cancel
Showing results for 
Search instead for 
Did you mean: 
Not applicable

How do I apply credit to customer's invoice

How do I apply a credit memo to a customer's invoice

Solved
Best answer 10-15-2018

Accepted Solutions
QuickBooks Team

You came to the right place crobertson, It's easy to appl...

You came to the right place crobertson,

It's easy to apply a credit memo to a customer's invoice, let me show you.

Have you created the credit memo in QuickBooks? If not, then you can create a credit memo first, and then apply it later on to the customer's invoice.

Here's how you can create the credit memo:

  1. Click the Plus (+) icon.
  2. Select Credit Memo.
  3. Choose the customer name.
  4. Enter the Credit Memo Date.
  5. Fill in the Service Date, Product/Service, and Amount fields. You may also fill in any other fields (Description, QTY, Rate) if necessary.
  6. Click Save and close.

However, if you already created the credit memo, you may proceed in applying it to the invoice.

Here's how:

  1. Click Sales in the left navigation bar.
  2. Click the Customers tab.
  3. Locate and click the customer's name.
  4. Locate the invoice you want to apply the credit to and click Receive payment.
  5. In the Receive Payment window, enter the Payment date, Payment method, Reference no. (if necessary) and the Deposit to account.
  6. In the Outstanding Transactions section, make sure that the correct invoice is selected.
  7. In the Credits section, make sure the correct credit memo is selected.
  8. Click Save and close.

You can also check this article for more information:

There you go! You will be all set in applying the credit to your customer's invoice after following these steps.

Thanks for dropping by crobertson! Feel free to drop by anytime, I'm here if you have further questions.

28 Comments
Not applicable

what screen is the Plus (+) icon located?

what screen is the Plus (+) icon located?
QuickBooks Team

Hi @pam I'll help you find the plus icon. The plus or c...

Hi @pam

I'll help you find the plus icon.

The plus or create icon is located at the upper right corner of your QuickBooks Online screen. I've attached a new screenshot below to help you find it.

Keep me posted if you need more help finding the plus or create icon in QuickBooks.
Not applicable

where is the screen shot?  I have Quick Books Desk top!

where is the screen shot?  I have Quick Books Desk top!
QuickBooks Team

Hello @pam , Thanks for clearing this up and letting me...

Hello @pam ,

Thanks for clearing this up and letting me know what QuickBooks version you're using.

For QuickBooks Desktop, the process to apply credit to a customer's invoice is a little different. Allow me to guide you through the steps:

1. Click Customers in the top menu bar and select Receive Payments.
2. Click the Received From drop-down arrow and select the customer's name.
    Note: You will see the available credit amount at the bottom of the window.
3. Select an invoice and click the Discount & Credits button
4. Select the correct credit you need to apply from the window and adjust the amount, if needed, in the Amount to Use column.
5. Click Done.
6. Click Save & Close.

Let me know how this works out for you. I'm here if you need more help applying the credit to your customer invoice.
QuickBooks Team

You came to the right place crobertson, It's easy to appl...

You came to the right place crobertson,

It's easy to apply a credit memo to a customer's invoice, let me show you.

Have you created the credit memo in QuickBooks? If not, then you can create a credit memo first, and then apply it later on to the customer's invoice.

Here's how you can create the credit memo:

  1. Click the Plus (+) icon.
  2. Select Credit Memo.
  3. Choose the customer name.
  4. Enter the Credit Memo Date.
  5. Fill in the Service Date, Product/Service, and Amount fields. You may also fill in any other fields (Description, QTY, Rate) if necessary.
  6. Click Save and close.

However, if you already created the credit memo, you may proceed in applying it to the invoice.

Here's how:

  1. Click Sales in the left navigation bar.
  2. Click the Customers tab.
  3. Locate and click the customer's name.
  4. Locate the invoice you want to apply the credit to and click Receive payment.
  5. In the Receive Payment window, enter the Payment date, Payment method, Reference no. (if necessary) and the Deposit to account.
  6. In the Outstanding Transactions section, make sure that the correct invoice is selected.
  7. In the Credits section, make sure the correct credit memo is selected.
  8. Click Save and close.

You can also check this article for more information:

There you go! You will be all set in applying the credit to your customer's invoice after following these steps.

Thanks for dropping by crobertson! Feel free to drop by anytime, I'm here if you have further questions.

