How to Apply a Credit Memo to a Customer’s Invoice

Want to apply a credit memo to a customer’s invoice in Quickbooks? Not to be confused with a refund or delayed credit, a credit memo will adjust the customer’s balance without affecting the customer’s invoice until you manually apply it. Quickbooks makes applying credit memos a breeze. For step-by-step instructions on how to use them, keep reading.

To apply a credit memo, log in to your Quickbooks account and click the (+) icon at the top of the main screen, followed by ‘Credit Memo.” Next, you’ll be prompted to enter information about the memo. Once complete, click the “Save and close” button.

Now that you’ve created the credit memo, you’ll need to apply it to the customer’s invoice. This is done by clicking the (+) icon again, followed by “Receive payment.” For the “Customer” field, choose the customer to whom the credit memo is being applied. For the “Date” field, enter the date on which you want to apply the credit memo. You can leave the other fields blank, including the “Payment method,” “Reference number,” “Deposit to” and “Amount received.”

When finished, select the “Credit Memo” that you want to apply to the invoice. Double-check to ensure the amount of the memo is correct, after which you can click “Save and close.” Congratulations, you’ve just applied a credit memo to a customer’s invoice.

There are times, however, when you may want to apply a delayed credit to a customer. This will allow you to use the credit as a line item on the customer’s next invoice. To apply a delayed credit, select the (+) icon at the top of the screen and choose “Delayed Credit.” Enter the requested information and click “Save and close” when finished. Next, go back and click the (+) icon again and choose “Invoice.” Enter the customer from the drop-down menu and complete the requested fiends. Under “Unbilled charges and credits,” click the (+) icon to open the invoice, after which you can click the box next to the credit that you want to apply. Once the invoice is open, click “Save.” Next, click the (+) icon and choose “Delayed Charge.” You’ll be prompted to enter information about the delayed credit. When finished, click “Save and close.”

After reading this, you should have a better understanding of credit memos and delayed credit in Quickbooks. If you have trouble using this tools, contact your Quickbooks vendor for assistance.

Did this tutorial work for you? Let us know in the comments section below!

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