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.

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.

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:

• Enter and apply a credit memo or delayed credit

• Customize invoices, estimates, and sales receipts in QuickBooks Online

• Use and customize form templates

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.

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 ?

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: 

• Create and apply credit notes or delayed credits in QuickBooks Online
• Common custom reports in QuickBooks Online

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

When I raise a credit note, I am not seeing the 'link credit' window. How can I match to an open invoice?

I can help you fix the To Link Invoice window issue, Jonpaul.

The auto-apply credit feature may be enabled. Once activated, this feature will automatically apply the credit to the next invoice you create for the same customer.

Let's check if this is the case. Here's how:

1. Go to Settings and select Account and settings.
   
2. Choose the Advanced tab.
3. In the Automation section, click the pencil icon.
4. Confirm if the Automatically apply credits are enabled.
5. Click Save, then Done.
   

For your reference, feel free to check this guide: Create and apply credit notes or delayed credits in QuickBooks Online.

Additionally, read this link for more information if you need to void or refund payments you've processed through QuickBooks Online: Void or refund customer payments in QuickBooks Online. 

Please let me know if you continue to have issues with credit note. I'll be here every step of the way. Take care!

Hi,

I have changed this setting as advised, but still not getting the window.

I’m dropping by to provide additional details about credit notes in QuickBooks Online (QBO), @Jonpaul.

There are two ways we can apply the credit note to the customer's invoice. The first one is to use this manually. If you have an open invoice from a particular customer and decided to record its payment. You can locate the credits available under the Outstanding Transactions including the 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 to which you want to apply the credit note.
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 whether the total is correct after applying the credit note.
7. Click Save and close.

If you’re not seeing the credit note upon receiving the payment, it could be that you enabled the option to automatically apply this to an open invoice. If you prefer to do it manually, you can turn it off by following the steps below:

1. Go to the Gear icon and select Account and settings.
2. Navigate to the Advanced tab and look for the Automation section.
3. From there, tap the pencil icon to Edit and make changes.
4. Turn off the Automatically apply credits.
5. Select Save, then Done.

You can also check out this article for more details: Create and apply adjustment notes or delayed credits in QuickBooks Online.

Let me know if you have more concerns with credit notes. The Community always has your back. Have a good one!