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SueHam
February 10, 2022
Question

How to record Provision of Receivable (temporary credit)

  • February 10, 2022
  • 1 reply
  • 0 views

Hi,

 

I'm using Quickbooks Desktop.

When one of my customers issues payment they are including a Provision of Receivable (temporary credit memo), they forecast different associated fees due from us, this usually gets cleared in a few days, then I would see a Provision of Receivable reversal on the remittance advice.

 

The major issue I'm having is that the customer includes the provision of receivable payment with multiple open invoices, so they would deduct these provisions and credit the provisions to specific open invoices, making it impossible to mark these open invoices as paid.

 

Do I treat the provision as a journal? How do I mark invoi

1 reply

C
ChristieAnn 11
February 10, 2022

Thank you for visiting the QuickBooks Community, SueHam. I'll be sharing different details to ensure that you'll be able to manage transactions in QuickBooks Desktop.

 

QuickBooks Desktop has the option to create a credit note/memo or refund check and you can choose how you want to handle the credit. This way, QuickBooks makes it easy to present money back or credit to your customers, and treating the provision as a journal isn't necessary.

 

To start with, you can retain the entry as an available credit.

 

Here's how:

 

  1. Select the Customers menu at the top and choose Receive Payments.
  2. Under the Received from the drop-down, select your customer. Then, choose the Discounts and Credits icon.
  3. From the Credits tab, check the credit you want to apply and then Done.
  4. You may see a prompt to Confirm transfer. If you do, select Yes. The amount will be applied automatically to the invoice.
  5. Click Save & Close.

 

Then, you can also apply for the available credit as a refund. Please follow the steps below.

 

  1. The check is filled out automatically. Select OK.
  2. Link the check to the overpayment. Then, go to the Customers menu and select Receive Payments.
  3. From the Received from the drop-down, choose the Customer. Then, select the Discounts and Credits icon.
  4. In the Available Credits section, click the check you created and. Then, Done.
  5. You may see a prompt to Confirm transfer. If you do, click Yes. The amount will be applied automatically to the invoice.
  6. Press Save & Close.

 

Lastly, apply a credit to an open invoice. To see steps on how to perform the process, you can open this article: Give your customer a credit or refund in QuickBooks Desktop for Windows.

 

You may refer to this article to view various ways how you can track customer transactions in QuickBooks Desktop: Get started with customer transaction workflows in QuickBooks Desktop.

 

If you have more questions about recording customer transactions, please let me know and I'd be glad to help you out. You can also add any other concerns you might have about QuickBooks Desktop.

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