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February 6, 2024
Question

How can i delete credit amount from coustomer?

  • February 6, 2024
  • 1 reply
  • 0 views

Hi,

I have credit amount in the customer's account and it will not be used until end of the year 2023. How can I make journal entry for that credit amount without affecting other related accounts. I am using Quickbook desktop non- profit version 2021. Thank you. 

1 reply

February 7, 2024

I can assist you in removing the credit amount from your customer account, Ohn.  

 

If your customer has a credit balance that needs to be offset, you can create a journal entry to do it. To create the entry, you need to debit the account where the credit was applied and credit the account where the offsetting entry needs to be made. This will balance out the credit and ensure that your books remain accurate. Double-check all the account details before creating the journal entry to avoid errors. If you need clarification on the process or are unsure which account to use, it's always best to seek help from your accountant.

 

 Create an appropriate journal entry: 

 

  1. From the Company menu, choose Make General Journal Entries.
  2. Change the date in the Make General Journal Entries window and fill in the entry number if necessary.
  3. For a customer with an overpayment
    1. Select the Account field and select Accounts Receivable from the dropdown list.
    2. Enter the amount under the Debit column, tab to the Name column and select a Customer Name from the dropdown list.
    3. In the next line, select the offset account and enter the amount under the Credit column. The offset account is usually an Expense account.

 

Then, let's apply the General Journal Entry to the Existing Credit, and you can follow these steps: 

 

  1. From the Customers menu, choose Receive Payments.
  2. Enter the name of the customer in the Received From field.
  3. Tap the invoice and click Discounts & Credits.
  4. Under the Credits tab, select the available credit and press Done.
  5. Click Save & Close.

 

This will link the payment to the unapplied credit in the Journal entry and mark the credit as applied. For more details, please refer to this article: Write off customer and vendor balances

 

Additionally, for more resources about managing accounts receivable workflows in QuickBooks, check out the QuickBooks Desktop guide on customer transaction workflows: Get started with customer transaction workflows in QuickBooks Desktop.

 

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