Applying a credit memo

I'm having difficulty applying a credit memo to a specific invoice. I have followed the steps you listed above, but it shows that the customer actually paid the remaining balance after the credit was applied instead of leaving that as an open balance on the invoice. When I follow the steps and save and close, it shows a zero balance on that invoice instead of the remaining balance after the credit was deducted. Any insight you can give would be much appreciated!

It's nice seeing you here in the Community, @tifftucker.

Since your concern is different from the one mentioned above, you need to delete the payment made for the invoice and recreate it. This way, you can correctly apply the credit memo to the invoice and show the correct balance. 

Here's how you can delete the payment:

1. Open the invoice.
2. On the upper right corner, under the amount, click on 1 payment made.
3. Click on the date on the pop-up.
4. Click More on the bottom of the payment, and choose Delete.
5. Choose Yes on the pop-up.

Once done, we need to recreate the payment. Please follow these steps:

1. Open the invoice.
2. Click on Receive Payment.
3. On the Amount Received box, change it to 0.
4. Tick the invoice and credit memo.
5. On the Payment Column for the invoice, change it to the amount of the credit memo.
6. Click on Save and Close.

You can read this article for more information: Apply a credit memo, credit or refund to a customer.

Please let us know in the comment section below if you have other questions.

None of these options work. I am having the same problem. I went in and changed my settings to automatically apply credits, but it won't apply them to existing invoices. I am on hold with customer service, looking at 30 minute wait. I've tried every logical option to apply this credit. I need to apply it and then send the invoice to the tenant/customer so they can see what they owe. It appears they will need to pay the balance due and then I would be able to apply the credit, which makes no sense and is cumbersome. I rarely issue credits and don't recall this problem, so it may just be a glitch since I've searched online quite a bit and the typical instructions do not work.

SOLUTION:

Go into Receive Payment on an Invoice. It will auto populate, but ignore that. Under Amount Received at the top of the payment window, enter $-0-. Then mark the box to the left of the invoice, it will populate with the full amount of the invoice. At this point at the very bottom you will see "Amount to Credit" is a negative amount. Now mark the box to the left of the Credit Memo. It will auto populate with the open balance of the CM, which should match the payment amount you put in on the line above. Now at the very bottom it should say Amount to Apply, which should equal your CM and then Amount to Credit will be zero. Save and close. This is a rather convoluted way of doing it imo, but this is how it is done.

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@Tracy19 wrote:

SOLUTION:

Go into Receive Payment on an Invoice. It will auto populate, but ignore that. Under Amount Received at the top of the payment window, enter $-0-. Then mark the box to the left of the invoice, it will populate with the full amount of the invoice. At this point at the very bottom you will see "Amount to Credit" is a negative amount. Now mark the box to the left of the Credit Memo. It will auto populate with the open balance of the CM, which should match the payment amount you put in on the line above. Now at the very bottom it should say Amount to Apply, which should equal your CM and then Amount to Credit will be zero. Save and close. This is a rather convoluted way of doing it imo, but this is how it is done.

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@Tracy19 wrote:

SOLUTION:

Go into Receive Payment on an Invoice. It will auto populate, but ignore that. Under Amount Received at the top of the payment window, enter $-0-. Then mark the box to the left of the invoice, it will populate with the full amount of the invoice. At this point at the very bottom you will see "Amount to Credit" is a negative amount. Now mark the box to the left of the Credit Memo. It will auto populate with the open balance of the CM, which should match the payment amount you put in on the line above. Now at the very bottom it should say Amount to Apply, which should equal your CM and then Amount to Credit will be zero. Save and close. This is a rather convoluted way of doing it imo, but this is how it is done.

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Let's try applying the credit memo in a private browser, miradorit.

There are instances that the browser we're currently on is not working. Using a private browser can help us continue our work inside QuickBooks.

Here's how to enter the credit memo:

1. Click the Plus (+) icon.
2. Under Customers, select Credit Memo.
3. Enter your customer's name, date, product/service, amount, and quantity.
4. Then, Save and close.

Once done, you'll have to apply the credit memo:

1. Select the Plus (+) icon, then Receive Payment.
2. Select your customer's name.
3. Put a check mark under Outstanding Transactions and Credits field.
4. Click Save and close.

You can go to your customer profile to check if you've successfully linked the credit memo.

Another way to check your customer's balance is to run the Customer Balance Detail report.

I'm always around if there's anything else that I can help you with. Have a good day!

Good day, @marvelcontracting.

I want to ensure that you'll be able to apply credits to your customers' invoices successfully. Let's get this sorted out.

Being unable to link your bank account in QuickBooks Online isn't a factor why the Credit Memo option isn't available upon receiving payments. Once you have a credit available, you should be able to apply it to an invoice upon receiving payments. 

To single this issue out let's go ahead and access your QuickBooks on a private-browser to verify if the issue is browser related.

The cache is stored for increased loading performance, but too much can accumulate which can cause some odd errors and bog down processes. To access private browser please check out these different keyboard shortcuts:

• Google Chrome: press Ctrl + Shift + N
• Mozilla Firefox: press Ctrl + Shift + P
• Safari: press Command + Shift + N

If it works fine, go back to your regular browser and clear its cache. I'm including an article that goes over this in more depth and provides steps for supported browsers: Delete or Disable Cache and Temporary Internet Files in Your Web Browser.

If the problem continues after trying this step, I'd suggest getting in touch with our Customer Care Team. They have the tools that can help determine what's causing the issue and have the ability to create an investigation if necessary.

