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cdhodgdon
December 11, 2018
Solved

How to zero out a credit memo

  • December 11, 2018
  • 6 replies
  • 0 views

Looking for the best option to either clear out a credit memo or remove the value for a customer.

In the past, we gave our customers a referral credit for sending us a new customer.  We have discontinued this practice as we don't generate enough business that way.  Some of these customers that we gave this credit too, still have this credit on their account and they are no longer in the area, or just don't care about it and I would like to zero out their accounts, so it does not show on there.

What is the best way of doing this without having to a check or something, that would affect the actual cash in our system?

Thanks

Best answer by Raywhite28
You have to create an invoice to offset the credit & then use the receive payment screen to apply the credit to the invoice.

6 replies

Raywhite28
Raywhite28Answer
December 11, 2018
You have to create an invoice to offset the credit & then use the receive payment screen to apply the credit to the invoice.
    C
    cdhodgdonAuthor
    December 11, 2018
    Won't that add cash to my system that does not exist or is it just going to make it a wash?
    Raywhite28
    Raywhite28
    December 11, 2018
    @cdhodgdon

     Creating an invoice to offset a credit memo for the same amount doesn't add cash.
    Raywhite28
    Raywhite28
    December 11, 2018
    @arkvalleyinfo

    Doesn't matter the credit memo is from 2013.
      Raywhite28
      Raywhite28
      December 11, 2018
      You're not adding cash. If you have a credit for $100 & you create an invoice for $100, there is no cash. The credit & invoice wash each other out.
        A
        arkvalleyinfo
        December 11, 2018
        does it matter if the Credit Memo is from 2013? we are on cash basis
        S
        snikes123
        May 28, 2019

        A credit was given by mistake and want to cancel it

         

        J
        JanyRoseB
        May 28, 2019

        Hello there, @snikes123.

         

        Good to see you here in the QuickBooks Community. I'm here to help walk you through on how to cancel the credit applied to the transaction. 

         

        Here's how to remove a credit memo from an invoice transaction:

        1. Locate the appropriate credit memo.
        2. Press Ctrl + H to display History.
        3. Double-click the invoice.
        4. Choose Apply Credits.
        5. On the Previously Applied Credits window, clear the selection for credit.
        6. On the Apply Credits window, select Done.
        7. On the invoice, select Save and Close.

        However, if this is a vendor credit from a bill, you can follow the detailed steps on to remove it: Remove or unapply a credit from an invoice or bill. 

         

        That should do it! Don't hesitate to leave a comment below if you have additional questions about the credit memo. I'd be happy to answer them for you. Have a great day. 

        J
        jeanylum
        February 13, 2020

        What do you put in the Product/Service column to zero out a credit memo?  Do you have to create a new item for this?

        JoesemM
        JoesemM
        February 13, 2020

        Hi there, @jeanylum.

         

        You don't need to create a new product memo. You'll want to create an invoice to offset the balance. Let me show you how: 

         

        1. Go to the Customers menu, select Create Invoices.
        2. From the Customer: Job drop-down, select a customer or customer job. 
        3. Fill in the necessary information the same with your credit memo.

        Once you've done creating an invoice then we can  received payment to apply the credit to the invoice.

         

        I've got here an article to know more about credit memo: Give your customer credit or refund in QuickBooks Desktop for Windows.

         

        You can visit our website in case you need tips and related articles in the future.

         

        Let me know if you need anything else. All the best! 

        S
        Supergirl17
        May 15, 2020

        We have a Customer Credit Memo dated 2018 that they didn't use. How do we close it without applying to an invoice? What is the Journal Entry given that it's from 2 years ago.

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