How To Create, Apply, And Print A List Of Credit Memos In QuickBooks?

A credit Memo is an accounting document in QuickBooks purposely been utilizing for getting/requesting a refund if a customer paid more. In general, Credit Memos are a type of transaction that is effective in tracking customer payments and payment reductions. However, it is essential to create Credit Memos In QuickBooks so that you can handle the things like customer returns and refunds effortlessly. In this blog, we’ll enlighten you on how to create and apply credit memos in QuickBooks without any hindrance. Thus, feast your eyes here!

Why Credit Memo Is Important To Issue In QuickBooks?

Technically, issuing a Credit Memo In QB is extremely crucial to managing the customer’s current balance. Here’s the list of positive impacts why you should create Credit Memos:

  • You will find a direct way to track your current, past, and future credits.
  • Straightforwardly adjust the customer’s open balance.
  • It is so obvious that the invoices won’t be deleted or edited after they are sent to customers. So, by using Credit Memos you can keep records in your hand.
  • If the seller has issued credit memos, then the buyers can anytime exchange the items or services.
  • If you use Credit Memo In QuickBooks Desktop, your customers will get help in reducing the payable amount.

Many customers prefer getting credit despite a refund so they can further use it to reduce the balance on their next invoice. That’s why; you need to create a credit memo in QuickBooks to provide this facility to your customers. So, the customers can immediately reduce their current balance.

How To Create A Credit Memo In QuickBooks? A Complete Guide

If you wish to create a Credit Memo In QuickBooks Online, then follow the below-noted simple and proactive ways. Let’s begin:

  1. First and forecast, sign in to your QuickBooks Online account.
  2. Click on the “+” icon at the top-left corner.
  3. Then, click on the “Credit Memo” tab.
  4. Under the “Customer” drop-down, select the customer name for whom you want to create a Credit Memo In QuickBooks.
  5. After that, enter the credit memo details such as “Credit Memo Date”; “Billing Address”; and “Credit Memo Amount.”
  6. Also, select the items from the “Product/Service” drop-down menu.
  7. After providing all the necessary details, click on the “Save and close” button to end up the Credit Memo window.

Finally, the credit memo has been created in QuickBooks. So, now, you can hassle-freely handle the credit for your customers.

Also Read: Import Credit Card Transactions Into QuickBooks

Handle The Credit The Way You Want

In the Available Credit window, you can choose one of the following options to handle the credit as per your requirement. Let’s begin!

Option 1: Retain As An Available Credit

If you want to retain a credit memo as the available credit in QuickBooks, follow the below-noted steps:

  1. Go to the “Customers” section in QuickBooks.
  2. Then, click on the “Receive Payments” option.
  3. Choose a customer by clicking the “Received from” dropdown.
  4. After that, click the “Discounts and Credits” tab.
  5. Now, on the “Credit” tab, check the credit for which you wish to apply.
  6. Click “Done”.
  7. If you get a confirmation prompt, then click “Yes”. The amount will be applied to the invoice automatically.
  8. In the end, click the “Save & Close” button.

Option 2: Give a Refund

If you choose this option to refund, then the refund can be generated in a check as well as in cash or on a credit card. So, here is the proactive ways to use this option for your created Credit Memo In QB:

  1. You will see the check is already filled out.
  2. Click “OK” to move ahead.
  3. Now, link the check to overpayment.
  4. Afterward, go to the “Customers” section and choose the “Receive Payments” option.
  5. From the “Received from” dropdown, select “Customer”.
  6. After that, click the “Discounts and Credits” icon.
  7. Now, inside the “Available Credits” section, choose the check that you just created.
  8. Then, click the “Done” button.
  9. You will get a prompt to confirm the transfer, so, click “Yes”.
  10. This will apply the amount to the invoice automatically.
  11. Finally, click the “Save & Close” button.

Also Read: Record Vendor Refund in QuickBooks Desktop

Option 3: Apply A Credit To An Invoice

If you want to learn how to Apply Credit Memo To Invoice QuickBooks with ease, look for the following guidelines noted underneath:

  1. When you choose to Apply a Credit Memo To The Invoice, then ensure you choose the “Customer: Job” option. Doing this will open the “Apply Credit to Invoices” window.
  2. Thereafter, choose the credit you want to apply automatically for the customer.
  3. Finally, hit the “Done” button.

Learn How To Apply Credit Memo In QuickBooks Manually

Follow the beneath-mentioned steps to Apply Credit Memo In QuickBooks manually:

  1. First, sign in to your QuickBooks online.
  2. Next, click on the “+ New” option.
  3. Then, select the “Receive Payment” option.
  4. Now, in the “Customer” drop-down, select the customer.
  5. Thereafter, go to the “Outstanding Transactions” section, and click on the right invoice to which you want to apply the credit memo.
  6. Afterward, from the “Credits” category, click on the credit memos you wish to apply.
  7. Now, in the “Payment” field, enter the amount of the credit you want to apply.
  8. Then, keep the “Reference no”, “Amount received”, “Payment method” and “Deposit to” sections empty.
  9. Enter the payment date and complete filling up the rest of the form.
  10. Check all the details and the amounts you have typed into the respective fields. Also, make sure the credit memo amount tallies with the original amount.
  11. Once you did, click the “Save & Close” tab.

