How To Record Credit Memos in QuickBooks

Customers occasionally purchase items or products they need to return sometimes. If a customer returns items or if an error occurred during billing, you can issue a credit memo to correct the customer's open balance. Credit memos have the opposite outcome of invoices and create a negative balance on the account. You can automatically create credit memos to open invoices. A pop-up message informs you if the customer has an unpaid balance. When you enter a credit memo for a customer with an unpaid statement, you can apply it to the unpaid invoice, retain it as a credit on the account, or issue a refund. You can use your credit memo to provide your customers a credit. If you don’t know how to Record Credit Memos in QuickBooks, can read out this blog. You will see the entire steps over here at an easier form.

Benefits Of Credit Memo:

It is used to return a product that your customer already paid

Credit amount can be issued as a refund in your customer account

Credit amount can be applied in the next bill of your customer

Assist you to find your sale, payment and return item

Steps To Create Credit Memos in QuickBooks:

Follow the below given instructions to create a credit memo:

Select “Create Credit Memos/Refunds” from the “Customers” menu

Select the appropriate Customer from drop-down menu

Enter the returned items in the line item area and then choose “Save & Close” button

On the Available Credit window, choose any of the following:

Retain as an available credit -QuickBooks Support  enters a negative amount in your A/R register for the credit memo. You can use this credit as a payment for another transaction

Give a refund - You can issue the refund as cash, a check, or a credit card refund

Apply to an invoice - QuickBooks opens the Apply Credit to Invoices window where you can select an invoice to which you want to apply this credit

Select OK

Once you done with the above given steps, you will notice that QuickBooks has added the credit memo at the top of the list. But in case you are confronting any glitches while performing these tasks, you can give an instant ring at QuickBooks Support Phone Number and get united with the techies.