Creating and recording a customer credit

SarahDC · ‎February 19, 2022

Hi -

I have a customer that pays multiple invoices with one check. Recently, they sent a large check that covered multiple invoices but one of the invoices that this check covered was already paid. They asked me to give them a credit. Can someone explain from beginning to end how to create a customer credit and then match that in the banking area, so I can match and categorize this payment?

Thanks,

Sarah

Giovann_G · ‎February 20, 2022

Welcome back, Sarah.

Yes, you're correct. You can match the delayed credit using the Resolve the difference feature by turning on the radio button. If you're unsure which category to use, I recommend reaching out to your accountant to ensure your books are accurate.

Here's how:

Go to the Banking menu.
Locate the check payment transaction.
Click on Find Match to add those invoices.
After that, Toggle the Resolve radio button.
In the Payee column, choose the customer.
Select the right category, consult with your accountant if you're unsure which category to use.
Once done, hit Save.

You can add the delayed credit to future invoices. Just click the Add button once you create a new invoice for that specific customer. Please see the image below for your reference.

Feel free to visit this article for assistance in ensuring that QuickBooks balance matches your bank and credit card statements: Reconcile an account in QuickBooks Online.

Let me know if you have further assistance with delayed credit or bank feeds. We're always here to help you.

View solution in original post

katherinejoyceO · ‎February 19, 2022

Thanks for visiting the Community today, @SarahDC. I'm here to guide you in using a credit memo for a customer that overpays you.

When a customer paid more than what he owed, you can use a credit memo. Once created, you can apply the credit memo to an open invoice for that customer at any time.

Here's how:

Select + New, then select Credit memo.
Select the customer's name in the Customer dropdown, then enter the credit memo details, such as the date and the amount. You can also create a custom credit service item to add it to credit memos as a single line item.
When you're done, select Save and close.

Then, apply the credit memo to an invoice:

Select + New, then select Receive Payment.
In the Customer dropdown, select the customer.
In the Outstanding Transactions section, select the open invoice you want to apply the credit memo to, then select the credit memos you want to apply.
For the open invoice in the Payment column, enter how much of the credit you want to apply.
Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
Fill out the rest of the form, including the Payment date.
Make sure the total is correct after applying the credit memo, then click Save and close.

You can also explore another option which is to create delayed credit if you only want to track a customer's credit for future use in this help article: Create and apply credit memos or delayed credits in QuickBooks Online.

Visit us and post again if you have additional questions. I'll be here to guide you more.

SarahDC · ‎February 20, 2022

Thanks for the help - the delayed credit memo is what I needed because the client wishes me to hold the credit to apply to an upcoming invoice.

The part of the equation that I'm still unsure about is regarding how to match this transaction in my banking. The check in question covers 27 transactions, including the credit memo. I have matched 26 of the transactions but don't know how to match this delayed credit memo to close out this check.

Should I put the delayed credit in as a resolving transaction and if so, what category should I put it in as?

Thanks again for any assistance.

Sarah

Giovann_G · ‎February 20, 2022

Welcome back, Sarah.

Yes, you're correct. You can match the delayed credit using the Resolve the difference feature by turning on the radio button. If you're unsure which category to use, I recommend reaching out to your accountant to ensure your books are accurate.

Here's how:

Go to the Banking menu.
Locate the check payment transaction.
Click on Find Match to add those invoices.
After that, Toggle the Resolve radio button.
In the Payee column, choose the customer.
Select the right category, consult with your accountant if you're unsure which category to use.
Once done, hit Save.

You can add the delayed credit to future invoices. Just click the Add button once you create a new invoice for that specific customer. Please see the image below for your reference.

Feel free to visit this article for assistance in ensuring that QuickBooks balance matches your bank and credit card statements: Reconcile an account in QuickBooks Online.

Let me know if you have further assistance with delayed credit or bank feeds. We're always here to help you.

SarahDC · ‎February 20, 2022

Thanks for all the help! I used the resolving transaction and was able to close the check.

Best,

Sarah

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