Converting Billable Expense Charges to Credit Memos

jhansell · ‎April 08, 2024

Here's the situation I am running into:

I have a Vendor Credit, with a line that is marked billable to a customer. This creates a Billable Expense Charge on the customer with a negative total. Currently, as far as I'm aware, I can only create an invoice from this, resulting in an invoice with a negative total amount on the customer's page.

The intent is to pass the credit from the vendor to the customer, but I would like to use a credit memo in this case because an external system we export the transactions into does not support negative invoice totals.

Is there a different way to create a credit memo that still links to the billable expense charge? If not, I would like to request this to be added as a feature.

Ideally I would like to see the 'Create Invoice' button on the billable expense charge to turn into a 'Create Credit Memo' button if the charge is negative.

MirriamM · ‎April 08, 2024

Hello there, jhansell. Thanks for posting in the Community forum.

At this time, converting the Billable Expense Charge to a Credit Memo right away isn't an option.

QuickBooks Online (QBO) keeps purchases and sales separately. As a workaround, you can create a journal entry to transfer the vendor credit as a credit to the customer. Before doing so, I recommend consulting with your accountant. They can provide more expert advice in dealing with this situation. You may use our Find an Accountant tool if you don't have one.

Please note that we are constantly striving to improve our software to meet all your business needs. In the meantime, I suggest that you provide feedback to help us enhance the program. To submit your feedback, kindly follow the steps below:

Go to the Gear icon at the top.
Select Feedback.
Enter your comments or product suggestions.
Then select Next to submit feedback.

To stay up-to-date with the latest and upcoming changes for QuickBooks products, please visit this link: QuickBooks New Features and Innovations.

To get helpful insights on the things you buy and sell, and the status of your inventory, you can check out this article on what reports to run: Use reports to see your sales and inventory status.

If you need further assistance in managing your vendor and customer balances, don't hesitate to contact me anytime. I'm always here to help you.

View solution in original post

MirriamM · ‎April 08, 2024

Hello there, jhansell. Thanks for posting in the Community forum.

At this time, converting the Billable Expense Charge to a Credit Memo right away isn't an option.

QuickBooks Online (QBO) keeps purchases and sales separately. As a workaround, you can create a journal entry to transfer the vendor credit as a credit to the customer. Before doing so, I recommend consulting with your accountant. They can provide more expert advice in dealing with this situation. You may use our Find an Accountant tool if you don't have one.

Please note that we are constantly striving to improve our software to meet all your business needs. In the meantime, I suggest that you provide feedback to help us enhance the program. To submit your feedback, kindly follow the steps below:

Go to the Gear icon at the top.
Select Feedback.
Enter your comments or product suggestions.
Then select Next to submit feedback.

To stay up-to-date with the latest and upcoming changes for QuickBooks products, please visit this link: QuickBooks New Features and Innovations.

To get helpful insights on the things you buy and sell, and the status of your inventory, you can check out this article on what reports to run: Use reports to see your sales and inventory status.

If you need further assistance in managing your vendor and customer balances, don't hesitate to contact me anytime. I'm always here to help you.

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Converting Billable Expense Charges to Credit Memos

Converting Billable Expense Charges to Credit Memos

Converting Billable Expense Charges to Credit Memos

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