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DBETHEA
Level 2

Hello,

 

I am looking for best practices for payments. 

 

We have numerous customers whose payment for Invoices are made by the same accounting department. 

 

Each customer has their own account number. Their payments all come in on one check. Each line itemed on Invoice is paid against the specified Invoice number for the specific account.

 

The issue we are having is that the accounting department is somehow duplicating Invoice payments.  They are unable to only pay 1 Invoice 1 time.  Then they are requesting line credits on the check payments.

 

Example:  We received a payment for 1 Invoice 2x.  That customer now has a credit on their account.  On the next check run, they subtracted the overpayment for this account which lessens the check amount. 

 

I need to be able to tell the system this credit is no longer available for that account and the rest of the Invoices listed are paid in full even though the check is short. I also need to be able to deposit the check that is short but somehow list the negative number on the make deposits screen. 

 

I am ok with creating a clearing account (but would need helping doing so) or a separate G/L account.

 

I hope this explains it clearly enough.  If you need further information please advise.  Thanks!

Solved
Best answer April 25, 2019

Best Answers
JanyRoseB
QuickBooks Team

Thanks for getting back to me, DBETHEA.

 

I'd like to acknowledge your effort in sharing very detailed information about your concern. Now, to achieve your goal which is to transfer the credit from one customer to another, you need to create first a journal entry and then apply the credit.

 

To manually transfer the customer's credit, let's set up a clearing account fist. Here's how:

  1. From the Lists menu, select Chart of Accounts.
  2. Right click anywhere in the Chart of Accounts, then select New.
  3. In the Add New Account window, select the Bank radio button.
  4. Select Continue.
  5. In the Account Name field, enter Clearing Account, Barter Account or Wash Account.
  6. Do NOT enter an opening balance.
  7. Click Save & Close

Next, let's create a journal entry to move the credit from the customer to clearing account by following these steps:

  1. From the Company menu, select Make General Journal Entries.
  2. On the first line, debit the Accounts Receivable with the amount to be transferred. In the Name column, select the Customer:job you are transferring the credit from.
  3. On the second line, credit the Clearing Account
  4. Select Save & Close.

Once done, please follow the steps in this article and scroll-down to Step 3 to Step 5Transfer customer credit from one job to another

 

You can pull up the Transaction Journal report from the Reports menu to show the journal entry you've processed to transfer credits to another customer. 

 

If you need further assistance with the steps, I recommend you to contact our QuickBooks Desktop Support Team. They have additional tools to pull up your account and do a remote session. 

 

Here's how you can contact our customer support: 

  1. Select QuickBooks Desktop Help from the Help menu.
  2. You can also press F1 on your keyboard to bring up the same Help Panel
  3. In order to route you to the correct support expert, we need to know what type of question you have.
  4. Click Continue.
  5. We’ll provide you a few options. You choose which one is best for you.

That should do it! Please know that you're always welcome to post if you have other questions about applying credits. Wishing you and your business continued success. 

View solution in original post

8 Comments
IamjuViel
QuickBooks Team

Appreciate the complete details of your concern, @DBETHEA.

 

I want to share some details on how you can apply your customer's credits and record their negative deposits in QuickBooks.

 

To start with, since you already created a credit memo for the customer, let's proceed with receiving a payment to apply the credit to customer's invoice. 

 

Here's how:

  1. Click the Customer menu.
  2. Choose Receive Payments.
  3. From the Received from drop-down, select the Customer.
  4. Go to Discounts And Credits.
  5. In the Available Credits section, mark the check you created, then select Done.
  6. Select Save & Close.  

 

On the other hand, when you record a deposit together with an expense transaction, simply add a second line on the deposit and enter the expense transaction with a negative amount on it.

op.jpg

 

That should do it! This will allow you to record your customers payments and credit memo's accurately in QuickBooks.

 

Feel free to visit us here in the Community if you have other questions about managing your account receivables in QuickBooks Desktop. I'm always here to help.

DBETHEA
Level 2

Thank you for your response, however, that does not solve my issue.  I am referencing the fact that one customer has a credit.  We have payments for several other customers and the credit customer credit appears as a negative balance on the check. 

 

  1. How do I tell the system that the credit has now been absolved?
  2. How do I receive in the check and tell the system all the other Invoices are PAID IN FULL even thought he check was short.

I see where your suggestions states I am able to receive in full payments and then create a separate line on the deposit for a negative number to even out the check, but that doesn't solve #1 how do I tell the system that credit is no longer available for that customer. 

