If you choose check, then you can print the check in your usual manner. Choose follow the step-by-step instructions. If you choose this method, a new window opens asking how you are going to issue a refund (cash, check, ACH).

After you have created an invoice that you would like to apply the credit to, click the Apply Credit button and follow the instructions under apply to invoice above. The credit will remain on the customer’s open balance until you apply it to a future invoice. In this method, either the customer doesn’t have any open invoices or wants to save the credit for a future job. 1.) You can retain as an available credit: There are a few options you can apply the credit that you have just issued. It is better suited if you do not require a lot of detail in the credit memo it’s ideal if you are issuing a credit for bad debts or a discount of some sort. This method is probably not the one to use if you are issuing a credit for an entire invoice and want your inventory and liability accounts to be updated. The second method gives you a blank slate when you are issuing your credit. You can remove entire lines of the invoice and change quantities and amounts as needed. This method is ideal if you want to credit the entire invoice or large pieces of it. It even reduces your sales tax liability if needed. The only difference is it is not charging, but crediting, the customer. If you use the first method, a credit memo that looks exactly like your original invoice is created. A credit memo window appears and you can create the credit. On the menu bar, click Customers, then click Create Credit Memos/Refunds.Make any necessary changes (or create the actual detail of the credit memo.)Ģ.) The second method allows you to create a credit memo directly from the main menu.The Credit Memo opens with a credit already created that mimics the original invoice.Make sure you are in the Main tab and click the Refund/Credit button.Open the invoice that you need to create a credit for or issue a refund check.Two Ways to Issue Credit Memos 1.) In the first method, you use the refund/credit button from within an open invoice. Depending on the situation, deleting or voiding invoices may change areas of QuickBooks that you do not want to adjust, like inventory or sales tax liabilities. In these situations, credit memos need to be issued.ĭeleting or voiding invoices is never a good idea, nor is just changing the amount of an invoice. Challenges present themselves, however, when a customer overpays the amount owed and wants a refund, refuses to pay a part of the invoice, or returns items from the invoice, or you agree to a payment for a lower amount. It is easy to create invoices and receive payments in order to apply payments to a specific invoice or to your customer’s open balance.

Credit memo accounting