Quickbooks Credit Memo: How To Create It

We often think of QuickBooks as being there to help us get paid by our customers. After all, it has specially made  invoice templates for customer billing and sales receipts for instant sales recording. It even supports payments online, allowing you to accept debit or credit cards as well as electronic checks. It makes the process of recording payments simple and it gives you reports that allow you to keep track of everything.

QuickBooks allows you to create credit memos or issue a refund check in simple steps. In this article we will be covering how to create Quickbooks credit memos.

What are Credit memos?

Credit memo is for a customer who returns an item that they have already paid for. It is to credit the customer for the cost of the two procedures, this is more complicated. It takes more bookkeeping because you need to track the sale, the payment, and the return of the item.

If a customer paid more than what was owed, returning a product, requesting a refund, or if you are rewarding them with a store credit then, you can create a Credit Memo. Let’s have a look, How to create credit memos.

How To Create Quickbooks Credit Memo

  • Click on the plus (+) icon
  • Then Select Credit Memo.
  • Now, Choose the customer name.
  • Enter the Credit Memo Date.
  • To fill the service date, product and amount fields.
  • Choose save and close the tab.

If you have created a credit memo and now you want to proceed in applying it to the invoice then, follow the steps below on how to create invoice

How to Create Invoice

  • Click on the sales in the left navigation bar.
  • Choose the customers tab.
  • Locate and click on the customer’s name.
  • Locate the invoice you want to apply for the credit and click on the receive payment.
  • Put the Payment date, method, Reference no. and the deposit to account.
  • In the successful transactions, make sure that the correct invoice is selected.
  • Make sure the right credit memo is choose in the credit process
  • Select on the Save and close the tab

Where to Find Credit Memos in QuickBooks?

To make changes in the required credit memo in QuickBooks, you need to create a credit memo report by following the below given steps-:

  • Open QuickBooks and choose Customers and Receive from the report tab
  • Select transaction list by Customer from the new drown down list to start it further
  • Click on customize report and then move to filters tab
  • Type the transaction in the choose filter search area
  • Click on the transaction type when the drop-down opens and select credit memo
  • Click OK to see all credit memos that you have in QuickBooks desktop

If you have the list of all credit memos then, you can settle an overpaid invoice in any of the four ways stated below:-

  • Create a credit and return the amount which is overpaid
  • Write off the amount by creating a Journal Entry
  • Put the credit to the next invoice
  • Put the credit to another invoice, which is not paid

As mentioned above the QuickBooks credit memo you can use QuickBooks credit memo as the payment for different types of transactions. It is important for all types of transactions and also keeps track of all records in QuickBooks.

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