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ZackE
Moderator

Applying a credit memo

I appreciate you following up with the Community about this, mch2.

I'm happy to hear our Customer Care Team was able to assist with identifying and solving your credit memo problem.
 

You'll always be able to find many helpful QuickBooks Online resources in Intuit's help article archives.

 

I'll be here to assist if there's any additional questions. Have an awesome day!

smhonebrink
Level 1

Applying a credit memo

I have created a credit memo for an amount equal to  several open invoices for a customer.  I went to payments entered the amount of the CM selected the invoice to apply to this CM. went to the bottom and selected  the credited memo and hit save it showed the invoices as paid but left the CM open giving customer a - balance when it should be 0 . 

  removed this payment balance is 0 but invoices still open along with CM. 

AileneA
QuickBooks Team

Applying a credit memo

Hello, smhonebrink. 

 

I want to ensure that you'll be able to close the invoices along credit memo successfully. Let's get this sorted out. 

 

First, we need to make sure you linked the credit memo and invoice so the invoice link to the credit memo will close. 

 

Then, it's not necessary to receive the payments manually. Once it's already linked, the credit memo will automatically zero out, and the invoice status show as paid. 

 

You can read this article for more information about applying credit memos and how to delayed credits in QuickBooks Online. 

 

In addition, you can also run the Customer Balance Detail report. This will let you see if the customer still has existing credits or balances. Just go to the Reports, and then type Customer Balance Detail

 

Fill me in if you have additional questions. I'm always here to help. Wishing you all the best. Stay safe!

RR7620
Level 2

Applying a credit memo

Finally - a solution! Thank you!!!

Daezy
Level 3

Applying a credit memo

Yikes, after all of the above, this one finally worked!! QuickBooks needs to fix this. Way too convoluted and confusing. Many thanks!

floriveln_0223
Level 1

Applying a credit memo

Good Day. what would be the date of Credit Memo in QB. Is it the same with the date when you create the invoice or at the time when the customer cancelled the invoice? Thank You. 

Kristine Mae
Moderator

Applying a credit memo

You can use the date when the customer canceled the invoice, Floriveln_0223. Let me help you create the credit memo.

 

The transaction is used to reduce the customer's balance. You can use it as a payment for the customer's invoice. 

 

Here's how you can create a credit memo:

  1. Click the New button.
  2. Select Credit memo.
  3. Fill in the necessary fields.
  4. Click Save and close

I'll also add this article for more information: Create and apply credit memos or delayed credits in QuickBooks Online.

 

Feel free to let us know if you have other concerns. We're around 24/7 to help you. Keep safe!

CLC6
Level 1

Applying a credit memo

When a credit memo is created, what account is debited?

Jessica_young
Moderator

Applying a credit memo

Let's talk credit memos, CLC6.

When you create a credit memo it will create a negative amount in your Accounts Receivable register. You can choose what happens from here. There are a few options:

  • Retain as an available credit. QuickBooks enters a negative amount in your Accounts Receivable (A/R) register for the credit memo. You can use this credit as payment for another transaction. If you chose to retain as available credit, you'll see the available credits in the customer payment window.
  • Give a refund. You can issue the refund in cash or a check. If your customer used a credit card, learn how to refund a credit card payment.
  • Apply to an invoice. QuickBooks opens the Apply Credit to Invoices window. Select an invoice you want to apply this credit to.

You can read more information on this by checking out this article: Give your customer a credit or refund in QuickBooks Desktop for Windows.

 

Please let me know if you have additional questions on this or if I can help with anything else- I'm only a post away. Take care! 

 

florencefitzwater
Level 1

Applying a credit memo

We received an ACH payment covering several invoices in October.  The invoice in question was paid in full.  We just received another ACH from same customer for new invoices.  Included in this ACH payment was a Credit which applied to the october invoice.  How do I apply the credit to the old invoice since it is paid in full?

 

To complicate life, they have agreed to pay the money back on a future payment.

MaryLandT
Moderator

Applying a credit memo

I can share some insights on what will happen if you apply the credit to the paid invoice, florencefitzwater.

 

Applying the recent credit to the old invoice paid in full will create an outstanding balance on your customer's profile. 


You can delete the invoice payment, then apply the credit. However, if you're already reconciled your bank accounts in QuickBooks, I suggest consulting with your accountant first. Any changes to your book will impact the balance of your accounts.

 

In QuickBooks Online, credits are used for refunds or you can apply them to future invoices. Check out this link for instructions and detailed steps: Create and apply credit memos or delayed credits.

 

Let me know if you need additional information by commenting below. I'll be right here to help manage your customer's transactions.

userian
Level 1

Applying a credit memo

Thank you for your insightful explanation. However, here is my situation:

I was to make a refund to a customer which I raised a credit note in respect of. Upon the payment of the said amount to the customer, I haven't been able to apply the payment made to the customer against the credit note earlier issued to the customer.

ReymondO
QuickBooks Team

Applying a credit memo

Thank you for joining the thread, @userian.

 

Are you trying to apply the credit memo to the refund you've made with your customer? 

 

If so, this option is unavailable in QuickBooks Online (QBO). Credit memo and refund receipt are two separate transactions. 

 

You use a credit memo to reduce your customer's balance on their next invoice. On the other hand, a refund receipt is used when reimbursing a customer's money.

 

Since you made a refund to your customer, you can simply record it using the Refund receipt. Here's how:

 

  1. Click + New.
  2. Select Refund receipt or Give refund.
  3. Choose the customer you want to refund from the Customer ▼ drop-down list.
  4. Select the Refund From ▼ drop-down menu, then select the bank you deposited the payment for the invoice.
  5. Add all products or services the customer returned in the PRODUCT/SERVICE column.
  6. Make sure to fill the service date, quantity, rate, amount, tax, and other fields accordingly, then click Save and close.