 

And just to be clear - the customer with the credit has NO open invoices for me to apply the credit to.  All the Invoices on the check are for OTHER customers. 

 

I hope this makes more sense.

 

Thanks,

-db

JanyRoseB
QuickBooks Team

Thanks for getting back to this thread, @DBETHEA.

 

I want to make sure I provide you the right resolution about the credit memo applied for customer. 

 

To identify the system that the credit has been absolved, you'll need to write a check and select the Account Receivable on the expense account. It will help offset the remaining credit of your customer. 

 

However, I need a few more details about the issue for me to replicate here in my QuickBooks sample file. I need to ask the amounts and how you recorded the transactions in QuickBooks. This information you can provide is extremely helpful for us to narrow things down. 

 

Don't hesitate to click the Reply button. I'll be around to help. 

DBETHEA
Level 2

Hi JanyRose,

 

Unfortunate, this issue has nothing to do with reports.  Thank you trying to help. 

 

It seems there is no fix for this issue. 

 

Thank you all for trying.

 

-db

JanyRoseB
QuickBooks Team

Hi, DBETHEA.

 

My post above is already updated. I appreciate if you could provide the additional information I needed. 

DBETHEA
Level 2

Hi Jany: 

 

I did not apply a credit memo for the customer yet.  Question: If I were to apply the credit memo for a payment would it adjust the inventory as if items were returned?

 

Does writing a check to A/R mean that it will write a dummy check?  We do not want to return any money in the form of a real check as the money was taken from other money that was owed to us. 

 

Let me try to give you and example as I do not wish to share exact details publicly. 

 

I have two companies - Jane Doe's Buffet and Kara's Horse Parlor.  Each has a different account setup with me.  Jane Doe's Buffet is account #1 and Kara's Horse Parlor is account #2.  They both purchase items from me.  Acct# 1 is invoiced on Invoice # 2505 for $5.00.  Account #2 is invoiced for $10 on Invoice #2510.  They have the same account person.  Who writes me a check for acct #1 Invoice 2505 for $5.  I deposit the check.  I receive another check for Invoice 2505 for $5 for acct #1.  this account now has a $5 credit.  I then receive a check for Invoice 2510 for $10 with a credit for 2505 for $5.  so the check is only $5.  How do I tell my system that Jane Doe's Buffet has taken $5 from Kara's Horse Parlor's $10. 

 

 

JanyRoseB
QuickBooks Team

Thanks for getting back to me, DBETHEA.

 

I'd like to acknowledge your effort in sharing very detailed information about your concern. Now, to achieve your goal which is to transfer the credit from one customer to another, you need to create first a journal entry and then apply the credit.

 

To manually transfer the customer's credit, let's set up a clearing account fist. Here's how:

  1. From the Lists menu, select Chart of Accounts.
  2. Right click anywhere in the Chart of Accounts, then select New.
  3. In the Add New Account window, select the Bank radio button.
  4. Select Continue.
  5. In the Account Name field, enter Clearing Account, Barter Account or Wash Account.
  6. Do NOT enter an opening balance.
  7. Click Save & Close

Next, let's create a journal entry to move the credit from the customer to clearing account by following these steps:

  1. From the Company menu, select Make General Journal Entries.
  2. On the first line, debit the Accounts Receivable with the amount to be transferred. In the Name column, select the Customer:job you are transferring the credit from.
  3. On the second line, credit the Clearing Account
  4. Select Save & Close.

Once done, please follow the steps in this article and scroll-down to Step 3 to Step 5Transfer customer credit from one job to another

 

You can pull up the Transaction Journal report from the Reports menu to show the journal entry you've processed to transfer credits to another customer. 

 

If you need further assistance with the steps, I recommend you to contact our QuickBooks Desktop Support Team. They have additional tools to pull up your account and do a remote session. 

 

Here's how you can contact our customer support: 

  1. Select QuickBooks Desktop Help from the Help menu.
  2. You can also press F1 on your keyboard to bring up the same Help Panel
  3. In order to route you to the correct support expert, we need to know what type of question you have.
  4. Click Continue.
  5. We’ll provide you a few options. You choose which one is best for you.

That should do it! Please know that you're always welcome to post if you have other questions about applying credits. Wishing you and your business continued success. 

View solution in original post

DBETHEA
Level 2

these steps helped me get in the right direction, once I screen shared i was able to get the issue resolved!

 

Thanks!

-db

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