Doing bookkeeping for daycare. We receive government subsidies for the kids care. How can I apply the subsidized amount to the parent's invoices?

Hi karolina.schutzo,

It's great to hear that you're provided government subsidies to assist with child care in your fine establishment!  With QuickBooks Online features, you can record the amount received and apply it to the invoices for the parent companies.  You can enter a credit memo to immediately reduce the current balance of the invoice, or create a delayed credit that can be used in the future.  This can automatically be applied when the auto-apply feature is enabled.  I'd be happy to show you how!

Here's how to automatically apply credit memos to customer balances or open invoices:

To turn on the feature, follow these steps:

1. Click on the Gear ⚙ in the top right and select Account and settings

2. Open the Advanced tab

3. Hit the Edit ✎ icon in the Automation section

4. Select Automatically apply credits

5. When finished hit Save, then Done

You're ready to create a credit memo, here's how:

1. Select +New from the left menu

2. Choose Credit memo

3. Pick the customer's name from the Customer dropdown

4. Enter the required fields and his Save and close when complete.

Your done!  Since you've turned on the auto-apply feature, QuickBooks has applied the credit for you!

A delayed credit can be applied the next time you invoice the customer.  Follow these steps to create the delayed credit:

1. Select + New

2. Choose Delayed credit

3. From the Customer dropdown, select the customer's name

4. Enter the details, such as the date and the amount

5. When you're done, click Save and close

Now you can apply the delayed credit to an invoice by going to:

1. +New

2. Select Invoice

3. Use the Customer dropdown and choose the customer. This opens a window with all open transactions for the customer, including invoices and delayed credits. Note: If you don't see this, select the small arrow next to the invoice balance.

4. Locate the delayed credit and select Add. This adds it as a line item to the invoice.

5. Fill out the remainder of the invoice 

6. When you're done, clickt Save and close or Stamp

Here's an article for your reference to assist with creating and applying credit memos or delayed credits in QuickBooks Online.

Please feel free to reach back out if  you have any other questions.  We're here for you!