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Apply credit memo from one job to multiple invoices under more than one other job.

I have a customer account "City". the customer has 10 locations 1-10 which are setup as jobs. Job 10 was issued a Credit Memo for 750. How can i apply this to multiple other invoices under multiple jobs.


I would think this would be simple to have the credit on the Main account, but if i put the credit on the main account and click discounts and credits, it says there are no credits.

Solved
Best answer 12-10-2018

Accepted Solutions
ProAdvisor

Sorry, you can't do that. Each job needs their own credit...

Sorry, you can't do that. Each job needs their own credit to apply it to invoices. You will need to create an invoice on the customer who has the credit to offset it & then create credit memos on each job so you can apply it to the invoice. Make sure all the credit memos created match the invoice you created on the main customer.
22 Comments
ProAdvisor

Sorry, you can't do that. Each job needs their own credit...

Sorry, you can't do that. Each job needs their own credit to apply it to invoices. You will need to create an invoice on the customer who has the credit to offset it & then create credit memos on each job so you can apply it to the invoice. Make sure all the credit memos created match the invoice you created on the main customer.
Not applicable

Thank you for such a fast response. Sorry for this questi...

Thank you for such a fast response. Sorry for this question. But shouldn't I created the invoice on the job that has the credit memo not the main account? This way all jobs are actually balanced?
Not applicable

That makes sense to me too STNEWELL not sure why they mak...

That makes sense to me too STNEWELL not sure why they make things so difficult on QB.
Active Member

It has become a pain with these credits for customers who...

It has become a pain with these credits for customers who have multiple jobs. They will pay certain jobs but if they don't pay the job that has the credit and yet they take the credit, I can't access the credit. I can't move the credits to different jobs because I need to be able to keep track of them under the certain job. What a pain!!
Anybody know if QB is working on fixing this problem?
Established Community Backer ***

If you process the payment at the Customer Name level, yo...

If you process the payment at the Customer Name level, you can go back to that same payment every time you need to apply it to a different Job Invoice.
Active Member

I agree with crystal.  This is the most frustrating thing...

I agree with crystal.  This is the most frustrating thing.  I have a huge credit to apply to several different sub jobs with small invoice balances.  At the fifth invoice I applied the credit to, the system told me that it would unapply the credits from the first four because the credit couldn't be linked to so many other transactions, in essence, backing out all the work I had just done.  Your software engineers need to come up with more 'real accounting' solutions rather than work around band aids that completely blur the integrity of the transaction.
ProAdvisor

Yes, create the invoice on the job that has the credit memo.

Yes, create the invoice on the job that has the credit memo.
Not applicable

My problem: we sent an invoice for $350 to a customer for...

My problem: we sent an invoice for $350 to a customer for 1 job; the same customer sent us as $0 check with a remit statement showing they were paying the invoice we sent for 1 job while backcharging is the same amount for another job.  I can issue a credit but I can't pay the invoice with it because they are separate jobs. Maybe I'm missing the answer, but please help! Thanks!
Established Community Backer ***

"I can issue a credit but I can't pay the invoice with it...

"I can issue a credit but I can't pay the invoice with it because they are separate jobs."

Use a Clearing bank, such as your Petty Cash account. "Receive" Payment for the one job and "deposit" to petty cash. Make the Credit Memo for the Other Job for the backcharge, and at the top is the Refund = from the same Petty Cash account, for that same amount. Now Petty Cash changed by $0.
Established Community Backer ***

Set up and use an Other Charge Type Items linked to Other...

Set up and use an Other Charge Type Items linked to Other Liability.

Use it on the invoice for the job having the $750 credit.

Use it individually on a credit memo for each job needing the credit.

When you are done, that Liability should be 0, since you would have fully allocated it.

Community Contributor **

Re: Sorry, you can't do that. Each job needs their own credit...

Thanks RayWhite28, I am following your suggestion about creating an invoice at the customer level, then creating a credit memo against the payment on it, then transferring the credit to the correct jobs. It generates general journal transactions while transferring the credit from the customer level to the correct job. But what do I do with the invoice that I created at the customer level? Just delete it, void it, or what? 

Established Community Backer ***

Re: New tools exist in QB 2019

These tools have changed with the release of QB 2019.

 

You never make an invoice or credit memo just to delete it.

