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tina1969
Level 1

Journal Entries for P & L

Is there a way that we can make a journal entry to credit a customers paid invoice?

1 Comment 1
GenmarieM
QuickBooks Team

Journal Entries for P & L

We can use the credit memo or a refund receipt to credit a customer's paid invoice, tina1969. I'd be glad to guide you through the steps.

 

A credit memo and a refund receipt are the best options to credit your customer's paid invoice. Let me guide you through the steps.

 

Here's how to create a credit memo:

 

  1. Select + New and click Credit memo.
    1.png
  2. From the Customer dropdown, select the customer's name.
  3. Enter the necessary information.
  4. When you're done, select Save and close.
    2.png

 

To apply credit:

 

  1. Select + New and click Receive payment.
    3.png
  2. From the Customer dropdown, choose a customer.
  3. In the Outstanding Transactions section, choose the open invoice to which you want to apply the credit memo.
  4. In the Credits section, select the credit memos you wish to apply.
  5. For the open invoice, enter the credit amount you wish to apply in the Payment column.
  6. Leave the Payment methodReference noDeposit to, and Amount received fields blank.
  7. Fill out the necessary information.
  8. When you're done, select Save and close.
    4.png

 

Additionally, you can process a customer refund using refund receipt when you need to return money to a customer. Here's how:

  1. Go to + New, then select Refund receipt.
  2. Select the Customer and click the customer you want to refund.
  3. In the Refund From choose the bank you deposited the payment for the invoice to.
  4. Add all products or services the customer returned in the Product/Service column.
  5. Enter the necessary details, then select Save and close.

 

However, if you want to create a journal entry to credit your customer's paid invoice, I'd be glad to guide you through the steps. Also, I suggest reaching out to your accountant for the Accounts Receivable to ensure the accuracy of your books. If you don’t have one, you can find an expert here.

 

Here's how to create a journal entry:

 

  1. Go to +New under the Other column.
  2. Click on Journal entry.
    5.png
  3. Enter the Journal date and amount of credits.
  4. Choose your customer under the Name column.
  5. Fill out other necessary information.
  6. With the Account, I suggest reaching out to your accountant for accuracy
  7. Once you're done, click Save and close.
    6.png

 

Additionally, I've added this article as your reference in matching your bank transactions to avoid duplicates: Match online bank transactions in QuickBooks Online.

 

Please feel free to comment if you have additional concerns about crediting your customer's paid invoice or other related QuickBooks tasks. I'm always ready to help.

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