Also Read: How To Write Off Bad Debts In QuickBooks Online

How To Generate Credit Memo Report In QuickBooks?

QuickBooks shows you the list of the transaction and report of other necessary details so you can customize the reports anytime. However, this can be done to display Credit Memo In QuickBooks Online for both the customer and Vendor. Here’s the comprehensive procedure to create a credit memo report to run it:

Transaction List By Customer

  1. First, click the “Reports” tab in your QuickBooks account.
  2. Then, go to the “All Reports” section and give click on the “Review Sales” tab.
  3. Choose the option of “Transaction List by Customer”.
  4. And then, tap the “Customize” button.
  5. Click on the arrow next to the “Filter” tab.
  6. Tap the “Transaction Type” dropdown arrow.
  7. Then, click on “Credit Memo”.
  8. Finally, click the “Run Report” tab.

Transaction List By Vendor

  1. Click on the “Reports” tab.
  2. Go to the “Vendors & Payables” section and choose the option of “Transaction List by Vendor”.
  3. Click on the “Customize Report” tab.
  4. Click on the arrow next to the “Filter” tab.
  5. Then, start customizing the report with date, name, transaction type, and posting status.
  6. After that, click the “Transaction Type” dropdown menu.
  7. And press the “OK” button to run the report.

Now that, you have created the memo line so the second report will provide the details. For that, you have to go through the following steps:

  1. Click on the “Reports” tab.
  2. Go to the “Accountant & Taxes” section.
  3. Then, select the “Transaction Detail by Account” option.
  4. Click on the “Customize Report” tab.
  5. Click the “Filters” option.
  6. Here, you can customize the detail by “Date” and “Transaction Type”.
  7. Finally, press the “OK” button.

After completing these steps, the details according to the filters you have applied will immediately appear. Thus, feel free to analyze the detailed info.

Also Read: QuickBooks Balance Sheet

How To Delete Credit Memo In QuickBooks Online?

If you ever want to discard the created Credit Memo In QuickBooks Online, implement the following course of action:

  1. First, launch QuickBooks Online.
  2. Next, press the “Ctrl + H” keys altogether on your keyboard.
  3. Now, you can view the history of “Credit Memos”.
  4. Double-click on the invoice you wish to delete.
  5. Then, click on the “Apply Credit” tab.
  6. In the “Previously Applied Credits” page, click on the “Delete” tab for the current credit choice.
  7. Then, click the “Save & Close” button.

How To Print A List Of Credit Memos In QuickBooks?

There is a Print Forms feature available in QuickBooks through which you can print a list of customer credit memos. Here’s what to execute to get a printout of a customer credit memo:

  1. First of all, go to the “File” menu and click the “Print Forms” option.
  2. Click the “Credit Memos” tab, and then hit “OK”.
  3. Click the “Printer Name” drop-down arrow and select the printer to use.
  4. After making a selection, click “OK.”
  5. Now, click the “Options” button. Make the changes to the paper orientation or graphics printing options as per your need.
  6. Then, tap the “OK” button.
  7. Now, enter the number of copies into the “Number of Copies” input box.
  8. Click the “Preview” button to preview the report.
  9. Finally, click the “Print” tab. The report of credit memos is sent to your printer to print.

What Accounts Does A Credit Memo Affect In QuickBooks?

Usually, the Receivable Accounts get affected when you create a Credit Memo and use it in QuickBooks. It happens because the credit memo reduces the amount that the buyer owes to the seller. That’s why; the seller needs to keep an eye on the open credit memos at least at the end of the month. This is strongly recommended because it can affect the aggregate dollar amount of invoices outstanding in your bookkeeping.

Also Read: How to Fix Online Banking Errors in QuickBooks

A One-Stop QuickBooks Online Support For Credit Memos In QuickBooks

Credit Memos are a quite productive tool for small and medium-sized businesses, as they make it easy to adjust/manage invoices. It keeps all the records safe and accurate. However, creating and applying Credit Memos In QuickBooks is even easier and straightforward. We hope, the aforesaid guide is sufficient for you to understand what is Credit Memo, and how to create, apply, print, and delete it in QuickBooks.

For further queries and additional technical assistance, consult our adroit QuickBooks Online Support team.

Frequently Asked Questions

1. What Is Credit Memo In QuickBooks?

A credit Memo is also known as Credit Note, a transaction document that reduces the customers’ or clients’ total account balance. Credit Memos can technically be applied for future purchases of goods or services.

2. Why Are Credit Memos Issued?

Credit Memos can be issued for several possible reasons. The main reason for it would be the buyers’ involvement in returning products, a price dispute, or a marketing allowance.

3. How To Customize Credit Memos?

In general, we cannot Customize Credit Memos, but still, customization for credit memos picks up from the Standard/Master template. So, to customize Credit Memos in QuickBooks, edit the Standard/Master template according to your needs.