 

The function of having the Credit at Customer name that is from a Payment, means you simply open the payment to apply it to newer invoices, and you see the Job Column right there.

 

The function of having a Job Credit needed for other jobs is best managed by using an Other Charge type item linked to Other Liability. Put that on an invoice for the Job name having the credit balance. Put that on a Credit Memo for job(s) needing the credit. This would result in that Other Liability account balance being 0 for this date, or you did not match date and amount.

 

The function of the new tool in QB 2019 is trying to hold your hand through this process; that means you do Not Make any new transactions at all. Do not make the invoice for the name having the credit or the Credit memo for the name needing it. The new tool in QB 2019 is already handling that it found a potential Credit to be used, and it will take care of Both activities for you if you use that tool.

Community Contributor **

Re: Sorry, you can't do that. Each job needs their own credit...

I have QB pro 2019 Desktop. How do I use that tool you're mentioning? Is there a video showing how to access it? I appreciate the quick reply on this, by the way. Could you explain it like I am five with how to use the tool? :)

 

What I am trying to do is make one payment cover two invoices for customer X's job A & job B. I created invoices for A and B, but we know that the payment can't be split like that, so I don't see any other way of doing this other than creating an invoice for X, because an invoice is needed at X level to create a credit memo to X.  Then those credits to X can be transferred to a particular job. But after this is all done, the invoice for X that I created to make the credit memo still exists and is unpaid. What do I do with that? Hopefully this tool is good enough for an accounting dummy like me. 

Established Community Backer ***

Know if this is Two Customers, or just Customer with different jobs

"How do I use that tool you're mentioning?"

 

It is a Pop up. The Program detects you created an invoice for the Customer name where the existing Customer or Customer:Job has an open negative AR balance. The Pop up is the new Notification that there is a tool to handle this for you, if you want it to. I never let it. I want to take full control, because I want to make sure the dates and amounts are controlled for my needs; not what the program assumes I need.

 

This new function in QB 2019 isn't the function you need to be using at all, based on this description of your task: "What I am trying to do is make one payment cover two invoices for customer X's job A & job B. I created invoices for A and B, but we know that the payment can't be split like that"

 

All you need to do is use Receive Payment for CUSTOMER only, to apply this to the invoices listing in the new Job Column in that display. Please see my attachment.

 

This is different:

 

There is a difference between: Customer/customer:Job, the same Customer, values at different "levels"; and Different Customers.

 

Yes, you split it; process it as two Partial Amounts, same check #. Make sure the Receive Payment flows to Undeposited Funds. Now you select Both Parts, to end with the single deposit entry.

 

"so I don't see any other way of doing this other than creating an invoice for X, because an invoice is needed at X level to create a credit memo to X."

 

The Invoices are Actual Sales. You would only have a negative AR because you processed a Receive Payment for more than they owe. That puts the Negative at the name level you just used; with the method of making your own transactions, then, the Liability item is a New Invoice for the name you just created a Negative Balance for, so that you apply the payment to the New Invoice, too. That parks the Value in Liability, for you to "pull out on behalf of a different Customer:Job" by what you do with the Credit Memo.

 

"Then those credits to X can be transferred to a particular job. But after this is all done, the invoice for X that I created to make the credit memo still exists and is unpaid."

 

Then you did it wrong. Example:

 

You are charged $500 airfare. I am charged $500 airfare. I send in the $1,000 check. The party selling to us can simply split their entry. Now there is Nothing more to do.

 

Or, the party selling to us can use that liability item on an Invoice for me, for today. Now they Receive Payment for my full $1,000. That means there is no Open AR for me, positive or negative. Then, they put the Liability item on the Credit Memo for you and apply it to your $500 unpaid invoice. Now there is no Open AR for You, either. All invoices are paid, the credit memo is applied, and the Liability account is 0 balance = washed in and out of that $500 that got Shifted from my payment to be your funds applied.

 

Established Community Backer ***

Receive Payment at Customer Only, for multiple Job names under it

For this:

"What I am trying to do is make one payment cover two invoices for customer X's job A & job B"

 

Just receive Payment using Customer Name, Only. Now you see the two invoices. Process the single payment against both job names invoices.

 

Please see the attachment.

Community Contributor **

Re: Receive Payment at Customer Only, for multiple Job names under it

I think we're on the right track, but my QB doesn't behave like yours.

