QuickBooks program uses credit memos when a refund is given to the customer. Let’s start our article about reversing a credit in QuickBooks. This refund can either be in the form of cash or store credit. Since credit appears in the AR section of QuickBooks, they increase the overall credit available for that customer. If the said credit gets wrongly registered then you always have the privilege to delete or void that entry. If you don’t know how to reverse a credit in QuickBooks then follow the steps below and you will be able to do that with ease.
Steps on How to Reverse a Credit in QuickBooks
Please note: Reversing a credit is a much-complicated process and it won’t help you much with your available balances. If you need to rectify your entry or simply want to balance your statements then you better delete the same and redo it if needed. Learn how to reverse a credit in QuickBooks.
With that said, let’s follow along and find out how to delete a credit in QuickBooks
- Login to your QuickBooks companies accounts dashboard.
- Click on the customer’s tab from the main navigation menu.
- Choose customer center from the drop-down window.
- You will see a different window appearing. Click on the Customer: Job button.
- You will get a list of all the customers. Choose the one with the available credit that you want to delete.
- Click open the customer window and you will see the list of all the transactions related to him.
- Click on the credit memo tab that you wish you delete.
- Choose the pencil icon and you will see an edit window appearing.
- Scroll down a bit and choose from the following options:
- Delete available credit: This will delete the credit transaction that you may have wrongly entered. Deleting your credit figure for the said customer will bring down his Cr. Balance and if necessary you can start from scratch and write a different entry.
- Void available credit: Choosing this option will simply void your entry meaning your credit balance will remain visible and reduced but this won’t affect your balances.
- Choosing any of the options above will ask you to confirm your action. Click yes and proceed.
- Save your preferences.
Method to Reverse a Credit Memo in QuickBooks
Though the above-given method is all you need to resolve your query, in case you find it difficult following the method above, then check out these steps:
- From the top of your QuickBooks dashboard, choose the magnifying glass and then click on the advanced search option.
- From the dialogue box that appears, choose the Credit button.
- Type in the name of the vendor, whom you think has the credit available that you want to delete.
- Now hit the search button to find the memo.
- Under the memo option, click on the edit button and this will give you the option to either void or delete the memo.
- Choose the preferred option and your query will be sorted.
How to Remove or Unapply a Credit to an Invoice or Bill in QuickBooks Desktop
There may be times when you would simply want to know how to unapply a credit to an invoice in QuickBooks instead of just reversing your entry. If this is so then these simple steps will help you do so.
Step 1- Remove a credit from an invoice
- Press Ctrl + H to display the transaction history.
- Select Apply Credits when you double-click the invoice.
- Clear the selection for credit on the Previously Applied Credits window.
- Select Done from the Apply Credits window.
- Select Save and Close on the invoice.
Step 2- Remove a credit from a bill
- Locate the vendor’s credit card.
- By selecting the Bill radio button, you can change the transaction type from credit to bill, then select Save & Close.
- Select the Credit radio button on the bill and change the transaction back to credit. Save and close the bill.
- Select Yes when prompted about changing the transaction.
Hope your query on how to reverse a credit in QuickBooks is now all sorted. In case you still have any doubts or facing any issues with your program then get in touch with our QuickBooks Experts. Our QB professionals are certified, technically qualified, and experienced in resolving your issues.
