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Frequent Explorer **

How to zero out a credit memo

Looking for the best option to either clear out a credit memo or remove the value for a customer.

In the past, we gave our customers a referral credit for sending us a new customer.  We have discontinued this practice as we don't generate enough business that way.  Some of these customers that we gave this credit too, still have this credit on their account and they are no longer in the area, or just don't care about it and I would like to zero out their accounts, so it does not show on there.

What is the best way of doing this without having to a check or something, that would affect the actual cash in our system?

Thanks

Solved
Best answer 12-10-2018

Accepted Solutions
ProAdvisor

You have to create an invoice to offset the credit & then...

You have to create an invoice to offset the credit & then use the receive payment screen to apply the credit to the invoice.
ProAdvisor

@egotz Doesn't matter the credit memo is from 2013.

@egotz

Doesn't matter the credit memo is from 2013.
ProAdvisor

You're not adding cash. If you have a credit for $100 & y...

You're not adding cash. If you have a credit for $100 & you create an invoice for $100, there is no cash. The credit & invoice wash each other out.
15 Comments
ProAdvisor

You have to create an invoice to offset the credit & then...

You have to create an invoice to offset the credit & then use the receive payment screen to apply the credit to the invoice.
Frequent Explorer **

Won't that add cash to my system that does not exist or i...

Won't that add cash to my system that does not exist or is it just going to make it a wash?
Not applicable

It may not add cash, but it does increase sales which are...

It may not add cash, but it does increase sales which are reportable for sales tax...
Established Community Backer ***

A credit memo will Decrease Sales, because of what you li...

A credit memo will Decrease Sales, because of what you list on that credit memo.
ProAdvisor

You are correct Brenda. However, the original credit memo...

You are correct Brenda. However, the original credit memo reduced sale & was reportable on the sales tax report. This just washes it out.
ProAdvisor

@cdhodgdon  Creating an invoice to offset a credit memo...

@cdhodgdon

 Creating an invoice to offset a credit memo for the same amount doesn't add cash.
ProAdvisor

@egotz Doesn't matter the credit memo is from 2013.

@egotz

Doesn't matter the credit memo is from 2013.
ProAdvisor

You're not adding cash. If you have a credit for $100 & y...

You're not adding cash. If you have a credit for $100 & you create an invoice for $100, there is no cash. The credit & invoice wash each other out.
Not applicable

does it matter if the Credit Memo is from 2013? we are on...

does it matter if the Credit Memo is from 2013? we are on cash basis
cnr
Not applicable

Re: You have to create an invoice to offset the credit & then...

We created a bogus invoice and applied the credit. The credit balance was showing as 0 until we hit OK and the invoice was marked as paid but the credit amount remained. How do we fix this?

QuickBooks Team

Re: You have to create an invoice to offset the credit & then...

Hello cnr,

 

Thank you for posting in the Community. I'm here to assist you with using the customer credit balance on an invoice.

 

The credit balance of the customer will show as negative on the customer list. Let's make sure to use the available credit on an invoice by selecting the Apply Credits option.

 

Here's how:

  1. Double-click the open invoice.
  2. Click the Apply Credits.
  3. Below Available Credits, put a check mark on the credit amount.
  4. Click Done.
  5. Make sure to click Save & Close.

Once done, you can go back to the customer list and check if the balance changes. I've also attached a couple of screenshots for your guide.

 

I'll be on a lookout on how this goes. I encourage you to add some screenshots by posting a comment down below.

 

 

 

 

Not applicable

Re: You have to create an invoice to offset the credit & then...

We have lots of small credit amount for all kinds of different customers and stores (1000 different stores), what is the easiest and efficient way to clear all of them without by clicking each customer's account? I was looking for solution though transaction pro software but no progresses. Please advise. Thanks.

 

 

Anonymous
Not applicable

Re: You have to create an invoice to offset the credit & then...

Hi there, WINWIN.

 

Currently, there isn't a way to delete customer credits without opening each customer. You'll need to open the customer's profile first and open the credit to delete it. it. 

 

For now, you can request your preferred way of deleting these transactions to our developers. Just click Help  at the top, select Send Feedback Online, and choose Product Suggestion. 

 

Reach us again if there's anything else you need. 

Not applicable

Re: How to zero out a credit memo

A credit was given by mistake and want to cancel it

 

QuickBooks Team

Re: How to zero out a credit memo

Hello there, @snikes123.

 

Good to see you here in the QuickBooks Community. I'm here to help walk you through on how to cancel the credit applied to the transaction. 

 

Here's how to remove a credit memo from an invoice transaction:

  1. Locate the appropriate credit memo.
  2. Press Ctrl + H to display History.
  3. Double-click the invoice.
  4. Choose Apply Credits.
  5. On the Previously Applied Credits window, clear the selection for credit.
  6. On the Apply Credits window, select Done.
  7. On the invoice, select Save and Close.

However, if this is a vendor credit from a bill, you can follow the detailed steps on to remove it: Remove or unapply a credit from an invoice or bill

 

That should do it! Don't hesitate to leave a comment below if you have additional questions about the credit memo. I'd be happy to answer them for you. Have a great day. 

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