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A
ametz1201
February 5, 2024
Question

Credit

  • February 5, 2024
  • 1 reply
  • 0 views

I received a payment (check) from a customer and there is credit on there for a Dec invoice they already paid in full. (They are paying one other invoice on this check also that is due) They are saying that the invoice is tax exempt so they looks like they put a credit memo on the check for the amount.  So how do I enter that credit on my end in QBO so I can apply the check?

1 reply

I
IrishNinoJ
February 5, 2024

Hello there, ametz1201. I'm here to ensure your credit memo gets applied to its corresponding check so it gets recorded accurately in QuickBooks Online (QBO).

 

If you turn on the auto-apply credits, QuickBooks will apply the credit for you. If you turn it off, here's how to manually apply a credit memo to an invoice.

 

  1. Select + New.
  2. Choose Receive payment.
  3. In the Customer dropdown, select the customer.
  4. In the Outstanding Transactions section, select the open invoice you want to apply the credit memo.
  5. In Credits section, select the credit memos you want to apply.
  6. For the open invoice in the Payment column, enter how much of the credit you want to apply.
  7. Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
  8. Fill out the rest of the form, including the Payment date.
  9. Make sure the total is correct after applying the credit memo.
  10. Once done, select Save and close.

 

In addition, I've added this article if you want to learn how to enter a prior balance for a customer that owes you money or a vendor you need to pay: Manage outstanding balances for customers and vendors in QBO.

 

We'll be on the lookout for your reply if you have further assistance managing your customers credit in QBO. Take care.

A
ametz1201Author
February 5, 2024

There is nothing to apply it to when I receive the check. That is what I am trying to figure out since now looking at my register with the two transactions, debit and credit for the same thing.  I was just following what the QBO help told me to do.  The vendor sent us a check for parts returned to them that we paid COD for.  So I was just looking at my register and I see there are two transactions there for each check that I added the "resolving transactions" when matching the deposit.  There is a credit and debit in the register and that doesn't see right.

So I a trying to find out the correct way to deal with this when I receive a check for a parts refund from our vendor.

Thank you.

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