickBooks provides several reports that cater to your business needs. You can customize them to ensure you'll get the right data for your business. I've added this article for detailed steps: Customize Reports in QuickBooks Desktop.

You can always get back to us if you have any other concerns about invoices and refunds. We're always right here to help you.

Thank you. But how do I enter the Credit Memo? It wants and Item, otherwise it won't let me enter an amount.

Do I create a new Item called Refund?

I did click on the link about Creating... but encountered above.

I created a new Item called Credit Card Refund and put it under Reimbursable Expenses.

Then I was able to apply the credit to the invoice and now the Custome Balance reflects the correct amount.

Thank you!