Active Member

Re:Apply delay credit to invoic

Hi:

We use to be seeing the credit showing on the button when we apply the delay credit to customer . It use to be there.  So when we do received payment. We can apply to correct credit.

Established Member

Re: Hello @pam , Thanks for clearing this up and letting me...

I have QB Desktop Pro 2019 ( just upgraded from 2016 lst month).  I have always applied credits on customers on the 1st day of the month but today it won't update it.  I go thru the process but although it seems to be processed it isn't.

 

QuickBooks Team

Re: Hello @pam , Thanks for clearing this up and letting me...

Hi there, @town.

 

Thanks for giving me the opportunity to help you. Let's work together to resolve your credits application issue. 

 

To begin, let's try running the Verify and Rebuild Data in QuickBooks Desktop. It's one of the solutions to try to resolve data issues in the company file.

 

Here's how to run a data checkup:

  1. Click the File menu.
  2. Scroll down to Utilities.
  3. Click Verify Data.

If there are errors, you'll need to rebuild the data. Follow the same steps above, except you'll need to select Rebuild Data for step 3. 

 

After performing the recommended resolution, try applying credits to your customer once again.

 

Keep me posted how it goes or if you need additional help. I'll keep an eye to your reply. I'd like to make sure this is taken care of.

Established Member

Re: Hello @pam , Thanks for clearing this up and letting me...

Did all the above and rebuilt data and still cannot post the credit.  What now?

QuickBooks Team

Re: Hello @pam , Thanks for clearing this up and letting me...

Thanks for getting back, town.

 

I appreciate you for taking the time in trying out the steps above. Let's get this straightened out so we can apply credits successfully.

 

Did you happen to receive an error message when trying to apply customer credits in QuickBooks Desktop? If yes, please let me know. This will help me narrow down what may be causing the error.

 

Otherwise, if you're unable to see the credit, it means this has already been applied. Let's open the credit then go to the transaction history to trace down where the credit has been applied.

 

Here's how:

  1. Go to Customers.
  2. Click Customers & Jobs.
  3. Select a customer.
  4. Double-click the transaction from the Transactions tab.

If you're still unable to do this, I recommend getting in touch with our Care Support Team so they can further investigate why you're unable to do so.

Here's how to contact support:

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
  2. Select QuickBooks Desktop.
  3. Select your QuickBooks Desktop version.
  4. Select a topic. 
  5. Click the Get Phone Number button.

If there's anything you need when applying customer credits, please don't hesitate to leave a comment below. I'd be happy to help.

Active Member

Re: How do I apply credit to customer's invoice

stupid function

Established Member

Re: You came to the right place crobertson, It's easy to appl...

I am trying to apply a credit memo I already made. When I open recieve payment Credit Memo is not an option on the drop down list, that says credit card, check, ACH etc. Do I need to add Credit Memo as a way to pay? if not how do I apply?

QuickBooks Team

Re: You came to the right place crobertson, It's easy to appl...

Hi ridgemedia

 

Let's verify if your Credit Memo is set up as automatically apply to your customer's Invoices. If so, once you've created a Credit Memo, it will automatically apply to your customer's Invoice

 

To verify, kindly follow the steps below:

  1. Go to the Gear icon.
  2. Click Account and Settings.
  3. Choose Advanced.
  4. Check if the Automatically apply credits is turned on.

Also, the Cash, Check and Credit Card are only the options of which Payment method you want in receiving payments. The Credit Memo is not an included from options.

 

You'll want to turn off the the Automatically apply credit setting to have an option if you'll apply it to the Invoices or not. Just click the Pencil icon in the Automation section and uncheck the Automatically apply credit

 

You can get back to me if you have additional questions. I'd be glad to help you.

Active Member

Re: You came to the right place crobertson, It's easy to appl...

My credit shows as a payment on the invoice. But, when I try to email or print, it the total due is still the full amount and does not show the credit.

QuickBooks Team

Re: You came to the right place crobertson, It's easy to appl...

Greetings, @Gould.

 

I can provide some information on how credit memo works in QuickBooks Online.

