Problem with applying a credit memo. It shows up as money to deposit even though when I applied the credit memo it shows the amount received as $0?

Hello @chandaplan,

Let's review the details of the transaction in your bank deposit so we can identify if it is the payment with a credit memo applied or not.

When a payment is created, it'll show up in a bank deposit when you use your undeposited funds account as the affecting payment account. With this, consider opening the payment in the Bank Deposit window and inspect the Deposit to account. Make sure it uses your checking or any bank account so it won't show up in the bank deposit.

In addition, make sure it isn't a duplicate transaction so it won't post a double entry in your customer's balance or sales account. If it is a duplicate, open the payment and click Delete to remove it from your customer's balance.

Additionally, I've got you this helpful article for the steps about sending a document to your customer containing a list of the transactions they've made: Create and view customer statements.

You can always leave a comment below if you have any other questions. Stay safe!

I used journal entries to pay for some customer invoices years ago.  I noticed these invoices still show as overdue so I read where you can apply the credit (which was created from the journal entry).  Now that I have applied all the credits to the open invoices, there are deposit amounts.  These amounts aren't really deposits so what do I do with them to remove them?  

I followed these steps and now it shows a deposit to my checking account in quickbooks.  Now what do I do?

Hello, lildeb58. 

Thank you for following the steps above. Once the deposit is shown in the correct checking account, It's the final step to ensure the money you receive from payments is accurately recorded. 

For additional information, you can click this article: How to Record Bank Deposits in QuickBooks Online. This also provides details on how the Bank Deposit Workflow is unique to QuickBooks. 

You can also run the Deposit Detail report . This will give you the details of all the deposits, including the date, customer or vendor, and amount. Just go to the Reports menu and type in Deposit Detail in the Search bar. 

We're always here if you need further assistance. Have a good day and stay safe!

I am having a similar problem.  A customer had a credit of $230.  I went into receive payments and applied part of the credit to a $125 invoice.  There was $105 left.  I applied the $105 to another invoice for $125.  This invoice was left with a $20 balance. That worked.  The problem is the first invoice.  The credit disappeared but the first invoice still says there is $125 owed.  Where did the credit go and why didn't it get applied to the invoice?  Also, how do I fix it?

Thanks!

Thanks for joining in on this thread, Cdw52.

I'd like to share some steps to help you with credit.

To verify, does the credit come from an overpayment? If so, it's possible that the first invoice was excluded from that payment. Let's make sure to review the payment and apply the invoice.

Here are the steps:

1. Go to Sales > Customers.
2. Select the customer's name and find the original payment with the $230 balance.
3. In the Receive Payment page, review if the first invoice is included and has a check mark. If none, put a check mark on the invoice to include it.
4. Click Save and close.

Once done, review the customer's open balance if it's accurate.

To more about applying a credit in QuickBooks Online, you can check out these articles:

• Handle a customer credit or overpayment in QuickBooks Online
• Create and apply credit memos or delayed credits in QuickBooks Online

Please keep me posted on how it goes from your end. I want to make sure this is resolved for you. Stay safe.

Hello all,

I have a similar experience.  I invoiced a customer for $150 (Invoice # 2022-09).  The customer paid me $200.  I clicked on Receive Payment for the invoice # 2022-09 and applied the entire $200 to the  account.  $150 was applied to the invoice which left a credit of $50.  As part of the Bank Deposit, I deposited the entire $200 that month.

The following month, I issued another invoice in the amount of $50.  I clicked on Receive Payment and applied the $50 credit.  When I went to Bank Deposit, there is a line item for a payment of $50 but I do not have a corresponding check or cash as the entire $200 was applied the following month.

How do I remove the $50 from the Bank Deposit while still assuring the customers invoice reflects paid for the $50 credit?

Hector

Hector

Glad to see you in this thread, Hector. I’ve come to show you a way how to properly manage customer credits in QuickBooks.

You don’t need to remove the $50.00 from your bank deposit. You’ll want to create a delayed credit to your customer instead. This way, you can apply the said credit to their current invoice.

Here’s how:

1. Open your QuickBooks account, then select the + New button.
2. Click Delayed credit.
3. Select the customer's name.
4. Enter the details. Make sure the date you select is the same as when you receive their payment.
5. Press Save and close.

Once done, you can now add the delayed credit to their new invoice. Before that, you need to delete the invoice and payment ($50.00) you entered to prevent duplicates. Then, follow the outlined instructions below:

1. Click + New option and then tap Invoice.
2. Select the customer. This opens a window with all open transactions for them.
3. Find the delayed credit and select Add.
4. Fill out the rest of the form as needed and save it.

Check out this article to learn how and when to give credits to your customers: Create and apply credit memos or delayed credits in QuickBooks Online.

Also, you can generate reports once everything is settled. It helps ensure books are balanced and accurate.

I’ll be more than happy to help if you have any other questions or concerns about customer credits. Just add them to your reply below. Take care always!