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zenkengee927
September 27, 2024
Question

Deposits/payments that include deductions from the total for item returns that were paid on previous deposits....

  • September 27, 2024
  • 1 reply
  • 0 views

Our business makes sales through a catalog.  The catalog groups sales and pays once / month on several invoices at a time.  Occasionally a payment will show a negative amount for a return of an item that was paid in a previous payment.  Therefore the payment amount shown is for the total of the current invoices less the amount of the return.  But since I already cleared the original payment I cant deduct it from the "receive payments" page.  If I void the original invoice then the original deposit/payment amount is wrong and the new payment is still wrong.

Is there any way to connect the two payments and deduct the return amount? Or something else?

Thanks!

1 reply

A
AdonL
September 27, 2024

I appreciate your time visiting the Community space, zenkengee927. I can help you manage your customer's payments and handle returns. 

 

In QuickBooks Online (QBO), when a customer returns a product, you'll need to create a Credit Memo for the returned item. This will allow you to track the return without affecting the original invoice. Then, when you receive payment for current invoices, you can apply the credit memo against these invoices. This process allows you to maintain accurate records without voiding previous transactions, thus keeping your financial statements consistent and correct.

Here’s how to create a credit memo:

 

  1. Click the + New icon and select Credit Memo.
  2. From the Customer dropdown, select the customer's name.
  3. Enter the credit memo details and fill in the necessary information.
  4. Click Save and close when you're done.

 

Once you've created a credit memo, you can apply it to the current invoices. Follow the steps below on how:

 

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

 

The steps above will help you apply the credit to your customer’s open invoices. You can also turn this feature automatically in QBO. For your reference, check out this article: Apply a credit memo, credit, or refund to a customer.

 

Moreover, you can generate sales reports in QBO to get helpful insights about the things you buy and sell and the status of your inventory. You can also memorize it to save customization settings for future use.

 

We're always ready to back you up if you need further help managing your customer's payments or other QuickBooks-related concerns. We'll keep the thread open so you can comment back.

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