#Quickbooks credit memo refund check series

Blackman & Sloop provides services in Raleigh, Durham, Chapel Hill, RTP, Hillsborough, Pittsboro, Charlotte, and the rest of North Carolina.In earlier articles within this series we looked at the workflows for 'sales' using Sales Receipts as our first example in which we also introduced undeposited funds. The firm also performs review and compilation services and prepares not-for-profit, corporate, individual, estate, retirement plan, and trust tax returns as well as technology consulting services regarding installation and training on QuickBooks. The firm directs a large part of its services toward providing management with advice on budgeting, forecasts, projections, financing decisions, financial analysis, and tax developments. We’ll be glad to help you make sure that this sometimes-complex task is done right from the start.īlackman & Sloop is a full-service CPA firm headquartered in Chapel Hill, North Carolina and is actively involved in auditing, taxation, management consulting, financial planning, and related services. It seemed easier in the days when you just wrote a check for a refund or made an entry in a paper ledger, didn’t it? Using QuickBooks credit memos, though, helps you maintain records that follow standard accounting procedures and simplifies our understanding of your files. Put a check mark next to the correct one and click Done. Be sure that the Tax Columns are correct. WARNING: Enter two lines on the credit memo if it combines both taxable and non-taxable items (both charged to the Bad Debt account), one for each type. Enter the write-off amount minus sales tax if taxable (be sure the Tax column is correct) and click Save & Close. You’ll get a message saying that the item is associated with an expense account click OK. Open the Credit Memo window and select the customer, then select Bad Debt as the item. Name it “Bad Debt” and match it to the correct account. If you don’t already have a Bad Debt item in your item list, set up a new item as an Other Charge. You can also use credit memos to write off bad debt if you are using the accrual method of accounting. The Issue a Refund window opens you’d treat it the same way you did when you dispatched a return refund. In the screen’s lower left corner, you’ll see this:Ĭlick the correct button, then Save & Close. Open the Customer Payment screen ( Customer Center | Transactions | Received Payments) and double-click the related payment. Sometimes, customers overpay an invoice or statement charge, or make a down payment for which there is no invoice. When you want to use them, click the Apply Credits button in the lower right corner of the invoice.į igure 3: When issuing a refund, QuickBooks can hold those funds to be applied to invoices later. Or if you want to have those extra funds available for other invoices but don’t want to apply them immediately, click Retain as an available credit. A list opens just select the correct invoice. If the customer has open invoices, you may want to choose Apply to an invoice in the Available Credit window. You’ll also have to deal with transaction fees. Your instructions will depend on whether you are using Intuit Merchant Service for QuickBooks or another merchant account service. WARNING: If the invoice was paid with a credit card, it gets complicated. The refund check has now been entered in the checking register, ready to be processed.

The Issue a Refund window opens and should already be filled in. You would select Give a refund and click OK. The Available Credit window opens, displaying your options:įigure 2: The Available Credit window displays your credit balance options.

Enter the items just as they appear on the invoice. Select the correct customer and job (and A/R account, if you have more than one). Apply the balance to an existing invoiceĬlick Customers | Create Credit Memos/Refunds.Let’s say a customer pays for an order but cancels before it ships. If they aren’t, you may lose a lot of the time that QuickBooks helped you save as you try to chase down a few dollars.įigure 1: QuickBooks helps you identify refunds quickly. It’s critical that these are entered correctly. There are numerous scenarios that necessitate the use of credit memos, including overpayment, order cancellations and bad debt write-off. You may find yourself unable to balance your accounts receivable. Some – like customer refunds for returns – are fairly uncomplicated, thanks to QuickBooks’ tools.

Quickbooks credit memo refund check