How to Enter a Credit Memo in QuickBooks
Customers occasionally will purchase items or services they need to return. If a customer returns items or if an error was made when billing a client, you can issue a credit memo to adjust the customer's open balance. Credit memos have the opposite effect of invoices and create a negative balance on the account. You can automatically apply credit memos to open invoices. A pop-up message notifies you if the customer has an unpaid balance. When you enter a credit memo for a customer with an unpaid invoice, you can apply it to the unpaid invoice, retain it as a credit on the account, or issue a refund (this option generates a check payable to the customer). To enter a credit memo for a customer in QuickBooks, follow these seven steps.
This feature works the same in versions 2011–2016 of QuickBooks.- On the Home page, in the Customers panel, click Refunds & Credits.
- From the Customer:Job drop-down list, select the customer.
- Fill out the Credit Memo form, entering the date, credit memo number (you can assign it or accept QuickBooks' automatic numbering), quantity, item, and item details as applicable.
- Mark the To be printed or To be e-mailed checkbox(es) or neither to indicate how the credit memo should be distributed to the customer.
- Verify the total amount of the credit memo and then click Save & Close.
- If the customer has a remaining balance, you are prompted to select how to apply it. Select an option and then click OK.
- Confirm that the credit memo was entered correctly by viewing the customer transaction history or by viewing the Open Balance Report.
Related Articles
- How to Transfer Funds Between Bank Accounts in QuickBooks
- How to Create a Company File in QuickBooks Using Express Start
- How to Create a Profit and Loss Report in QuickBooks
- How to Customize an Invoice Form in QuickBooks
- How to Add Inventory Items in QuickBooks
- How to Write Checks and Enter Bills in QuickBooks
- How to Use the Account Register in QuickBooks
- How to Delete and Void Checks in QuickBooks
- How to Export a QuickBooks Report to Microsoft Excel
- How to Add Credit Card Accounts in QuickBooks
- How to Run a Sales Tax Report in QuickBooks
- How to Enter a Credit Memo in QuickBooks (this article)
- How to QuickZoom on a Report Item in QuickBooks
- How to Track Time for a Single Activity in QuickBooks
- How to Customize the Icon Bar in QuickBooks
- How to Customize Preferences in QuickBooks
- How to Create a Memorized Report in QuickBooks
- How to Change the Default Sales Tax in QuickBooks
- How to Create a Sales Tax Group in QuickBooks
- How to Add a Filter to a Report in QuickBooks
- How to Perform an Advanced Find in QuickBooks
- How to Add Items to the Item List in QuickBooks
- How to Close a Company File in QuickBooks
- How to Change the Header and Footer in a QuickBooks Report
- How to Enter Credit Card Charges in QuickBooks
- How to Run a Time Tracking Report in QuickBooks
- How to Add Vendors in QuickBooks
- How to Select Payments to Include in a Deposit in QuickBooks
- How to Apply Sales Tax to an Invoice in QuickBooks
- How to Quick Add a Name in a Timesheet in QuickBooks
- How to Use the Open Window List in QuickBooks
- How to Record and Receive Customer Payments in QuickBooks
- How to Track Vehicle Mileage in QuickBooks
- How to Reconcile an Account in QuickBooks
- How to Delete a Memorized Transaction in QuickBooks
- How to Record a Sales Tax Payment in QuickBooks
- How to Create a Memorized Transfer in QuickBooks
- How to Set up a Vehicle List in QuickBooks
- How to Enable Class Tracking in QuickBooks
- How to Set Up a List of Class Items in QuickBooks
- How to Edit a Memorized Transaction in QuickBooks