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Problem with applying a credit memo. It shows up as money to deposit even though when I applied the credit memo it shows the amount received as $0?

Forum|Forum|5 years ago
October 14, 2020
2 replies
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A credit memo was created for $15. Using Receive Payment, I applied the credit memo towards and outstanding invoice of the same amount so the amount received was $0. I went to make a bank deposit and notice that this transaction shows up as $15 to deposit?

QuickBooks Online

Best answer by JonpriL

Hello @bhs1006,

Let me help share information about how you can close out open invoices with a journal entry credit.

When a journal entry is created as a payment for an open invoice, it'll automatically post the amount to your bank account, and no need to deposit it. With this, you can consider reviewing the journal entry credit you created and make sure you've used the correct accounts to close out your open invoices.

That being said, here's how a journal entry credit post a payment to your customer's open invoices: How to apply a journal entry credit to an invoice?

Additionally, I've also included this helpful article for the steps in creating a document containing all the transactions you've made with your customers: Create and view customer statements.

If there's anything else that I can help you with, please let me know in the comments. I'll be here to lend a hand. Stay safe!

J

JonpriL

Hello @chandaplan,

Let's review the details of the transaction in your bank deposit so we can identify if it is the payment with a credit memo applied or not.

When a payment is created, it'll show up in a bank deposit when you use your undeposited funds account as the affecting payment account. With this, consider opening the payment in the Bank Deposit window and inspect the Deposit to account. Make sure it uses your checking or any bank account so it won't show up in the bank deposit.

In addition, make sure it isn't a duplicate transaction so it won't post a double entry in your customer's balance or sales account. If it is a duplicate, open the payment and click Delete to remove it from your customer's balance.

Additionally, I've got you this helpful article for the steps about sending a document to your customer containing a list of the transactions they've made: Create and view customer statements.

You can always leave a comment below if you have any other questions. Stay safe!

B

bhs1006

I used journal entries to pay for some customer invoices years ago. I noticed these invoices still show as overdue so I read where you can apply the credit (which was created from the journal entry). Now that I have applied all the credits to the open invoices, there are deposit amounts. These amounts aren't really deposits so what do I do with them to remove them?

J

JonpriLAnswer

Hello @bhs1006,

Let me help share information about how you can close out open invoices with a journal entry credit.

When a journal entry is created as a payment for an open invoice, it'll automatically post the amount to your bank account, and no need to deposit it. With this, you can consider reviewing the journal entry credit you created and make sure you've used the correct accounts to close out your open invoices.

That being said, here's how a journal entry credit post a payment to your customer's open invoices: How to apply a journal entry credit to an invoice?

Additionally, I've also included this helpful article for the steps in creating a document containing all the transactions you've made with your customers: Create and view customer statements.

If there's anything else that I can help you with, please let me know in the comments. I'll be here to lend a hand. Stay safe!

C

Cdw52

I am having a similar problem. A customer had a credit of $230. I went into receive payments and applied part of the credit to a $125 invoice. There was $105 left. I applied the $105 to another invoice for $125. This invoice was left with a $20 balance. That worked. The problem is the first invoice. The credit disappeared but the first invoice still says there is $125 owed. Where did the credit go and why didn't it get applied to the invoice? Also, how do I fix it?

Thanks!

RenjolynC

Thanks for joining in on this thread, Cdw52.

I'd like to share some steps to help you with credit.

To verify, does the credit come from an overpayment? If so, it's possible that the first invoice was excluded from that payment. Let's make sure to review the payment and apply the invoice.

Here are the steps:

Go to Sales > Customers.
Select the customer's name and find the original payment with the $230 balance.
In the Receive Payment page, review if the first invoice is included and has a check mark. If none, put a check mark on the invoice to include it.
Click Save and close.

Once done, review the customer's open balance if it's accurate.

To more about applying a credit in QuickBooks Online, you can check out these articles:

Please keep me posted on how it goes from your end. I want to make sure this is resolved for you. Stay safe.

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