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.
Lee is a writer, editor, and technology evangelist. Lee received her undergraduate degree in Communications from Ithaca College.