The program uses credit memos when a refund is given to the customer. 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.
Voiding, deleting or reversing a credit will help you reduce the available credit balance to make you even in your accounts once again.
Steps on How to Reverse a Credit in QuickBooks:
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.
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 your 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 still 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 and you will successfully be able to fix your query on “how to reverse a credit in QuickBooks”.
How to Unapply a Credit to an Invoice in QuickBooks?
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:
- Choose the credit memo following the steps above.
- Press the combination of keys on your keyboard (Ctrl+H) and this will show you the history of your credit selected.
- Right-click on the invoice shown and choose to open it.
- Navigate from apply credits button to previously applied credits.
- Clear your selection for the credit you would want to unapply and click done.
- Save your settings and you will be able to unapply a credit to an invoice in QuickBooks.
Hope your query “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 Proadvisors. Our QB professionals are certified, technically qualified and experienced in resolving your issues.
Thus in case you are still stuck with your error then get all the help you need with just a phone call.