Skip to main content
L
luvbudgies
October 6, 2021
Question

Automatically Apply Credits to Sales Invoice

  • October 6, 2021
  • 1 reply
  • 0 views

Is there a way to have credits automatically show up *on* the actual invoice, same way as the discount line item prints on an invoice?

I have "automatically apply credits" turned ON in automation. I've done an invoice to verify it works. However, the credits do not show up *on* the invoice, so the invoice does not reflect the lower balance owing because of the previously existing credit.

This leaves me responsible for *remembering* the customer has a credit and then manually working out what the reduced balance owing is.

I have a customer who has sent me an etransfer payment and transposed the numbers, so he mistakenly paid me too much. I entered the full amount of payment received in the "receive payment" window, and QBO has automatically created a credit in that customers account, but it isn't actually a credit memo.

So:

1. Is there a way to have these credits automatically entered on the next actual invoice?

2. If the credits don't get entered on the next actual invoice so the next invoice has a balance reduced by the credit amount, **how** can I track who has credits without having to check the customer's transaction list in the customer center each time I create an invoice? That would be time consuming and irritating.

3. Without the credit showing up on the actual invoice, the customer doesn't see the credit reflected on an invoice, so it isn't clear and transparent to the customer what is going on.

Thanks for any insight.

1 reply

T
Trish_T
October 7, 2021

Hi luvbudgies,

 

Welcome to Community!  In QuickBooks Online you'll be able to use either a credit memo, to immediately reduce an open balance, or a delayed credit that can be added to future invoices as a line item.  I'd be happy to provide more information!

 

Turning on the automation feature was a great start!  You're now ready to create a credit memo.  Here's how:

 

1. Click + New.

2. Select Credit memo.

3. Choose the Customer from the dropdown

4. Enter the credit details, such as the Date and the Amount.

5. Review the information and then hit Save and Close

 

Since you've turned on the auto-apply feature, the credits will appear the next time you Receive Payment for any open invoices for your customer.

 

If you'd prefer to apply a delayed credit, to be applied the next time you invoice the customer, here's how to do that:

 

1. Select + New.

2. Pick Delayed credit.

3. In the Customer dropdown, select the customer's name

4. Enter the details, date and the amount. 

Tip: You can create a custom credit service item so you can quickly add it to delayed credits as a single line item.

5. When you're done, select Save and close.

 

Let's apply the delayed credit:

 

1. Go to + New.

2. Choose Invoice.

3. Select the Customer. This opens a window with all open transactions, including invoices and delayed credits. Note: If you don't see this, select the small arrow next to the invoice balance.

4. Add the delayed credit. This adds the credit as a line item to the invoice.

5. Complete the remaining required fields 

6. When finished, select Save and close

 

Here's an article for Creating and applying Customer Credits, for future reference.

 

If you have any additional questions, please feel free to reach back out.  We're glad to assist!

 

Terms & ConditionsAccessibility statement