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Credit Memo Applied Still Appearing in AR

Forum|Forum|5 years ago
February 25, 2021
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I have a credit memo on A/R that was applied and I don't understand why it is still appearing on A/R. The transaction history shows 2 invoices. 1 invoice with a 0 in credit balance column and the 1 that appears on A/R report showing the full amount in the credit balance column. The credit memo is from a prior year. How can I remove this credit memo without affecting prior periods? Thank you in advance.

QuickBooks Desktop

Best answer by Rubielyn_J

Let me provide some insights about this matter, @boss429.

Based on the screenshot you provided, let's ensure to link the credit memo to the invoices successfully. This way, it will not appear in the A/R.

Here's how:

Open your QuickBooks file.
When you create the credit memo, make sure you select Customer: Job. This will open the Apply Credit to Invoice window.
Choose the credit you want to apply automatically.
Lastly, click Done.

Let's also ensure that the date of the credit memo is the prior date for this not to show the present date.

Moreover, you can also delete and recreate the transaction with the assistance of your accountant. This is to make sure you're book will not be messed up.

For more details, I encourage you to view this link: Give your customer a credit or refund in QuickBooks Desktop for Windows.

I've also added this article for future reference: Write off customer and vendor balances.

I'm just a post away if you have any questions. I'll be glad to help you more. Have a lovely day.

JoesemM

Hello there, @boss429.

Since the credit memo is already applied, you don't have to remove this from your A/R report. Also, the possible reason why there's a balance in the report is that the credit memo has different dates with your invoice.

To get the zero balance, you'll have to adjust the period of your report and include the dates of your credit memo and invoice. Let me show you how:

Click on Reports at the top menu bar.
Select Customers and Receivables then choose A/R Aging Report.
Click the Customize Report and filter the necessary details.
Set the desired reporting date.

To learn more about customizing reports in QuickBooks Desktop (QBDT), consider checking out this article: Customize reports.

You can save this report so you won't have to go through the same customization again. Just click the Memorize button and follow on-screen instructions. Check out the Create, access, and modify memorized reports link for more details.

I also encourage checking out this link to know more about the AR account works in QuickBooks: Accounts Receivable workflows.

If there's anything else you need help with, please reach out to me. I'd be sure to jump in as soon as I can. Thanks for posting and have a great day.

B

boss429Author

The credit memo is from over a year ago. I'm still confused. My A/R report is dated today and I don't understand why the A/R report should be modified as I do not see this same scenario for other customers where credit memos were applied. See image attached and let me know what you think. I believe something was done incorrectly but I can't determine how.

Rubielyn_JAnswer