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jeffreyk28
November 10, 2020
Question

Apply credit memo to payment

  • November 10, 2020
  • 2 replies
  • 0 views

I created a credit memo and left it available to be used at a later time. It shows up in my open invoice listing. I then received payment from customer. The payment consists of 3 invoices and the credit memo. I go to receive payment and select the customer. The 3 invoices show and I can select them to be applied to the payment.  The credit memo does not appear. How do I apply the credit memo to this payment?

2 replies

MonicaM3
MonicaM3
November 10, 2020

Hey @jeffreyk28,

 

I’d be happy to help you get that credit memo applied to your customer’s invoices. When you’re in the Receive Payments window and have selected your customer:

  1. Select the invoices you want to pay.
  2. In the middle of the screen, below the invoices, look in the UNUSED CREDITS window.
  3. choose Apply Credits.
  4. That will open a window with the AVAILABLE CREDITS.
  5. Select the credit you want to apply.
  6. Done.

 

You’re all set! Let me know if you have any other questions about applying credits or anything else. I’m happy to help anytime.

J
jeffreyk28Author
November 10, 2020

There is no unused credits window.  I am attaching a screen shot.

 

This is for a customer that has several jobs.  The credit memo is for one job and the invoice payments are for other jobs. Qbooks seems to want to apply the credit to an existing invoice. I simply want to apply the credit memo to the payment.

S
ShiellaGraceA
November 10, 2020

Thanks for getting back to us here, @jeffreyk28.

 

I have an idea about why your unused credits aren't available when making a payment. Let's run the verify and rebuild tool to check if it has something to do with your data. This tool self-identifies the most commonly known data issues within a company file and self-resolves most data integrity issues.

 

Let me show you how:

 

  1. Go to the File menu at the top, then select Utilities.
  2. Choose Verify Data. "QuickBooks detected no problems with your data," no further action is needed.
  3. "Your data has lost integrity," indicates there is data damage in the file.  Continue to the steps below to Rebuild Data to correct the problem.

To rebuild:

  1. Go to the File menu at the top, then select Utilities.
  2. Choose Rebuild Data.

After running the tool, restart your computer and try receiving the payment again. For details about the tools, check out this guide: Verify and Rebuild Data in QuickBooks Desktop.

 

In case you need help with other customer tasks, click this link to go to our general customer's topic with articles.

 

Let me know in the reply section below if you still have questions or concerns. I'll be around to answer them for you. Take care and have a great day ahead.

A
AegisSCG
June 5, 2023

I created a Credit Memo as deposit to my new customer. I charged his credit card and now I don't know how to apply payment to his Credit Memo. Should I create an Invoice to replace the Credit Memo?

JessT
JessT
June 5, 2023

Hi AegisSCG,

 

A credit memo is like a negative invoice that lowers a customer's balance. It's also entered if a customer returns an item due to sale cancellation or it's defective. 

 

On the other hand, when a customer pays in advance or gives you funds to be used on future invoices, the money is entered as an upfront deposit or retainer instead of a credit memo.

 

Therefore, I would recommend consulting an accounting professional to ask for guidance on how to handle your credit memo because we're unable to use it as a substitute for the credit card payment made by your customer. I can, however, be applied as a payment to future invoices. 

 

I'm adding this article about creating a credit memo and applying it as a payment to future invoices: Give your customer credit or refund in QuickBooks Desktop for Windows.

 

Let me know if you have other concerns. I'm just around to help.

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