 

If you already created a credit memo, you have to delete it. This way, it won't affect the balance of your customer. Just go to the Sales menu and select Customers. Then, click the name of the customer and open the credit memo. Once done, select More and choose Delete. Finally, click Yes to confirm.

 

I've also added some resources that you can use to help manage your sales transactions in the program:

 

 

Let me know if you need further assistance with this. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.

kazi
Level 1

Applying a credit memo

  •  search customer name and click on new transaction drop down Arrow then click on credit memo customers relevant information is already there  
  • Add product/service … Description for the memo .. Rate... QTY and sales tax (if applies) information, add Message displayed on credit memo 
  • Save and send it gives you print option if you need a copy  

 

Taos Herb Accounting
Level 1

Applying a credit memo

This seems to be a bug since the last unpdate!  You'd think Inutit would put more time into fixing such a universally problematic issue!  Many people are complaining and the "experts" just keep posting the same lame directions. INTUIT - listen!!!!

GoLee
Level 1

Applying a credit memo

I'm having this same issue.  Can't apply the credit to an open invoice.  I've read the thread, attempted the sequence, cleared my cache, tried three different browsers.  Unsuccessful.  Following these instructions:

https://quickbooks.intuit.com/learn-support/en-us/help-article/customer-refunds-credits/create-apply...

In item #7 making the 'amount received' field blank, QB removed the ticks for the outstanding invoice and the credit.  Very frustrating.

Maybelle_S
QuickBooks Team

Applying a credit memo

I want to ensure this is taken care of, @GoLee.

 

Since the issue persists after doing some troubleshooting steps, I'd recommend getting in touch with our Customer Support Team. This way, they can pull up your account in a secure environment and help check the main cause of the issue.

 

Here's how:

  1. Go to the Help menu.
  2. Click Talk to a human.
  3. Type your concern.
  4. Choose Chat with us or Have us call you.
  5. Enter the other information neded.

 

To ensure that you'll be assisted on time, please check out our support hours.

 

Additionally, feel free to visit our Help articles page if you have other QuickBooks concerns, such as setting up advanced reports, online banking, managing reconciliation, transactions, import and export data lists, etc.

 

I'm always here to help if you need anything else, GoLee. Take care.

Amos907
Level 1

Applying a credit memo

Quickbooks is the worst.

 

ctrom
Level 1

Applying a credit memo

This is apparently still correct. Clicking the "Receive Payment" button from the "+ New" menu and searching for the client allows the credit memos to be applied correctly. Selecting the "Receive Payment" option from the client's transaction list does not allow credit memos to be applied. Clearly a bug, shame it hasn't been addressed in the more than 2 years since it was first reported here.

mking716
Level 1

Applying a credit memo

Customer ordered product online and paid by credit card.  The order was placed through Shopify who got the credit card information and processed the charge.  The payment was put through on our shopify deposit.  Just after ordering the product, the customer cancelled the order.  On the same shopify deposit, the credit was deducted from the payout.

 

The invoice was voided in QBO.  I have a payment that is sitting as a credit on the account, and I have a refund on the account.  I would like to apply the refund to the payment, but cannot do so.

 

Any suggestions?

Angelyn_T
QuickBooks Team

Applying a credit memo

Glad to have you here today, King. I'll show you how to apply the refund transaction to the payment amount sitting as a credit on your account.

 

As an initial step, you need to open the refund transaction and update the account under Category to Accounts Receivable to close the pending or unapplied payment.

 

  1. Sign in to your account.
  2. Click on Sales on the left pane.
  3. Tap on the Customer menu.
  4. Select the name, then go to the Transaction List.
  5. Locate the refund entry, then update the account to Accounts Receivable.
  6. Hit on Save and Close.

 

After that, use the Receive Payment feature to link the two transactions.

 

  1. Go to the +New icon.
  2. Click on Receive Payment.
  3. Choose the refund entry and the available credits under the Outstanding Transactions and Credits sections.
  4. Click on Save and Close.

 

For more hints while handling customer refunds and payments, you can open these articles:

 

 

Aside from that, you can get more tips while working with your sales and other customer transactions in the future: Topics about your company's income and customers.

 

If you have follow-up questions while applying the refund and the payment entries, let me know by leaving a comment below. I'm more than happy to help you again. Keep safe!

 

If you have follow-up questions while applying the refund and the payment entries, let me know by leaving a comment below. I'm more than happy to help you again. Keep safe!

dorothy wai
Level 1

Applying a credit memo

If QBhas already auto applied to an open invoice, how can I change it to another invoice?

Archie_B
QuickBooks Team

Applying a credit memo

Hi there, dorothy wai

 

I'll guide you on how to allocate a payment to a different invoice within QuickBooks Online.

 

If QuickBooks has automatically applied a payment to an open invoice and you need to change it to another invoice, you can follow these steps:

 

  1. Go to Customers & leads, then Customers.
  2. Select the Customer's profile.
  3. Locate the payment and click View/edit option in the Action column.
  4. In the Recieve Payment window, under the Outstanding Transactions uncheck the invoice to unlink the payment.
  5. Put a checkmark or select the correct invoice to apply for the payment.
  6. Then, click on Save and close.

 

You can check out this article for an alternative option to apply a payment to the appropriate invoice: Fix a payment applied to the wrong invoice in QuickBooks Online.

 

In addition, if the payment is for another customer invoice, follow this link as a guide: How can I change a payment I've received to a different customer?

 

If you have any further questions or concerns about invoices and payments, don't hesitate to reach out to us. We are always here to help.

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