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Level 3

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

I ship and invoice to several discrete store locations that are part of a large corporation.  I receive checks from the corporation that need to be applied to several locations and invoices.  When everything matches up, there is no problem. My last received check includes a credit taken for damaged goods on the floor of one of their stores.  Before I received the check, I was notified that they were going to take a credit, so I entered a credit memo in quickbooks such that I would have something to "match to" when the next check comes in.

 

Here is an example to explain the situation.

I received a check for $295 from the corporation.  I want to apply it to and $100 invoice for Store A, a $200 invoice to Store B  and a $5 credit memo that I entered for Store C.  So there are three components to this check: two invoices and one credit memo.  

 

Entering the the payments for Stores A and B are easy.  When I go to Payment for Store C, I can see the $5 credit that is available down below the list of invoices, but once I try to "consume/apply" the Credit Memo, QB automatically applies it to the oldest invoice  thereby lowering the open balance on that Invoice.  Which I believe will cause a problem when that invoice is paid in full by the corporation.  

 

It also screws up the total when I go to make the deposit from "undeposited funds".  So I'm trying to get the $295 to apply to the two open invoices and consume the $5 credit memo and the $295 show up to make the deposit, so that it matches the actual deposit made at our bank.

 

How do I accommodate this situation in QB Desktop for Mac?

 

 

Solved
Best answer November 19, 2019

Best Answers
Highlighted
Level 3

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

Thanks JaneD,

I think the generation of the Credit Memo is causing the problem, I thought that that generating it was the appropriate way to document what the Store C credit was for and I could "consume" it during the Apply Payment process....which now know I is not possible.

 

So I am going to Delete the credit memo, and:

1. Create a Journal Entry for the $5 -- Credit Undeposited Funds and Debit Bad Debt Expense and notate the reason in the memo field. 

2. Receive Payment for both the Store A invoice ($100) and the Store B invoice ($200)

3. Make Deposits by grabbing the: +100, the +200 and the -5 for a total of $295, which matches the check that have in hand.

 

So far this is the only method that I have found to get the Store A and Store B invoices paid in full and have my deposit match the check and not have any other invoices impacted...which is what the credit memo was doing.

 

Hopefully this is appropriate form an accounting perspective.....

 

Thanks to all who helped me with this.

View solution in original post

8 Comments
Highlighted
QuickBooks Team

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

Hi there, Whillyjo.

 

When you click Apply existing Credits, you can select which invoice you want to apply it to.

Just click Discount Info to make sure the right invoice number is selected.

 

Here's how

 

1. Click the Customers menu.

2. Select Received Payments.

3. Choose the Customer.

4. Click the Discount Info button beside the Existing credits option.

5. Once you've confirmed that its already in the correct invoice, click the Save button.

 

I'll be glad to help you if you have any other questions.​ Have a good day!

Highlighted
Level 3

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

I don't want to apply it to an invoice.

 

In the above example, the check received from the corporation is to pay two invoices in full, but they deducted a CM for damaged floor stock that has nothing to do with the invoices that are being paid by this check.  

 

I'm trying to receive payment in full for the invoices for Store A and Store B, but they consumed a CM written for Store C.  

Highlighted
QuickBooks Team

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

Thanks for getting back to us, Whillyjo.

 

First off, let's go to your preferences and turn off the auto-apply payments feature. This way, QuickBooks won't automatically apply credits to open invoices. Here's how:

  1. Go to QuickBooks, then select Preferences.
  2. Select Sales & Invoicing.
  3. Uncheck the Automatically apply payments box.

Next, delete the payment you've recorded that has the credit applied to it. This way, you'll be able to manually select if you want to apply the credit or not.

 

Let me show you how:

  1. Go to the Customers menu, then select Customer Center.
  2. Select the customer, then open the payment.
  3. Hit Command + D on your keyboard to delete the payment.
  4. Click OK to confirm the deletion process.
  5. After that delete and re-create the credit memo for Store C.
  6. Navigate the Receive payments again to record payments without applying the credit memo.

Lastly, make a bank deposit of $300. Then, enter a negative amount for the credit. This will match to the actual amount paid by the customer. 

 

To make a bank deposit:

  1. Choose Banking, then Make Deposits.
  2. In the Deposit sheet, click the payment you'd like to deposit.
  3. Click OK.
  4. In the Deposit window, select the account where you want to deposit the funds.
  5. Complete other fields, then click Save.

Should you need additional information, please leave a comment below. I'm always around to help you out.

Highlighted
Level 3

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

MaryLandT,

Thanks for the information, but it does not address the issue that I have.

 

Please go to the first post of the discussion to see the scenario.

