Create a Credit Memo in QuickBooks Online

[@tonykals]

This worked well, thanks. I have realised from your video that the credit note has to be created separately and applying it during payment is when the invoice is affected. QuickBooks needs to work on their 'Link' function as it doesn't work.

[@GentleFrog]

Agreed! I often have issues with linking. You can always click "Feedback" under PROFILE in the settings menu and let Intuit know how you feel.

[@yhoufeng]

I appreciate this tutorial. However, I have questions. 1. How do I create a commission credit memo for the customer? 2. How to close it by a check payment? Thanks

[@GentleFrog]

If you're using a check then a refund receipt would be a better solution: kzbin.info/www/bejne/jYHOmp-PZ6uUgLM Credit memos are used when you want to give the customer a credit that then gets applied to a future order. Refunds are used when you are giving money back to the customer by cash, check, etc.

[@yhoufeng]

@@GentleFrog 👍Thank you so much!

[@IndhiraM-lo1ly]

I would like to know how to create a credit memo from an over payment. I booked the payment to my client's invoice but the client over paid it and now the remaining funds show as unapplied. I would like to create a credit memo of these funds for a future invoice for this client. Thank you in advance!

[@GentleFrog]

When someone overpays it automatically creates a credit for the amount overpaid. You don't want to create a credit memo for this or you'll be creating an ADDITIONAL credit. The next time the customer gets invoiced you can apply the overpayment to the new invoice. Here are the instructions from Intuit on this: quickbooks.intuit.com/learn-support/en-us/help-article/customer-refunds-credits/handle-customer-credit-overpayment-quickbooks/L1Z4OZkKB_US_en_US

[@gonzalex2002]

question how to make a report of all credit memos for the entire year Where can I find them to know which invoices this credit is applied to? I know I can go one by one but I want to know if there is a faster way to make a report

[@GentleFrog]

I notice you've commented on a QBDT video and a QBO video, which one are you using?

[@gonzalex2002]

@@GentleFrog QBO

[@ZaScene]

Hi Rachel, Great explanation, but I have a question and I will appreciate your quick reply. I issued a sales inv, then received the amount in my bank account, after 2 days the customer wanted to cancel it. I issued a refund receipt and then a credit memo and linked it to the invoice payment I received. This way my bank matches. but when I open the customer statement I find that there is 1 amount on the debit side BUT 3 amounts on the credit side and the customer statement is a mess. any tips on what i did wrong?

[@GentleFrog]

We can get it straightened out with a 15-minute meeting. I'll need to take a look to see what's really going on: www.gentlefrog.com/meeting

[@user-ce2hq9ly5c]

We are an upholstery shop. We give an estimate and require 50% down to start project. How do I give a Credit Memo receipt to the customer and can I reflect the down payment to the estimate or do I have to generate an Invoice so that I can apply the 50% down in the final Invoice. Many times our estimate and final invoice are not the same figure. Thanks

[@GentleFrog]

Hi Carlos, you do not want to issue a credit memo for this. Credit memos are for things that have already been paid for. What you want to create is a prepayment. I have a video on creating prepayments in the Canadian version of QuickBooks: kzbin.info/www/bejne/qHmooWuifMiJa6c US QBO is almost identical there are just a few things that are slightly different like date formatting, how taxes are handled, etc. You should be able to follow along. If you're having trouble you can schedule a call and I can walk you through it. I'll be out of the office for a few weeks but I'll be happy to help you out when I return: www.gentlefrog.com/meeting/