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treasurer101
Level 1

How do I get credit memos on Sales to be reflected as expenses on Profit

We are an HOA and have some owners that do work in exchange for credits on their dues. How do I get those expenses to appear on the P
2 Comments 2
Mark_R
QuickBooks Team

How do I get credit memos on Sales to be reflected as expenses on Profit

I can help get some of the owner's credits as expenses in the profit and loss report, @treasurer101.

 

Since credit memos are for customers and expenses are for vendors, you won't be able to exchange the owner's credit to their dues as an expense. You can consider creating a check or an expense transaction directly to get this reflect as an expense on your profit and loss report.

 

Here's how:

 

  1. Click the + New button, then select Check or Expense.
  2. You can leave the Payee section blank, then choose the Payment account from the drop-down.
  3. In the Category details section, select the appropriate account.
  4. Enter the necessary information and the amount.
  5. Click Save and close.

I'm adding this article for more details: Enter, edit, or delete expenses in QuickBooks Online.

 

Most importantly, I still recommend checking with your accountant. This way, they can offer you some advice on the correct category to use when creating the expense transaction.

 

Also, you might want to check out this article to learn how to customize your profit and loss report: Customize reports in QuickBooks Online.

 

Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a good day.

Mark_R
QuickBooks Team

How do I get credit memos on Sales to be reflected as expenses on Profit

Good day, @treasurer101.

 

I'm back to check if you were able to create a check or an expense transaction to pay the owner's due. If you need more clarification on this, just leave a comment below. I'll be sure to get back to you.

 

Wishing you and your business continued success.

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