 

One possible reason credit is not showing on the invoice is because it was not applied properly. To fix this, here's how:

  1. Let's re-open the credit memo you've entered.
    1. Review the credit details: Name of the customer, date and amount.
    2. Click Save and Close
  2. Apply the credit memo to the invoice.
    1. Click the Plus Icon.
    2. Choose Receive Payment.
    3. Select the name of the Customer.
    4. Go to the Deposit To account, choose the bank account where you want the transaction payment will be recorded.
    5. Put a check mark on the invoice where the credit will be applied. 
    6. In the Credits sections, select the credit memo you want to apply to your customer's invoice.
    7. Click Save and Close.  

That should do it! Keep in touch with us here in the Community if you have other questions about applying credit memo to your customer's invoice. I’m always here to help.

Community Contributor **

Re: You came to the right place crobertson, It's easy to appl...

Hello

 

I'm using QBO and I'm trying to apply a credit memo to an outstanding invoice. I've been reading the community answers but I just cannot find Discount & Credits button or Credits section. Can someone help?

Highlighted
QuickBooks Team

Re: You came to the right place crobertson, It's easy to appl...

Hi there, CyndyR!

 

The Discounts and Credits section is only available in QuickBooks Desktop.

 

In QuickBooks Online, you can click the Receive Payment button on the Invoice page. Then, select the credit memo to apply as payment to it. You can follow step 2 in juViel's answer to above your question. Here's an article for additional reference: Enter and apply a credit memo or delayed credit.

 

Please don't hesitate to reach out if you have further questions.

Experienced Member

Re: How do I apply credit to customer's invoice

Hi! I have QB Desktop Pro and want to give my customer a sponsorship credit of $100 on their invoice. What is the correct way of doing this?

Please advise.

QuickBooks Team

Re: How do I apply credit to customer's invoice

Hi there, LAH5.

 

If you wish to give your customer a sponsorship credit, then, you just need to create a credit memo and apply it to the invoice created. I'd be glad to help guide you how.

 

First, create a credit memo:

 

  1. Click on Customers at the top menu bar.
  2. Select Create Credit Memos/Refunds.
  3. Fill in the required information.
  4. Click Save and Close.
  5. Select Retain as an available credit under Available Credit.
  6. Click OK.e1 credit memo.PNG

Once completed, create an invoice:

 

  1. Click on Customers.
  2. Select Create Invoices.
  3. Fill in the invoice information.
  4. Click on Apply Credits.
  5. Select Yes under Recording Transaction.e1 invoice1.PNG
  6. Select the credits created under Apply Credits.e1 select the credits 2.PNG
  7. Click Done.
  8. Save the invoice.

To learn more about recording a credit memo, you may check this article: Record a credit memo or refund in QuickBooks Desktop.

 

On the other hand, you can also check this link for your future reference about QuickBooks Desktop: Help articles for QuickBooks Desktop.

 

I'll be always here to help you if you have any other credit memo or invoice questions, I'll be around to help you. Have a good one!

Experienced Member

Re: How do I apply credit to customer's invoice

Thank you! I appreciate the assistance!

Experienced Member

Re: You came to the right place crobertson, It's easy to appl...

cooool! thank your so much for this instruction 

Active Member

Re: You came to the right place crobertson, It's easy to appl...

I have the same question, "How do you apply a Credit Memo to a customer's invoice?", except I'm using QuickBooks 2016 for Mac desktop so none of your descriptions apply to this version of the QB interface or functions. 

QuickBooks Team

Re: You came to the right place crobertson, It's easy to appl...

Hi there, @Rod8.

 

You'll have to click the Receive Payments option first before you can apply the credit to the invoice in your QuickBooks  Desktop Mac. I'll be glad to show you how.

  1. Open the invoice you want apply the credit with.
  2. Click Payments to receive the payment.
  3. Mark the invoice transaction and Apply Existing Credits.
  4. Then click Save.

I've attached an image below for reference. 1.png

 

You can also check this article for further information: Record a Credit Memo or Refund in QuickBooks Desktop.

 

Also, in case you want to learn how to process a credit card payments in QuickBooks Desktop Mac, you can check this article for reference: Process a Credit Card Payment in QuickBooks for Mac.

 

Always feel free to reach out to us if you have other concerns @Rod8. We're always here to help.

Active Member

Re: You came to the right place crobertson, It's easy to appl...

This is not working for me.  Receive payment requires me to put an amount. It will not take a zero for the received amount.  I am trying to use the CM to completely pay off two invoices.  No matter what I do in receive payment, I cannot post it.