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Community Backer **

Credits

Hello,

 

How do I enter credits that were given to me for later use.  One customer send me a check to keep for credit and I have another customer that payed with his credit card $100 .  Is this something I enter in Journal entries?

 or how do I enter these transaction ? Also, lets say the customer who gave me a credit of $100 decides its time to order and I invoice him and his total comes up to 93.00 and he wants to use his credit. How do I enter that transcations?

1 Comment
QuickBooks Team

Re: Credits

I’m happy to see you in the Intuit Community, Eve2019.


Thanks for being part of the QuickBooks family. I’ll be your guide, so the credit received is properly handled in your account.

 

Based on the details provided, you’ll have to record the transaction as an upfront deposit. To do this task, I’ve laid out the steps below.


To start off, create a liability account:

 

  1. At the top menu bar, select Lists, and choose Chart of Accounts.
    up.png
  2. In the Chart of Accounts window, right-click your mouse or click on the drop-down for New.
    up1.png
  3. Mark the radio-button for Other Current Types, and select Other Current Liability.
    up2.png
  4. Enter Upfront Deposit in the Name field.
    Note: You should set up the account with a zero opening balance unless you are tracking existing upfront deposits or retainers.
    up3.png
  5. Click Save & Close.

Next, set up an item to use when you record the associated transactions. You can follow these steps.

 

  1. Choose Lists at the top menu bar, then select Item List.
  2. In the Item List window, right-click your mouse or click on the drop-down for New.
  3. Click on the drop-down for Type, and choose how you want to input the item.
  4. For example, Service is used if you collect upfront deposits for services. Meanwhile, Other Charge if you collect upfront deposits for products.
  5. Enter a name in the Item Name/Number field.
  6. In the Account section, click on the drop-down and select the Upfront Deposit liability account.
  7. Click OK.

Since you already received the check, make sure to record it by creating a sales receipt.

Once you’re ready, you can create an invoice and then apply the credit.


There are two ways on how to handle this type of transaction. I suggest following the steps that fit your current situation.

 

For detailed instructions on how to create a sales receipt and link the credit, follow the process on this article and proceed to Step 3: Record upfront deposits or retainers you receive.


There you go. You should be able to track the credit seamlessly.


Please let me know about your success following the resolution, or if you have any other concerns. I'll be right here with you.

 

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