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M
myhbs
December 9, 2020
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Is it fine to add a negative line item to a new invoice for a previous overcharge? What are the implications of doing this vs. issuing a credit memo?

  • December 9, 2020
  • 2 replies
  • 0 views
I issue monthly invoices for competition expenses for a kids sports organization, and issue monthly invoices to charge for registration fees and coaches fees (both are listed as separate products). We've adjusted our competition schedule which has increased our registration fees but reduced the coaches fees. I want to issue the next invoice to adjust for the differences and keep it all on one invoice if possible vs. issuing a separate credit memo for the reduction in coaches fees. But I'm not sure of the backend implications of doing this. I just want to be sure before I process 60 of these! Thank you!
Best answer by BettyJaneB

Thank you for the detailed information about your concern for recording an overcharge in QuickBooks Online, @myhbs.

 

It's fine to add a negative line item on your invoice to reduce the amount that has been overcharged from your fees. This way, you'll be able to create a single transaction for your customer. Just make sure to enter a description on the line item indicating the reason behind the negative figure.

 

Please see the sample snip below on what your transaction will look like: 

 

On the other hand, if you're going to process a credit memo, it would be a separate transaction. The good thing about this is that it is specific because you'll be able to select the exact date of the overcharge. 

 

You can choose any of these options as they have the same effect in QuickBooks.

 

Know that you can always get back to me if there's anything else that you need. I'll be here for you. Wishing you well!

2 replies

BettyJaneB
BettyJaneBAnswer
December 9, 2020

Thank you for the detailed information about your concern for recording an overcharge in QuickBooks Online, @myhbs.

 

It's fine to add a negative line item on your invoice to reduce the amount that has been overcharged from your fees. This way, you'll be able to create a single transaction for your customer. Just make sure to enter a description on the line item indicating the reason behind the negative figure.

 

Please see the sample snip below on what your transaction will look like: 

 

On the other hand, if you're going to process a credit memo, it would be a separate transaction. The good thing about this is that it is specific because you'll be able to select the exact date of the overcharge. 

 

You can choose any of these options as they have the same effect in QuickBooks.

 

Know that you can always get back to me if there's anything else that you need. I'll be here for you. Wishing you well!

    S
    srorke
    June 21, 2023

    Perhaps not the case anymore since the last update?  I can not add a negative line item on an invoice. Says " This value out of range" 

    JessT
    JessT
    June 21, 2023

    Thanks for joining in, srorke.

     

    I haven't heard of any changes from our management team, and I can still do line items with negative amounts on my invoice. Let's take some steps to see if you’re just experiencing random browser issues.

     

    We can start by opening QuickBooks in a private browser. This stops the browser from reusing cached data, which can be broken or misconfigured and caused the error.

     

    • Google Chrome: Press CTRL + Shift + N.
    • Safari: Press Command + Shift + N.
    • Mozilla Firefox and MS Edge: Press CTRL + Shift + P.

     

    If you can have items with negative amounts, you can go back to your regular browser and clear its cache. If not, please try a different browser to isolate the case.

     

    Let me know if you have other questions in mind.

    M
    myhbsAuthor
    December 10, 2020

    Thank you for the detailed response. This is super clear and helpful!

     

    I will go ahead and add the negative line item to keep everything in one place and make a note in the description line.

     

    Thank you again!

      A
      anonymous26
      June 4, 2021

      Problem, my invoice now drops below positive and becomes negative. It won't accept it. How do I get around this?

      AlexV
      AlexV
      June 4, 2021

      Hi anonymous26!

       

      QuickBooks Online won't allow you to save an invoice with a negative total. I'm here to help you.

       

      What I can suggest is to record the overcharge using a credit memo so you can keep track of it. You can use the credits as a payment to your open invoices.

       

      Follow these steps:

      1. Go to the +New button and select Credit memo.
      2. Select the Customer and other details required.
      3. Tap Save and close.

       

      Then, here's how to apply it to an invoice:

      1. From the +New button, select Receive payment.
      2. Select the Customer. In the Outstanding Transactions section, select the open invoice you want to apply the credit memo to.
      3. In the Credits section, select the credit memos you want to apply. Then, enter how much of the credit you want to apply in the Payment column. Make sure the Amount Received is $0.
      4. Leave the Payment method, Reference no, and Deposit to blank.
      5. Tap Save and close.

       

      You can apply the remaining credits to future invoices. You can check the detailed steps here: Create and apply credit memos or delayed credits in QuickBooks Online.

       

      Additionally, you can find the different ways to handle overpayments on this link: Handle a customer credit or overpayment in QuickBooks Online.

       

      For other income and customer concerns, you'll want to visit this page: Sales and customers.

       

      Keep on posting here if you have other questions. We'll help you!

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