How do i set up a credit note?

Welcome to the Community, @winstonshippey-i.

Let me help you how to set up a credit note in QuickBooks Online (QBO).

In QBO, you can give credit using a credit note or delayed credit. Here are the key differences:

Credit note

• If your customer wants to immediately reduce their current open balance, use a credit note.
• Your customer can use their credit note as payment for an invoice. They can use all of their credit notes or a portion of it.
• You can apply a credit note when recording payment for a customer’s invoice.
• Credit notes impact sales reports, even if you don't apply them to invoices.

Delayed credit

• If you want to track a customer's credit for future use, and they don't want it to immediately affect their current open balance, use a delayed credit.
• Your customer can use their delayed credit to reduce the balance of an invoice.
• You can add delayed credits to future invoices as a line item.
• Unlike credit notes, delayed credits don't impact sales reports until you apply them to invoices.

To set up credit note. Here's how:

1. Select +New.
2. Select Credit Note.
3. From the Customer dropdown, select the name of your customer.
4. Enter the credit note details, such as the date and amount.
5. Ensure that the details are correct. Tap Save and Close.

To set up delayed credit. Here's how:

1. Select + New.
2. Select Delayed credit.
3. From the Customer dropdown, select the customer's name.
4. Enter the details, such as the date and the amount.
5. When you're done, select Save and Close.

For more detailed information, refer to this article: Create and apply credit notes or delayed credits.

Additionally, you might want to check these articles to guide you if you want to transfer credit from one customer to another and to help you match your bank and credit card statements.

• Transfer a credit.
• Reconcile an account in QBO.

Please leave a comment below if you have further concerns about setting up a credit note. I'll be here to assist you.