 

So first, how did you get the "jobs" column to appear in the "customer payment" window? I see it between the date and number columns. Tried a few things, no luck. 

 

Also, I know I have open invoices for A & B, but the option to select those jobs isn't there when I put just the customer name there. But if I put the customer:job in the received from blank, then the invoices appear for that job. In your screenshot, you have just the customer selected and invoices from all jobs appear. Mine won't do that as it is now.  Is there a preference setting that needs to change?  Screenshot attached. 

Established Community Backer ***

Re: Receive Payment at Customer Only, for multiple Job names under it

@QuietEnjoyment

 

Something is going on in your file; notice "B:Becky" isn't showing that the rolled up Total Balance owed is $500, in the customer center?

 

The balances roll, like this, to the top level:

B: should show the open balance of everything under it.

B:Becky should show the rolled total of everything under only the Becky level.

 

I recommend using File menu > Utilities, to rebuild your file.

Community Contributor **

Re: Receive Payment at Customer Only, for multiple Job names under it

Thanks, qbteachmt. I discovered what I'll call quirks about QB that will be quite helpful for anyone reading this thread that sorted out my original problem of receiving one check to pay multiple invoices from different jobs. Distilled down to one sentence it's this: MAKE SURE YOU RECEIVE PAYMENTS AT THE HIGHEST CUSTOMER LEVEL. It won't work at all for any job, subjob, or subsubjob level. Perhaps this is obvious to anyone else here, but not me!

 

I had my customer list organized by two broad categories, "borrowers" and "tenants", hence the "B" for borrower from the screenshot I sent. Under "B" were the the actual customer names, and while I classified them as a customers, QB saw them as jobs underneath "B". Then what I considered jobs I had set up were really just subjobs to QB. The "customer" was "B", the job would be "Becky" and the sub-job would be "X10" & "X11", and I was trying to take a payment at the "Becky" level. In QB 2019 Pro, it appears the only way to receive a payment to parse out to multiple jobs is purely at a customer level. So to fix this problem, I had to get rid of "B" and move all the jobs to be customers. "Becky" went from being a job to a customer, and then the job column appeared, and then I could split my one check payment to the jobs of X10 & X11. 

One step closer to getting the QB black belt. :)  Here is an afterwards screenshot. 

Community Contributor *

Re: If you process the payment at the Customer Name level, yo...

Sorry that answer you gave NEVER works.  I've tried.

Community Contributor *

Re: "I can issue a credit but I can't pay the invoice with it...

This petty cash scenario would likely work, but it's stupid. Why create a completely unrelated work-around?  Why can't Quickbooks fix their inadequacies?  Whatever software writing accountant that thinks that theoretical solution to their theoretical "applying a credit to an invoice problem" is good, needs to get some real world accounting experience. You are doing small business no favors.

QuickBooks Team

Re: "I can issue a credit but I can't pay the invoice with it...

Hello Cheryl2do,

 

I appreciate you joining this conversation about applying credit memo

 

I'm here all ears to listen and take note of your feedback.

 

For now, the option to assign a credit memo to a job isn't available yet. I can pass along your insights and suggestions along here on my end and hopefully get some improvements rolled out in the near future.

 

The best way we can improve the software, service, and product we're proving is by listening, planning, and implementing customer ideas. Your request may not be available yet, but I'll make sure to update you about it.

 

Meanwhile, I recommend checking the following links for QuickBooks articles, tutorials, and blogs. That should provide updated about QuickBooks, @Cheryl2do.

Please know that we don't intend to make you feel this way.  You can always count on me in if you need anything else or you have something for me to share on your behalf. Take care always.

Community Contributor *

Re: "I can issue a credit but I can't pay the invoice with it...

This sentence in your reply is wrong: "For now, the option to assign a credit memo to a job isn't available yet."

 

Most definitely it is available. I can create a credit memo and assign it to a job.  The problem is you only get 2 choices of what you can do with that credit memo.  You can:

 

a. Apply it against an invoice that has the same exact job #

OR

b. If there are no unpaid invoices for that same job #, you can refund the customers $.

 

There are several business reasons why "B" is not the best choice.  That explanation would be another long dissertations for you, but it's late and I'm done trying to educate the people of Quickbooks for tonight.