How can we provide a credit memo to a customer from a past payed invoice; an invoice, that we opted not to print a memo on?

Good day, @CLM1.

Depending on how the actual credit memo was processed, there are three ways to hands your customer's credit memo.

• Retain as an available credit
• Give a refund
• Apply to an invoice

Let me walk you through in creating a credit memo and applying it as a refund. Here's how:

1. Click the Customers menu.
2. Choose to Create a Credit Memo.
3. Select the name of the Customer: Job.
4. Enter the credit memo details.
5. Click Save and Close.

Once all the credit memos are created, you can now write a check with the total amount of the refund. Here's how:

1. Go to Banking.
2. Select Write Checks.
3. Choose the Bank account where the check will be posted.
4. Enter the name of the customer in the Pay to the Order of.
5. Type in the total amount of the refund or credit.
6. In the section for Memo, enter the Credit Memo numbers.
7. Go to the Expenses tab.
8. Choose Accounts Receivable in the Account column.
9. Enter the amount of the refund and the name of the customer.
10. Click Save and Close.

Lastly, to avoid getting open credit memos and unapplied refund checks, let's link the credit memo to the check. Here's how:

1. Click the Customer menu.
2. Choose Receive Payments.
3. From the Received from the drop-down, select the Customer.
4. Go to Discounts And Credits.
5. In the Available Credits section, mark the check you created, then select Done.
6. Select Save & Close.  

Once completed, you can run the Sales by Item Detail report. By doing so you'd see whether the credit memo is properly applied.

Don't hesitate to click the Reply button if you have other questions about creating a credit memo in QuickBooks Desktop. I'm always here to help.

Thank you, IamjuViel, for the detailed instructions.

Let me walk you through in creating a credit memo and applying it as a refund. Here's how:

1. Click the Customers menu.
2. Choose to Create a Credit Memo.
3. Select the name of the Customer: Job.
4. Enter the credit memo details.
5. Click Save and Close.

I don't understand Item 4 above, can you give more detail on this?

Hello there, CLM1.

Thank you for getting back to us.

Let me share with you more details about step 4: Enter the credit memo details.

When creating a credit memo, you'll need to enter the correct information within QuickBooks.

You may refer to the screenshot below for the detailed steps in creating a credit memo.

Feel free to visit our Community Help article to learn more about Invoices, sales receipts, receive payment, customers, vendors, clients, etc. that will help you run your business smoothly.

I'm only a few clicks away if you have any other questions. Take care!

Thank you, CharleneMae_F (QuickBooks Team);

I'm not connecting the dots: let me explain. I have a client that paid their invoice in February. They overpaid by $150.00. I was asked to leave the overpayment (Retain as an available credit) as credit for their next invoice, which I did. We sent out their March invoice, which was reduced by $150.00, owing to the credit that was applied, from February's overpayment. Then, they overpaid their March invoice (again) only this time by $14.00. I was asked to leave the overpayment (Retain as an available credit) as credit for their next invoice. 

All of their payments have already been deposited and recorded as received in my Business account and have been reconciled. However, now I'm being asked to provide them with a Credit Memo for both overpayments because of a new process or else all of our invoices that we send to them will continue to be overpaid.

I'm just not sure how to provide them with a Credit Memo after the facts mentioned above. When I tried to provide a Credit Memo, there account showed (-1,500.00) in their favor. I had to go in and VOID the Credit Memo so I could bring their account back into balance.

Any help would be appreciated.

I appreciate the details a lot, @CLM1.

I suggest sending a transaction statement to your customer. This way, they can check which invoices the credit was applied. Please make sure to adjust the date to show those transactions from months ago.

Here's how:

1. Go to the Customer menu.
2. Select Create Statements.
3. Adjust the date and select the customer's name.
4. Click Email/Print.

I've added an article as your reference in setting up, record, and manage upfront deposits: Manage upfront deposits or retainers.

Just in case you wanted to bill your customer on a monthly basis, you can refer to this article: Create Statement Charges.

Please feel free to leave a message to this post if you need further assistance. I'll be around to help. Have a good one!

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@Jovychris_A wrote:

I appreciate the details a lot, @CLM1.

