Convert an Invoice to Credit Memo

We are unable to convert invoices to credit memos, bijan314.

You'll want to delete the said invoice and create a separate credit memo. Make sure you take note of the invoice details before deleting it.

1. Open the invoice.

2. Click More at the bottom of the Invoice page and select Void or Delete.

3. Click Yes to confirm the action.

4. Create a credit memo.

Meanwhile, we can use the same invoice number for the credit memo by turning on the Custom transaction number function. Here's how:

1. Click the Gear icon in the upper-right corner and select Account and Settings.

2. Select the Sales tab and go to the Sales form content section.

3. Mark the Custom transaction numbers box.

4. Click Save and Done.

Upon saving the credit memo, there will be a prompt message that you're already using the transaction number twice or many times. You can choose Yes to confirm the action.

I'll be right here if you have further questions about this.

Open the invoice. At the top is Credit Memo "Refund/Credit" icon is right there.

"I want to sue the same invoice number but as credit memo, is it possible?"

If you want to do that, this will be a Manual process.

Never Delete the invoice; that is the original sale and this is bad guidance.

I don't think it is a good accounting practice to change  an invoice  into credit memo or delete an invoice .  my recommendation is let the invoice be there and create a credit memo against that invoice; which is the usual treatment of invoices.

I don' think that it is a good accounting practice to  change an invoice into Credit memo. I will recommend let the invoice be there but prepare a credit memo with same information against it. 

Is there a setting that's off if I do not have a Refund/Credit icon? It should be standard for any invoice, so it ties back to the invoice. 

Welcome to the thread, @Rina13.

The Refund/Credit icon you're referring to on the invoice is only available if you're using QuickBooks Desktop (QBDT). So if you're using QuickBooks Online (QBO), it's not an option.

If you wanted to create a credit memo in QBO, here's what you'll need to do:

1. In the left menu, click the + New button.
2. Select Credit memo.
3. In the Customer dropdown, select the customer's name.
4. Enter the credit memo details.
5. Select Save and close.

Once done, you can manually apply a credit memo to an invoice. For more details, check out this article: Create and apply credit memos or delayed credits in QuickBooks Online.

To help you manage your sales in the future, visit our Community help articles: Invoices and payments.

If you have any other questions when using QuickBooks, you can always add them to your reply. I'll be more than happy to take care of them for you. Have a dazzling day ahead!

I knew how to create a credit memo. It's unfortunate that the online version does not have the refund/credit functionality. 

Thank you for your response. I appreciate the information.

It's unfortunate that the online version does not have the refund/credit memo option. One would think it would be more robust than the desktop version as it would be wonderful to be able to track credit memos from an invoice.

Thank you for your assistance.

This makes crediting an invoice time consuming, could the developers please look at being able to select an invoice to create a credit memo, it is not good practice to delete invoices. In the interim, I'll manually create them, but computing is supposed to make our lives easier.

We're always finding ways to make your time with QuickBooks easier and more fun, USASwanny.

The ability to convert an invoice into a credit memo would save time when completing a task to your QuickBooks account. Consider submitting your ideas to our Product Development Team. They review submitted feedback for future updates and use these suggestions to create product enhancements. 

Here's how:

1. Go to the Gear icon at the top.
2. Select Feedback.
3. Enter your comments or product suggestions. Then select Next to submit feedback.

I'll leave you with this article if you want to learn more about Credit Memo in QuickBooks Online: Enter and apply credit memos and delayed credits in QuickBooks Online.

In addition, you can acquire more help with sales and customer-related advice by visiting our QuickBooks Help page in the future.

I've got your back if you need more with managing invoices in QuickBooks. Stay safe!

It would be extremely helpful to have the option in Quickbooks Online to open the invoice and then just hit a button to create a refund/credit memo based on that invoice... like there is in Quickbooks Desktop.  WHY ARE THERE SO MANY CONVENIENT FUNCTIONS AVAILABLE IN THE DESKTOP VERSION THAT ARE NOT AVAILABLE IN THE ONLINE VERSION.  THEY SHOULD BE THE SAME.

I can see that your business has a definite need, R West. Let me ensure you can deliver your insights directly to our product engineers so they can include your suggestions in future product updates.

Currently, the ability to convert customer invoices into refunds/credit memos is unavailable in the program. Please know that our software engineers regularly review customer feedback to enhance and provide the best possible experience. Your ideas help shape the direction of our product, and we strive to meet the evolving needs of businesses.

To help us achieve your goal, you can also send this idea directly to our product developers. They'll consider implementing this option and assist you with your business demands in this manner. Here's how to send feedback:
 

1. Go to the Gear icon and select Feedback.
2. Enter your product suggestions or feedback.
3. Then, click Next to submit feedback.

You can also visit our QuickBooks Online Blog to be updated about our latest happenings. Through this, you're able to get the newest news, features, and updates about QuickBooks Online and what our Product Care Team is working on.

Let me know anytime in this forum if you have additional questions about customer invoices. I'll be around to help. Keep safe.