There are a few customers who have credits on their accounts with no invoices to which they can be applied. Several of these are a few years old, some of the customers are inactive, and I have no idea what the circumstances were that would've caused a payment to be recorded with no invoice. But we want to try to clean up the reports if possible. Would it be ok to just make up dummy invoices and then apply the credits? Or is there a way to clean up via journal entries?
Solved! Go to Solution.
Good day, @MonicaG.
It's nice to see you again in the Community. I’m here to help clean up your customers’ credits in QuickBooks Desktop.
You need to reactivate the inactive customers so we can start entering an invoice to offset the payments. Here’s how:
- Go to Customers menu and select Customer Center.
- Under the Customers & Jobs tab, select All Customers instead of Active Customers.
- Click the X icon next to the customer name.
- Hit Yes on the pop-up message.
Now, you have to create an invoice for your customers with available credits. Let me show you how:
- Go to Customer menu and select Create Invoices.
- Select the customer and enter the necessary information.
- On the Item column, click Add New.
- Choose Other Charge as your Item Type and enter Item Name/Number.
- On the Account drop-down, select the appropriate account. I suggest consulting your accountant to make sure the chosen one is the best fit.
- Hit OK.
- Enter Description, Rate and Amount.
- Click Save & Close.
For reference, take a look at this article: Create an invoice in QuickBooks Desktop.
Once done, apply the credits to the invoices by following the steps below.
- Go to the Customers menu and select Receive Payments.
- Select the transaction and click Apply Credits.
- Hit Save & Close.
Check out this article for more information: Record payment for an invoice.
That should get you pointed in the right direction. Touch base with me here should you need further assistance. Wishing you and your business continued success!
Re: Can't apply credits
You’re always welcome, @MonicaG.
Please let me know how it goes once you tried the steps above.
For future reference, check out the credit memo or refund article in QuickBooks Desktop.
That should do it. Post again in the Community if you need anything else, I’m always here to help. Have a good one!