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GGAngel
February 23, 2022
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credit memo for customers QB Desktop

  • February 23, 2022
  • 2 replies
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Hello,

I would like to create a credit memo for a discount that was not applied to a sales receipt. I cannot record a negative credit memo, how do I account for this in QB Desktop?

Thank you,

Best answer by BigRedConsulting
@GGAngel wrote:

I would like to create a credit memo for a discount that was not applied to a sales receipt. I cannot record a negative credit memo, how do I account for this in QB Desktop?

 

Yes, the case is that discounts work the same way on credit memos as on invoices. There isn't a way to add a lone discount to either type of form and enter a positive amount for it. So, to handle this I created an Other Charge type item and called it "Discount CM", using the same account I use for other discounts. I use it on credit memos for this very case - when I've granted a customer a discount after the fact and the sale is already processed.

2 replies

AlcaeusF
AlcaeusF
February 23, 2022

Hi @GGAngel,

 

Welcome to the Community. I'd be glad to help you handle the customer discount in QuickBooks Desktop.

 

You provide sales receipts for immediate payment of products or services at the time of sale. It's recommended to mirror out transactions on how they happen in the actual scenario.

 

Currently, the option to enter a negative amount when creating a credit memo is unavailable. If your customer used a credit card and got charged in full, you can refund the partial amount for the discount. 

 

There's a box you can tick within the memo to create a credit card refund for the discount. Here's how:

 

  1. Sign in to QuickBooks Payments from QuickBooks Desktop.
  2. In QuickBooks Desktop, click the Customers tab at the top menu bar, then select Credit Memos/Refunds.
  3. In the Customer:Job dropdown, select the customer you need to refund.
  4. Enter the products and services you need to refund.
  5. Once done, select Save & Close. It opens an Available Credit window.
  6. Select Give a refund and then OK. Or if you want to give credit for future payments, select Retain as an available credit and then OK.
  7. In the Issue this refund via field, select the type of credit card you need to refund.
  8. Enter the credit card info, or select Swipe card and swipe the customer’s card.
  9. Select the Process credit card refund checkbox.
    IssueRefund_QBDT_Both_June2020.jpg

 

QuickBooks applies credits and refunds to your customer’s card when it settles your latest batch of transactions at 3:00 PM PT each day. However, it may take time before your customer sees the credit, depending on their bank. The industry standard is 7 to 10 business days.

 

I've included some links that contain three options on how to handle the credit, as well as some steps to create item discounts in QuickBooks:

 

 

Feel free to hit that Reply button if you have additional questions. Have a great day ahead.

BigRedConsulting
BigRedConsulting
February 23, 2022

@AlcaeusF  RE: "I'd be glad to help you handle the customer discount in QuickBooks Desktop."

 

You write that and then... you don't help at all.

 

The OP knows how to create a credit memo. They didn't ask how to create a credit memo. They asked a different question, which you did not answer.

    BigRedConsulting
    BigRedConsultingAnswer
    February 23, 2022
    @GGAngel wrote:

    I would like to create a credit memo for a discount that was not applied to a sales receipt. I cannot record a negative credit memo, how do I account for this in QB Desktop?

     

    Yes, the case is that discounts work the same way on credit memos as on invoices. There isn't a way to add a lone discount to either type of form and enter a positive amount for it. So, to handle this I created an Other Charge type item and called it "Discount CM", using the same account I use for other discounts. I use it on credit memos for this very case - when I've granted a customer a discount after the fact and the sale is already processed.

      G
      GGAngelAuthor
      February 24, 2022

      Thank you for your reply. So, you would use the same thing for a sales receipt?

        BigRedConsulting
        BigRedConsulting
        February 24, 2022
        @GGAngel wrote:

        Thank you for your reply. So, you would use the same thing for a sales receipt?

         

        Well, that would be a sale then, not a refund. You'd be charging the customer more. So not sure, but it depends on what you're trying to do.

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