Level 1

I have a customer with a credit memo. He wants the credit put on his credit card. How do I do that.

 
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QuickBooks Team

Sales & Customers

Hello, 

 

A credit memo is a balance that carries over from the customer's last transaction, to be applied to future sales. Credit memos and refunds work to accomplish the same goal, which is to give your customer back funds that they've paid to you either by mistake, or that are now supposed to be returned to them. I'll help explain how these funds are dealt with in QuickBooks Online. 

 

If you're going to be paying your customer these funds without having them applied to a future sale, I'd recommend issuing them a refund, rather than a credit memo. Here's more information about how to record a customer refund instead: Record a customer refund

While you're able to record this movement of funds in your QuickBooks account, the actual money movement will have to occur outside the system. I recommend using e-transfer if you're trying to electronically deposit the money into your customer's account. 

 

I hope this helps you get back on track. If you have any other questions, please reach out to our tech support team

 

Have a great week. 

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Level 1

Sales & Customers

Hi,

 

I already issue all the credit memo to customers. But then they change their mind and want a refund. My client already paid them via chequing account. How can I transfer the credit memo to refund and match them with bank transaction?

We have a list of about 200 customers have credit so it would be hard if I delete the credit memo and issue the refund. Please advise. 

QuickBooks Team

Sales & Customers

Hi lynnphtr1,

 

Thanks for joining us here. Choosing the proper transaction type when recording your transactions is important to keep your books accurate. I'll be happy to share more on this.

 

After saving a transaction in QuickBooks Online under a specific transaction type, you can't switch that transaction to another type. If you have customer credits memos instead of customer refunds in the system, you'll have to delete and recreate those transactions. In situations like this, the Audit log can come in handy as you can view information about deleted transactions and use those to recreate them under the proper transaction type. Here's an article to assist you with that: Use the audit log to re-enter deleted transactions

 

Feel free to also explore our partner apps to assist you with your tasks.

 

I hope this helps! Have a great day.

Level 1

Sales & Customers

Thank you for your help.

Here is the other problem. When I issue the credit memo, it will offset my sales account and leave a negative amount in Accounts Receivable.

So when I apply the credit, it should affect accounts receivable balance (goes up) and clear the negative amount in AR.

But when I check the transaction journal, it did not affect the AR. The credit is applied but the balance of AR is still the same. Please advise. 

QuickBooks Team

Sales & Customers

Hi lynnphtr1,

 

Making sure your account is showing the correct information is an important part of bookkeeping and I'd be happy to go over this with you.

 

If your AR account is not balancing after you create your credit memo this is usually due to not linking the refund to the transaction. In order to link them you'll need to follow these steps.

 

  1. Select + New.
  2. Select Receive payment or Receive invoice payment.
  3. Select the same customer you used for the cheque or expense.
  4. Fill out the other fields as you see fit.
  5. Under the Outstanding Transaction section, select the checkbox for the Expense or Cheque you created.
  6. Make sure the payment is equal to the open balance, then select Save and close.

Once the steps are complete your AR account should show the correct balance.

 

If you have further questions I'd recommend contacting our support team using one of the following options.

 

Schedule a Callback or Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat. Support is available from Monday to Friday between 9 a.m. and 8 p.m. ET.

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Hope this was able to help!