Keep me updated on how it goes. I'll be around to help if there's anything else you need with applying credits. Wishing you well!

I'd like to thank you for following the steps provided above, marvelcontracting.

On the Amount received field, you'll have to enter an amount that can decrease the total invoice amount. It isn't possible to apply a credit memo with a zero amount.

You've mentioned that you don't have a tick-box for Credit Memo. This error has been reported already and our developers are now fixing it.

In this case, I'd suggest contacting our Customer Support Team. They'll be able to include you on the list of the affected users.

To reach out to them:

1. Go to the Help menu and select QuickBooks Desktop Help. Or simply press F1 on your keyboard.
2. Click Contact us. Then, enter "Credit Memo" as the topic.
3. Select Let's talk or Continue. Choose either Start messaging or Get a callback.

Reply to this thread anytime if you have other concerns.

The credit memo is properly applied to invoices and the customer account shows the proper figures in the aging statement but not in the customer list.

Hi, @mmatheny.

In your aging statement report, it only shows unpaid balances for each customer and grouped by days past due. While in the customer list, it shows all the transactions made from that customer, regardless of what date it was processed.

When you run the Accounts receivable aging summary report, you can only customize the date to the prior year. Here are some helpful articles you can read to learn more about the Aging report:

• Why aging reports have both Current and 1-30
• How to get your Aging Reports to match

You can also visit our Reports and accounting page for QuickBooks Online to learn some tips on managing your report.

Also, in case you want to export your report to MS Excel, you can read this article for the detailed steps: Export your Reports to Excel from QuickBooks Online.

Don't hesitate to leave a comment below if you need further assistance. I'm always here to help.

Just want to say what a ridiculous this entire thread is for something as simple as applying a credit memo to an outstanding invoice. This is an example of how unready QBO is for "prime time" accounting.

simply does not work!

After I applied the credit memo to the invoice, the credit memo still shows up on the A/R Report. How do I get it off of there?

Hello @Malinda1,

We're unable to remove the credit memo in the report. All account receivables transactions that are settled or not will always display in the A/R report.

This will track transactions related to customers.

You can read this article for more information about understanding accounts receivable. I'm also adding our page about reports and accounting for future reference.

Should you need help with anything else, please let me know. I'd be around to help. Thanks and have a great day.

With the 2016 Desktop (Mac) version you can just "Void" the Credit Memo after applying the actual credit amount. Does that option exist?

Hello there, @Musicman.

If you wanted to delete a Credit Memo that you’ve created in your QuickBooks Online, you can follow the steps below.

Here’s how.

1. Open the credit memo you want to delete.
2. Click the Edit menu.
3. Select the Void Credit Memo or Delete Credit Memo option from the drop-down list.

Let me leave you this article for more information about Credit Memo in QuickBooks Online. Enter and apply credit memos and delayed credits in QuickBooks Online.

Please let me know if you have any other questions, I’ll be glad to help. Have a nice day!

Thanks, Pabz_L,

Glad to see that available online, though my remark was to assist the OP in figuring out how to deal with the CrM effecting their A/R.

Applying the credit memo works with this method (starting from the +New and "Receive Payment"), but not when you go directly into the invoice from the client and hit "Receive Payment" as described earlier in this thread. I don't understand why there is this discrepancy? This is a basic functionality that should be corrected by QBO so Credit Memos can be applied either way. 

Hi @mch2,

Allow me to clear things up for you. 

I've replicated this situation on my QuickBooks Online (QBO) test account. I've confirmed that both situations work just fine. Going directly to an invoice, then pressing the Receive payment button, any open credit memos will be listed under the Credit section.

If this isn't the case, I suggest you check your settings and see if the system is automatically applying these credits.

Here's how:

1. Go to the Gear icon. 
2. Select Account and Settings.
3. Press the Advanced tab.
4. Search for the Automation section, then click on it.
5. Ensure the Automatically apply credits option is disabled.
6. Hit Save, then Done.

Otherwise, follow these troubleshooting steps for your browser:

1. Open your browser's private window. This isolates the cache, which is the usual cause of browser issues.
   • Google Chrome: Ctrl + Shift + N
   • Microsoft Edge: Ctrl + Shift + P
   • Firefox: Ctrl + Shift + P
   • Safari: Command + Shift + N
2. If that works, go back to your regular browser, and clear its cache. 
3. If the issue persists, open an alternative browser available for you. 

Any other issues you encounter that's browser-related, you can keep this article for reference: Troubleshooting browser problems. You can find steps specific to a certain browser, along with links to other related articles. 

Do you need further assistance? Place a comment below, and I'll get back to you. 

Hello Ryan_M,

I appreciate your effort to clear this up, but it so far is unsuccessful and this is an ongoing issue. Today I put in another credit memo to apply to a customer's open invoice. It shows as "unapplied." I go in to the open invoice and hit "Receive Payment." Scrolling down there is NO option to select the credit memo. It also doesn't work now when I go "+New" and "Receive Payment."

Under "Settings" auto-applying credit memos is not selected. I am using Chrome and also tried this in an incognito tab with the same unsuccessful result. 

Is this an ongoing issue for other users or just my account? I will try to contact customer service for some help but any additional insights would be appreciated, thank you.  

I had a rep walk through the issue on a screenshare and we resolved it. The issue was with the customer name. We have a number of sub-clients under a larger organization. When I created the credit memo it auto populated the customer name to the parent client. This made it so the credit memo would not show when I selected the invoice for a sub-client.