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How to Create a Credit Memo in Your QuickBooks

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2024-02-22 15:36:30 • Filed to: Quickbooks Solution • Proven solutions

Being able to keep track of every part of your business finances is a significant step to becoming successful. A credit memo puts you at the top of the whole process as it helps you keep track of your entire sale, the return of goods and payments. Below is how to enter a credit memo in your QuickBooks.

How to Enter a Credit Memo into Your QuickBooks

  • On the QuickBooks homepage under the customer panel, select refunds and credits.
  • From the drop-down option in the customer: job, click on the customer.
  • Fill the credit memo form appropriately where applicable.
  • Choose the appropriate channels through which the credit memo should be distributed to the customers.
  • Verify the amount on the credit memo and select save then close.
  • If there happen to be a balance in the customer’s account, a prompt requiring how to apply it will appear. Choose the right option and click Ok.
  • Check the Open balance report or check the customer’s transaction history to confirm whether the credit memo has been entered appropriately.

How to Create Credit Memo for Items That Was Returned

  • Under the customer menu, click on the create credit memos or refunds.
  • From the drop-down option in the customer: job, click on the customer.
  • Input the returned items in the right area then click on save and close.
  • Go to the available credit window and select the appropriate option below;
  • a) Retain as an available credit: this will reflect as a negative balance in your register. However, you can use the credit to pay for other transactions.
    b) Give a refund.
    c) Apply to an invoice.
  • Then click on Ok.

How to Issue a Refund Check When There Is an Overpayment

A refund check is usually issued when there is an overpayment, and the customer demands their money back.

  • Under the banking menu, click on write checks.
  • Input all the necessary required information.
  • Then you link the check and the overpayment.
  • Then click on save and close.
  • Alternatively,
  • Under customer, select received payments and click on overpayment transaction.
  • Select refund the amount to the customer from the overpayment section drop down.
  • Click on save and close.
  • Go to the issue a refund window and input all require information and click on Ok.

Best Alternatives to the QuickBooks: FreshBooks

FreshBooks one of the best alternative to obtaining the top-notch services provided by QuickBooks. It is easy to use accounting software created with the aim to help small businesses grow and become better. They provide the best services to you at a lower price, giving you the chance to make all the necessary decisions without any compromise.
Some of the features of the FreshBooks that makes it service one of the best include:

  • Billable hours.
  • Expense categorization.
  • Team roles
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  • Proposals and much more.

FreshBooks gives you the best services among every there alternatives there are in the marketplace.

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Elise Williams

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