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Level 1

How to apply a credit memo to an open customer invoice

I am on QB Premier 2015.  I created a customer credit memo by opening the original invoice, clicking on refund/credit which allowed me to edit the items on the original invoice to create my credit memo.  When I finished and saved the credit memo, it asked me if I wanted to apply the credit memo to an open invoice.  I said I did and it responded that that customer did not have an open invoice to apply the credit to.  The original invoice is still open and has a partial payment applied to it.  Is there another process to apply the credit memo to the open invoice balance? Should I create the credit memo another way?  The current customer balance is correct after creating the credit memo.

Solved
Best answer December 10, 2018

Best Answers
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Level 15

How to apply a credit memo to an open customer invoice

"Could it because there is a partial payment applied to the invoice?"

No.

The invoice has the icon at the top, to Apply available credits.

The credit memo has the icon at the top, to Apply to open invoices.

"Both the invoice and the credit memo are under the customer name on the open invoices report."

That means they each have an Open Balance and should be applied to each other.

Are you using Multiple AR Accounts?



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6 Comments 6
Highlighted
Level 15

How to apply a credit memo to an open customer invoice

"Could it because there is a partial payment applied to the invoice?"

No.

The invoice has the icon at the top, to Apply available credits.

The credit memo has the icon at the top, to Apply to open invoices.

"Both the invoice and the credit memo are under the customer name on the open invoices report."

That means they each have an Open Balance and should be applied to each other.

Are you using Multiple AR Accounts?



View solution in original post

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Level 1

How to apply a credit memo to an open customer invoice

THANK YOU! The answer was the credit memo was on a different A/R account. As soon as I changed the A/R account on the credit memo I could apply it to the original invoice. I learned something new in QB today! Yay!
Level 2

How to apply a credit memo to an open customer invoice

I’ve done all that, and the invoice does not reflect the credit, although the account does.

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QuickBooks Team

How to apply a credit memo to an open customer invoice

Hello there, @Joy gardener.

 

You'll need to apply the credit to your open invoices to mark them as paid. Let's get started.

 

Here’s how:

  1. Go to the Customers menu.
  2. Select Customer Center.
  3. Locate the Customer’s name.
  4. Open the Customer’s Invoice.
  5. At the top right, click Apply Credit.

Capture123u.PNG

 

Also, you can preview the invoice to see applied the credit memo. I’ve attached a screenshot for your visual reference.

Capture98752.PNG

 

Lastly, you can access the Open balance report of the customer. From there you can check the payment you made.

  1. Go to the Customers, then click the Customer's Center.
  2. Locate the Customer's name.
  3. Select the right click of your mouse.
  4. Click Open Balance.

For additional insights, you can read this article: Record a credit memo or refund in QuickBooks Desktop.

I'll be around to help you if you need more help. Have a nice day!

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Level 2

How to apply a credit memo to an open customer invoice

Thanks, Grace! I figured out that I needed to edit the Invoice template to include the Payments and Balance Due fields to show previous payments/credits applied to the invoice, and the final balance due.  I was trying to use the Invoice like a statement, which I can't do. Activating the fields works well.

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Moderator

How to apply a credit memo to an open customer invoice

Hi there, Joy gardener.

 

Good job! You're able to figure out how to reflect the credit on your invoice. I appreciate you for sharing this with us for this may help other users in QuickBooks Desktop.

 

In behalf of my colleague GraceC, I'm excited to share the following resources to help you navigate and learn the features and functions of QuickBooks:

If I can be of help with something else, please don't hesitate to get back to me. I'm always happy to assist.

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