Skip to main content
C
coastalcommunity
October 12, 2023
Question

Can I match a bank transaction to a previously issued credit memo?

  • October 12, 2023
  • 1 reply
  • 0 views
A customer overpaid an invoice and did not want a refund but rather credit to use on the next months payment. I matched the payment to the then open invoice to close it, applying part of the payment received, and created a credit memo for the remaining overpayment and sent a digital receipt to the customer as they had requested. 

The following month I applied the credit memo to their new invoice and they submitted payment for the remaining amount. Now I have a bank transaction that is partially matched so it can't be excluded, and I can't figure out how to match the remainder of that original payment to the credit memo (same values). How do I match these so I can reconcile my books?

1 reply

R
Rwier
October 12, 2023

In QB online you will have to pull up the credit amount, go to Customer and in the "type" column, select Credit Memo. You can either apply it or unapply it.

E
Ethel_A12
October 12, 2023

Hello there, @coastalcommunity.

 

I'll help you match the payment in your bank feeds to your QuickBooks Online transactions.

 

In QuickBooks Online, transactions can only be matched with exact amount. Before we proceed, I would like to ask how did you partially matched the payment which is more than the invoice amount?

 

When the customer overpaid, you don't have to create a credit memo. Once you create a Receive payment transaction, enter the full amount, and the remaining balance will automatically go as unapplied payment. If you enabled the automation for the credits to automatically apply, it will show as credit memo for the next invoice payment.

 

You can read this article to learn more about recording customer overpayments: Record a customer refund in QuickBooks Online.

 

Meanwhile, you can delete the credit memo you created to avoid duplicate amounts in your book. 

 

Here's how:

 

  1. Open the Credit Memo transaction.
  2. Click More.
  3. Choose Delete.
  4. Select Yes.

 

For future reference, you can read this article to guide you in reconciling accounts in QuickBooks Online: Reconcile an account in QuickBooks Online.

 

Feel free to click the Reply button below if you have questions about matching transactions in QuickBooks Online. I'm always here to help. Have a great day.

C
coastalcommunityAuthor
October 13, 2023

Hi Ethel_A,

 

Thanks for the reply. I understand from your response that there's no way to match a generated credit memo to a bank transaction and that different steps must be taken to match bank transactions and customer overpayments turned credit-on-file. I need a method to receive overpayment, apply partial, generate credit (not a refund), and send the customer a credit receipt.

 

The invoice sent to the customer was for $x and the customer mistakenly sent 3*$x. Rather than have the money refunded, they wanted to maintain credit on file, and wanted a receipt showing the credit value with the company.

 

The only way I understood to provide said receipt was to generate a credit memo. I believe the Customer Refund link you provided does not suit this need as I'm not sending any money back to the customer. If there's another way to receive an overpayment, apply part to close invoice(s), and maintain the remainder as credit on file with the ability to send the customer a receipt of said credit, I'd like to learn. 

 

Regarding the partial match:

Prior to the partial match, I attempted to split the transaction--similar to Inuit owned Mint transaction splitting wherein 2 separate line items are generated in the list of transactions--however QBO continually issued error boxes and would not split the transaction.

 

Therefore to associate the customer payment with and to close the invoice, in the bank transactions I selected the 3*$x customer deposit, selected Find Match, selected the checkbox of the customer's open invoice for $x and selected Save and Send so they had a receipt of invoice closure.

 

I then generated the credit memo for 2*$x (the remainder) and sent that receipt to them.

 

Because the original transaction was/is only partially matched, the 3*$x transaction in full remains in the "for review" tab.

Terms & ConditionsAccessibility statement