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azhlm3
Level 2

Credit Notes on QBO

How can I create a credit note from an invoice so that the credit note is linked to that invoice number for reference? 

Is there a way to view a list of all the credit notes I've created?

 

5 Comments 5
AlexV
QuickBooks Team

Credit Notes on QBO

Hi azhlm3!

 

You can create a credit note and apply it directly to open invoices. Allow me to show you how to do it.

 

Follow these steps:

  1. Go to the + New button and select Credit note.
  2. Select the Customer. From the To Link Invoice window, click Add.
  3. Ensure that the details are correct. Tap Save and close.

 

Also, we can pull up the Transaction List by Customer report. This will show us all the customer transactions you've created including the credit notes. You can search it on the Reports menu. If you need to edit it, please check this link: Customise reports in QuickBooks Online.

 

Need to link your bank account? Here is the article for your reference: Connect bank and credit card accounts to QuickBooks Online.

 

Keep on posting here if you need more help. We'll respond as soon as we can.

azhlm3
Level 2

Credit Notes on QBO

Thanks for your response AlexV.

 

Is there no way to create a credit note directly from a closed invoice? I'm trying to link the closed invoice to the credit note for reference, so that I know where the credit is coming from.

 

In my "To link invoice" window, I get the message "No transaction available to link. " Am I missing something?

 

Otherwise, using the Reports module to view list of credit notes worked.

 

 


 

LollyNino_C
QuickBooks Team

Credit Notes on QBO

You came to the right place @azhlm3

 

I have an idea of how to handle your credit memos. This feature is not available in QuickBooks Online. What you can do is to apply a credit memo to an open invoice.

 

Here's how:

 

  1. Click + New.
  2. Select Credit memo.
  3. In the Customer dropdown, select the customer's name.
  4. Enter the credit memo details, such as the date and the amount. Tip: You can create a custom credit service item so you can quickly add it to credit memos as a single line item.
  5. When you're done, select Save and close.

You can also check this article for more information:

Reach out to me if you have any other further questions about credit memos. I’ll be right here to answer them for you. Have a great rest of the day.

asti-liebrecht
Level 1

Credit Notes on QBO

Credit note was raised but not linked to the actual invoice.

How do I apply that credit to the invoice which reflects a balance owing equal to the credit note total ?

Catherine_B
QuickBooks Team

Credit Notes on QBO

I can show you the easy steps in applying the credit to your open invoice, asti-liebrecht.

 

Here's how to manually apply a credit note to an invoice:

 

  1. Select + New and click Receive payment.
  2. Click the customer's name and enter the date.
  3. In the Outstanding Transactions section, select the open invoice you want to apply the credit note to.
  4. From the Credits section, select the credit notes you want to apply.
  5. For the open invoice in the Payment column, enter how much of the credit you want to apply.
  6. Fill out the rest of the form and review the total is correct after applying the credit note.
  7. Click Save and close.

If you want the system to automatically apply credit notes to customers' balances or open invoices. To turn on the credit note auto-apply feature:

 

  1. Go to the Gear icon and select Account and settings.
  2. From the Advanced menu, select the Automation section.
  3. Select Automatically apply credits.
  4. Click Save, then Done.

For more details in handling your credits and sales transactions, you can use these links: 

 

Let me know if your have other questions in managing your sales transactions. I'm just here to help. Take care!