 

I have a $295 check that I want to apply to a $100 invoice for Store A, a $200 invoice to Store B and a $5 credit memo issued to Store C.  I do not want any of the invoices for store C to impacted by this action.

 

Once the payments have been applied, i need to have $295 in Undeposited funds that I can then deposit into a bank account.

 

Can  a Credit Memo be "consumed" without applying to an invoice or writing a check to the customer?

Highlighted
QuickBooks Team

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

I appreciate you getting back to us and providing clarifications, @Whillyjo.


Consuming the credit memo without applying it to an invoice or writing a check is currently unavailable. If you wish to write off the $5 amount from the damaged floor stock, create a general journal entry.


First, make sure to follow the steps provided by my colleague MaryLandT to unlink the credit memo from the old invoice. I also recommend consulting an accountant before performing the steps to ensure your books are accurate. 


Here’s how:

  1. From the Banking menu, select Make General Journal Entries.
  2. Click New Entry.
  3. Customize the date and fill in the entry number of the transaction.
  4. Pick Accounts Receivable in the Account column of the detail area.
  5. Enter the amount under the Debit column and the customer name under the Name section.
  6. In the next line, choose an offset account (usually Expense) and enter the amount under the Credit column.
  7. Hit Save.

Once done, apply the JE to the existing credit. Follow these steps:

  1. Click the Customers menu and select Receive Payments.
  2. Choose the customer to whom you wrote the JE. You’ll see the amount of the credit included in the Existing Credits fields and the JE in the bottom section of the window.
  3. Select the Apply existing Credits checkbox.
  4. Hit OK to save the changes.

I’m adding these resources for your reference:

 

Please leave a comment if there’s anything else you need. I’m here to provide further assistance. Have a good one!
 

Highlighted
Level 3

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

Thanks KhimG!

A lot of good information, especially letting me know that what I am trying to do (consume a CM without applying to an invoice or cutting a check) is not possible in QB, so that is helpful.

 

Also, the JE and the process to tie it to a CM is helpful as it removes the CM from the AR list, which is good as I can us that in other instances.

 

But, in the scenario described in the first posting of this discussion, the process with the JE and CM does not address my Payment/deposit difference.  Applying the single check to the the invoice for Store A and for Store B, there is $300 sitting in undeposited funds, but I have a check for $295.  

 

Does that make sense?

 

Seems like I need to have JE tied to Undeposited funds and that customer, and bypass the CM.....and maybe that is the answer.  If I eliminate the CM, enter the payments for Store A and Store B and write a JE between AR for Store C and Bad Debt expense (or other), will the JE show up in Undeposited funds when I grab the entries for Bank>Make Deposits?  Then, when I make the deposit, I grab the +$100, the +$200 and the -$5 for a deposit of $295??

 

 

Highlighted
Moderator

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

Hi there, Whillyjo.

 

Creating a journal entry won't affect your Profit & Loss report. Therefore, it will retain invoice's income and not create loss from the damage goods.

 

Additionally, the credit memo won't show up in the Undeposited Funds account since it is a non-posting type of transaction.

 

In this case, delete the credit memo to unapply it from the old invoice.

 

Here's how:

  1. Open QuickBooks Desktop for Mac.
  2. From the Customers menu, select Customer Center.
  3. Click on the customer's name to open the profile.
  4. Look for the credit memo and double-click on it.
  5. Press the Command and D keys to delete.
  6. Select OK to confirm.

See the Remove or unapply a credit from an invoice or bill article for further guidance.

 

Then, recreate the credit memo and apply it to the correct invoice.

 

You can refer to this article for the detailed steps: Record a credit memo or refund in QuickBooks Desktop for Mac.

 

Keep me posted if you have any follow-ups or other questions. I'll be here to help. Have a great day.

Highlighted
Level 3

Receive a corporate payment covering multiple separate store's invoices and credit memos in Quickbooks Desktop for Mac

Thanks JaneD,

I think the generation of the Credit Memo is causing the problem, I thought that that generating it was the appropriate way to document what the Store C credit was for and I could "consume" it during the Apply Payment process....which now know I is not possible.

 

So I am going to Delete the credit memo, and:

1. Create a Journal Entry for the $5 -- Credit Undeposited Funds and Debit Bad Debt Expense and notate the reason in the memo field. 

2. Receive Payment for both the Store A invoice ($100) and the Store B invoice ($200)

3. Make Deposits by grabbing the: +100, the +200 and the -5 for a total of $295, which matches the check that have in hand.

 

So far this is the only method that I have found to get the Store A and Store B invoices paid in full and have my deposit match the check and not have any other invoices impacted...which is what the credit memo was doing.

 

Hopefully this is appropriate form an accounting perspective.....

 

Thanks to all who helped me with this.

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