Transferring credits from one account to another in QBD

Jan_P · ‎June 07, 2022

I have a customer who has overpaid on several invoices and now has credits. It's a grocery chain with several stores (accounts). Since it's all the same company I would like to move the credits from one account to pay off open invoices to another account. What is the best way to do this? Thank you in advance!

LeizylM · ‎June 07, 2022

Hi there, Jan_P.

I'd be happy to help you transfer credits to pay off the open invoices to another account in QuickBooks Desktop.

To move the credit from one account to pay off open invoices to another account, you must first create a journal entry and then apply for the credit.

First, you'll need to follow these steps to create a journal entry for the transfer:

Go to the Company menu.
Select Make General Journal Entries.
Fill in all the necessary information. Make sure your debits equal your credits when you’re done.
Click Save & Close or Save & New.

Next, you'll have to apply for the credit by following these steps:

Go to the Customers menu and click Receive Payments.
Select the customer's name.
A list of open invoices will show which we can select and which ones we'll apply for the credits.
Check the invoice and click the Apply Credits option from the menu.
Click the Credits tab.
Check all applicable credits.
Click Save and Close.

If you have any other issues about invoice payments in QBDT, I suggest you keep this article for reference: Resolve common issues when applying a payment towards an invoice.

With these steps, you're able to apply and record your customer payment correctly. Please know that you're always welcome to reply anytime if you have other questions. I'll be around to help. Thanks for visiting us today and have a good one.

View solution in original post

LeizylM · ‎June 07, 2022

Hi there, Jan_P.

I'd be happy to help you transfer credits to pay off the open invoices to another account in QuickBooks Desktop.

To move the credit from one account to pay off open invoices to another account, you must first create a journal entry and then apply for the credit.

First, you'll need to follow these steps to create a journal entry for the transfer:

Go to the Company menu.
Select Make General Journal Entries.
Fill in all the necessary information. Make sure your debits equal your credits when you’re done.
Click Save & Close or Save & New.

Next, you'll have to apply for the credit by following these steps:

Go to the Customers menu and click Receive Payments.
Select the customer's name.
A list of open invoices will show which we can select and which ones we'll apply for the credits.
Check the invoice and click the Apply Credits option from the menu.
Click the Credits tab.
Check all applicable credits.
Click Save and Close.

If you have any other issues about invoice payments in QBDT, I suggest you keep this article for reference: Resolve common issues when applying a payment towards an invoice.

With these steps, you're able to apply and record your customer payment correctly. Please know that you're always welcome to reply anytime if you have other questions. I'll be around to help. Thanks for visiting us today and have a good one.

olen · ‎October 08, 2024

You say: Fill in the necessary information. What is "the necessray information"?

JaeAnnC · ‎October 08, 2024

I'll share a clearer breakdown of what necessary information you need to enter when creating a journal entry in QuickBooks Desktop (QBDT), @olen.

The necessary information mentioned by my previous colleague refers to the required fields for entering a journal entry. This includes the Date field, along with the Account, Debit and Credit columns. If you select Accounts Receivable under the Account column, you'll also be prompted to enter a Name.

The other fields, including Entry No., Memo, Billable, and Class, are optional. However, you can use them as unique identifiers for tracking journal entries.

To ensure proper accounts are used, I suggest consulting with your accountant. If you're not associated with one, feel free to visit our ProAdvisor page to look for an accounting professional near your area.

Additionally, you can create memorized transactions in QBDT to get a reminder every time they're due.

Please know you can always rely on the Community team for any clarifications about the process of transferring credits from one account to another in QBDT. We'll ensure to address your concerns promptly. Have a nice day ahead.

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Transferring credits from one account to another in QBD