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Level 3

How to write off an available credit that's does not have a credit memo?

I have a $0.04 credit on an account and every time I do anything with this customer I'm asked if I want to use it.  I want to write it off.  If I apply this to an open invoice it will throw off every check they send us.  I don't have a credit memo for it so I can't delete it. Thank you! 

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QuickBooks Team

How to write off an available credit that's does not have a credit memo?

Hi @nancyl,

 

I'll lend you a hand with your question. You can apply a discount to write off small amounts. 

 

You'll need to create a charge off account, and a charge off item. 

 

To create a charge off account: 

  1. Go to the Lists menu.
  2. Select Chart of Accounts.
  3. Hit the Account menu, then choose New.
  4. Select Income, then Continue.
  5. Enter an account name, then Save & Close.

To create a charge off item:

  1. Move to the Lists menu.
  2. Select Item Lists, then choose New.
  3. On the Type drop-down menu, select Other Charge.
  4. Enter a name in the Item Name/Number field.
  5. Choose Non-Taxable Sales in the Tax Code field.
  6. Select Minor A/R and A/P Charge-Off in the Account field.
  7. Press OK.

At this point, we can proceed with writing off your customer's credit. Follow these steps:

  1. Click the Customers menu.
  2. Select Create Invoices.
  3. Choose the customer in question in the Customer:Job field.
  4. Pick the item you created earlier in the Item field.
  5. Hit Apply Credits
  6. Tick the box of the credit in question in the Available Credits section. 
  7. Press Done to close the Apply Credits window.
  8. Click Save & Close.

Other options on how you can deal with either customer or vendor credits can be found in this article: Write off customer and vendor balances. You'll find screenshots, along with detailed steps for easy reference. 

 

Have other questions in mind? Place them in the comments below, and I'll be sure to get back to you. 

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