cancel
Showing results for 
Search instead for 
Did you mean: 
chandaplan
Level 1

Problem with applying a credit memo. It shows up as money to deposit even though when I applied the credit memo it shows the amount received as $0?

A credit memo was created for $15. Using Receive Payment, I applied the credit memo towards and outstanding invoice of the same amount so the amount received was $0. I went to make a bank deposit and notice that this transaction shows up as $15 to deposit?
Solved
Best answer October 29, 2020

Best Answers
JonpriL
Moderator

Problem with applying a credit memo. It shows up as money to deposit even though when I applied the credit memo it shows the amount received as $0?

Hello @bhs1006,

 

Let me help share information about how you can close out open invoices with a journal entry credit.

 

When a journal entry is created as a payment for an open invoice, it'll automatically post the amount to your bank account, and no need to deposit it. With this, you can consider reviewing the journal entry credit you created and make sure you've used the correct accounts to close out your open invoices.

 

That being said, here's how a journal entry credit post a payment to your customer's open invoices: How to apply a journal entry credit to an invoice?

 

Additionally, I've also included this helpful article for the steps in creating a document containing all the transactions you've made with your customers: Create and view customer statements.

 

If there's anything else that I can help you with, please let me know in the comments. I'll be here to lend a hand. Stay safe!

View solution in original post

5 Comments 5
JonpriL
Moderator

Problem with applying a credit memo. It shows up as money to deposit even though when I applied the credit memo it shows the amount received as $0?

Hello @chandaplan,

 

Let's review the details of the transaction in your bank deposit so we can identify if it is the payment with a credit memo applied or not.

 

When a payment is created, it'll show up in a bank deposit when you use your undeposited funds account as the affecting payment account. With this, consider opening the payment in the Bank Deposit window and inspect the Deposit to account. Make sure it uses your checking or any bank account so it won't show up in the bank deposit.

 

In addition, make sure it isn't a duplicate transaction so it won't post a double entry in your customer's balance or sales account. If it is a duplicate, open the payment and click Delete to remove it from your customer's balance.

 

Additionally, I've got you this helpful article for the steps about sending a document to your customer containing a list of the transactions they've made: Create and view customer statements.

 

You can always leave a comment below if you have any other questions. Stay safe!

bhs1006
Level 1

Problem with applying a credit memo. It shows up as money to deposit even though when I applied the credit memo it shows the amount received as $0?

I used journal entries to pay for some customer invoices years ago.  I noticed these invoices still show as overdue so I read where you can apply the credit (which was created from the journal entry).  Now that I have applied all the credits to the open invoices, there are deposit amounts.  These amounts aren't really deposits so what do I do with them to remove them?  

JonpriL
Moderator

Problem with applying a credit memo. It shows up as money to deposit even though when I applied the credit memo it shows the amount received as $0?

Hello @bhs1006,

 

Let me help share information about how you can close out open invoices with a journal entry credit.

 

When a journal entry is created as a payment for an open invoice, it'll automatically post the amount to your bank account, and no need to deposit it. With this, you can consider reviewing the journal entry credit you created and make sure you've used the correct accounts to close out your open invoices.

 

That being said, here's how a journal entry credit post a payment to your customer's open invoices: How to apply a journal entry credit to an invoice?

 

Additionally, I've also included this helpful article for the steps in creating a document containing all the transactions you've made with your customers: Create and view customer statements.

 

If there's anything else that I can help you with, please let me know in the comments. I'll be here to lend a hand. Stay safe!

View solution in original post

lildeb58
Level 1

Problem with applying a credit memo. It shows up as money to deposit even though when I applied the credit memo it shows the amount received as $0?

I followed these steps and now it shows a deposit to my checking account in quickbooks.  Now what do I do?

AileneA
QuickBooks Team

Problem with applying a credit memo. It shows up as money to deposit even though when I applied the credit memo it shows the amount received as $0?

Hello, lildeb58. 

 

Thank you for following the steps above. Once the deposit is shown in the correct checking account, It's the final step to ensure the money you receive from payments is accurately recorded. 

 

For additional information, you can click this article: How to Record Bank Deposits in QuickBooks Online. This also provides details on how the Bank Deposit Workflow is unique to QuickBooks. 

 

You can also run the Deposit Detail report . This will give you the details of all the deposits, including the date, customer or vendor, and amount. Just go to the Reports menu and type in Deposit Detail in the Search bar. 

 

We're always here if you need further assistance. Have a good day and stay safe!

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up