 

I suggest sending a transaction statement to your customer. This way, they can check which invoices the credit was applied. Please make sure to adjust the date to show those transactions from months ago.

 

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What if the customer wants a CREDIT MEMO not a statement.

Thank you for joining the thread, @jc4OW.

You'll want to follow the steps provided by my colleague IamjuViel above if your customer wants a credit memo for their overpayment. This way, it'll leave a credit to the customer and have the option to apply it to an invoice on their next purchase.

I'm adding this article for more guidance: Give your customer a credit or refund in QuickBooks Desktop for Windows.

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

Please know that I'm just a reply away if you need any further assistance managing your customer's credit.

What if you haven't applied the credit to any invoices? If the credit is just hanging out, waiting for the customer to decide what invoice they want it applied to? Then how can  you make a credit memo without having a double credit (one from the original overpayment and then one from the credit memo just issued)?

Hello, jc4OW.

I appreciate taking the time to follow-up with your concern on the credit memo. I'll help you out in managing the credit transaction. 

Similar to CLM1's situation, I take it that you've also processed the overpayment through the Receive payments screen. 

As you've noticed, the credit memo won't show in the Customer's transactions list. So, one way to prevent a double credit is to print the memo directly from the Payment transaction itself. Here's how: 

1. Go to the Customers menu, then choose Customer Center.
2. Find and select the customer.
3. Open the payment transaction. 
4. Click the arrow icon below the Print button.
5. Select Print Credit Memo. 

Save it as a PDF, then send it to their email address manually. Also, this option will only show if the Payment transaction has an overpayment attached to it. 

It will just print an "Outstanding Credit" information. This won't show the details on where the credit was applied or where it was created. If your customer needs a more detailed transaction, then a statement will work well. 

Though, you'll have the option to send both the statement and the credit memo. 

I'll link the articles again if you need help managing your customer credits or statements:

• Create statement charges
• Give your customer a credit or refund in QuickBooks Desktop for Windows

If you need assistance running reports such as Profit and Loss or for your sales transactions, I recommend checking out our articles in the Reports topic page. They can help you build specific and detailed reports in QuickBooks Desktop. 

I'll share what else you want to know in QuickBooks Desktop. If you have other concerns with your customer transactions, let me know. I'll assist you again. 

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@jamespaul 

THANK YOU so very much. I got it finally! I really appreciate your help

You're welcome, jc4OW.

If you have other concerns, please let me know. I'd be happy to help out again. 

I had the very same question.  My workflow was to create a credit memo for the overpayment amount which was fine.  When I applied the credit memo to the following invoice payment, the original overpayment amount remained in the clients balance.  So it appears by creating the credit memo which the client requested caused a duplication of the amount. 
Now that you have spelled that out, when I go to the customer payment and select print credit memo, it comes up with the "Print One Credit Memo" menu and does not provide a PDF option.  Just select a printer name option.  The PDF is needed to send the credit memo to the client. 

If you could add the option under "Email" to send credit memo similar to under the "Print" menu, problem solved. 
Please advise.  this is on Quickbooks Desktop Prop Plus 2023

Let me provide information about why you're experiencing this, @ScottD. 

In QuickBooks Desktop (QBDT), when we process overpayments and want to apply them to future invoices, we don't have to create a credit memo. Instead, QuickBooks automatically detects the overpayment and recognizes it as a credit, and will be applied to an open invoice if you haven't processed a refund. Thus, generating a credit memo caused a duplication of the amount. 

Regarding the option to save the customer payment as a PFD file, this isn't available yet. However, we would love to hear your suggestions about having this option and recommend submitting feedback. This way, we can enhance your experience with QBDT and this feature recommendation will be shared with our Product Development team.  

Here's how:  

1. Go to the Help option.
2. Choose the Send Feedback Online option.
3. Select the Product Suggestion option. A pop-up window displays.
4. Enter your feedback suggestion.
5. Click the Send Feedback button. 

For future reference about managing your credits to your customers in QBDT: Give your customer a credit or refund in QuickBooks Desktop for Windows. 

If you have follow-up questions about handling overpayments in QBDT, comment below. Stay safe always!