Credit Memo in QuickBooks

A credit memo in QuickBooks is a payable amount post that is combined with the invoice of the customer.

In much simpler terms, a credit memo is a document that is issued by the seller to the buyer under certain terms and conditions. QuickBooks accounting software that highlights the direct sales of the business and also keeps track of the inventory and other details of the stock. There are reporting tools that allow the software to generate accurate real-time reports for better decision-making. In this piece, we will share the procedure to create credit memos and how to apply them to the invoice.

How to Enter a Credit Memo in QuickBooks?

  • The (+) icon on the top resembles an ad, select the icon and then go to the credit memo.
  • The next visual will ask you for the details of the credit memo.
  • Fill in the details and tap next.
  • Save the memo and then exit.

How to Apply Credit Memo to an Invoice in QuickBooks?

  • The (+) icon on the top is similar to add, select the icon, and then go to receive payment.
  • The following details will be asked by the software:
  • In the customers, the field adds the customer for whom the credit memo is.
  • In the date, the column changes the date if needed.
  • The fields that have to be left alone are payment method, reference number, deposit to, and the amount received.
  • It is not mandatory to fill out the memo option.
  • Now mark the credit memo which you want to highlight with the invoice.
  • Confirm all the details on the credit memo created.
  • Apply the memo and then verify the amount on the invoice after considering the credit memo.
  • Save the invoice and then exit.

Invoices and Credit Memos are just made when you associate with QuickBooks Financial and utilize the record installment type. So in case, you do join the two, make your discount exchange. This will give the client credit that can be utilized to rebate another exchange by utilizing the record installment type for the credit.

To add a credit memo, you can relate to the article, or in case you are stuck, the QuickBooks support team and get assistance from the experts of the domain who are available 24/7 with better understanding and knowledge.