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M
Maverick2
May 16, 2022
Solved

Creating an actual credit memo from an existing credit on customer's account

  • May 16, 2022
  • 1 reply
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When a customer has a credit on their account, this is different than having a credit memo in their documents transaction list.

 

We have a customer who needs an actual credit memo. The statement showing credit on account is not good enough for them. I know how to create a credit memo, but I do not know how, or if it's possible to create a credit memo using that available credit.

 

Suggestions on this?

Best answer by BigRedConsulting

I'm sorry I wasn't clear in my original text. I did send them a statement, where they replied and said they need a document. I imagine it's so they can enter it in their own system as a credit? But why they just can't do that with the statement line item I wouldn't know. 

 

I'll have to think about creating/deleting a credit memo. My CFO wants to wring my neck when I delete things.


Well, it also doesn't make any sense that they'd need anything else either. They have already entered the payment and the smaller invoice into their accounting system, and so it should already show that you owe them money. There's nothing else for them to enter.  Maybe they just want something to file, to prove you know they have an outstanding credit (but then the statement does that, too...)

 

There is an option that might placate them:

- Open the payment that is partially unapplied.

- At the top of the payment under the Print button, pick Print Credit Memo.

 

The result is not really a credit memo in QB, but it looks like one when printed.

 

1 reply

BigRedConsulting
BigRedConsulting
May 16, 2022

A credit memo is issued when something previously sold to the customer is returned or credited for some reason. The opposite of a sale.

 

Why does the customer have a negative / credit balance?

 

RE:The statement showing credit on account is not good enough for them.

 

Why is it not good enough? What is it they want to see?

    M
    Maverick2Author
    May 16, 2022

    The negative balance was from a 100% prepayment. The invoice was then not shipped complete. My normal order of things is to put the received payment in the customer advance other current liability account. Then when it was time to ship, I created a credit, pulling the payment out of the customer advance account and applied it to the invoice, leaving the negative balance on their account.

     

    It's a customer in Germany, a huge company. I'm not sure why the statement is not enough for them. They specifically asked for a credit memo document.

    BigRedConsulting
    BigRedConsulting
    May 16, 2022

    Well, there isn't any way to generate a credit memo in this case that makes any sense from an accounting point of view, since the customer didn't return anything, but instead basically just overpaid for the invoice - ahead of time.

     

    You could create a credit memo and send it to them and void it, since it makes no sense in QB in this case.

     

    Still, if you don't know why what you sent isn't good enough, then none of us know what exactly they expect in this case.  Perhaps a credit memo isn't what they want either?

     

    Perhaps a statement would work for them. It will show the payment and the invoice and the negative/overstatement balance.

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