zeroing out a credit moved to another A/R

Hi there, gbonawitz.

To zero out the Credit memo and the General Journal 717, I suggest to link the two transactions. This way, you'll need to click the Use credit to apply to invoice option.

Here's how:

1. Click the credit memo in the Customer Information page to expand the page.

2. Select the Use credit to apply to invoice option at the upper right corner.

3. You'll be routed on the next page. Then put a checkmark in box beside date column under 717 transaction.

4. Click the Done button.

5. Click Save and close button.

Once done, you'll be able to see the transaction shows zero. I attach a screenshot below for visual reference.

If you encounter transactions get damaged, please check this article on how to fix this in order for the file to work properly: Fix damaged transactions in QuickBooks Desktop.

Please let me know if you have other concerns related with QuickBooks.

Interesting!  So I end up applying the credit to the G/L transfer (even though I use the "Use credit to apply to invoice" function.

OK - that worked :-) Thank you. !!!!

Related follow-up - what if the source of the original "credit" that I want to move is another G/L?

1) For the same customer there's an old G/L transaction that gave the customer a credit in "A/R Troop Activities" (the debit "account" was actually an expense category/item).

2) I can move the that credit to "A/R Registration" [for the same customer] using 2 offsetting G/L transactions...and then apply that credit amount to another invoice.  

However both transaction 729 and 694 end up still showing  "open" amounts ($14.12 and $-14.12 respectively).  Obviously they offset but is there some way to tie them together and have them show $0 under the "Open Balance" column?

It’s good to hear that worked, gbonawitz.

Your steps and screenshots are helpful for me to walk you through the steps in applying credits to your customer.

General Journal entries will indicate as a credit when they show as a negative amount. Based on the second step and screenshot you provided, it’s not necessary to enter the second General Journal. You might want to delete it. I till suggest reaching out to your accountant before making any changes. 

When applying a credit (G/L) you can use the Receive Payment option to zero out both the invoice balance and G/L. Let me show you how:

1. Go to the Customer menu and click Receive Payment.
2. Enter the customer’s name so the list of open invoice will show.
3. Enter the rest of the payment information and select the Invoice to be paid.
4. From the receive payment menu, click Discounts And Credits to apply the G/L.
5. Select the G/L and then click Done.
6. Hit Save & Close.

Let’s review your customer’s list of transactions to see that the G/L and Invoice has no balance (zero) anymore.

I'm here if you need anything else. Thanks!

Hi Catherine.

I can't get your solution to work...(I think) because using the credits function (the Invoice screen on my QBD has only "Apply Credits" ) will only pull up available credit items that in the same A/R as the invoice.

I have an open invoice in A/R: Registration.

I have a G/L credit in A/R: Troop Activities.  <-- I need to move this over to A/R: Registration, and that's why I had the two other G/L transactions:

• one to move the A/R: Troop Activities credit amount to a Swap account
• the other to move that same credit amount from Swap to A/R: Troop activities.

When I did this I was able to apply the credit $$$ amount...but I'm still left with the offsetting transactions shown in my post above that don't individually 0 out the Open Balance.

If I was moving a pure credit memo from one A/R to another, that works fine and I can get things to 0 out.  The difference here is starting with a G/L-based credit.