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October 22, 2020
Question

Can I raise a credit note for an invoice which includes a linked billable expense? There doesn't seem to be an option to add the billable expense to the credit note??

  • October 22, 2020
  • 1 reply
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1 reply

October 22, 2020

I can share a couple of info and steps to ensure you can manage your credit notes in QuickBooks Online (QBO), @info1344.

 

Being able to add a billable expense directly to a credit note is a great idea. Currently, we can only apply a billable expense to an invoice. For more info about this, please check out this article: Enter billable expenses.

 

I can share two ways to get around this. First, you can add the Invoice No. on the Message displayed on credit note field. This way, you can identify the invoice with a billable expense linked to it. 

 

Second, you can associate the invoice with a billable expense directly to your credit note instead. To achieve this, you can either apply the credit note to an invoice manually or use the auto-apply credits feature.

 

To do it manually, here's how:

 

  1. Click + New, and then select Receive payment.
  2. Enter the customer’s name, and then fill out the required fields
  3. Go to the Credits section, and choose the credit note you've created. 
  4. In the Payments column, enter how much credit your customer wants to use.
  5. Click Save and close when you're ready.

You can use the second option for future invoices you'll create. First, you'll need to turn on the Automatically apply credits feature on the Account and Settings page. Let me guide you how:

 

  1. Click the Gear icon at the top, then select Account and Settings.
  2. Choose the Advanced tab, then select Edit ✎ in the Automation section.
  3. Tap Automatically apply credits.
  4. Click Save, then choose Done.

Once done, perform the receive payment process as you normally would. For more insights, please review this resource: Create and apply credit notes in QuickBooks Online.

 

Also, you can pull up invoices-related reports on the Reports menu. Just select the desired report from the Who owes you section.

 

Lastly, I'd recommend visiting our QuickBooks blog page to get you in the loop about the latest news and product updates.

 

I'm always around to lend a hand if you have more questions about managing your invoices or credit notes in QBO. Just click the Reply button to add your comment. Take care.