Quickbooks what is a credit memo

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Read similar articles. This quick tutorial show you how to add users to a Paypal Business Account and how to edit user's permissions. Rachel Barnett October 18, You can create a credit memo to immediately reduce a customer's current balance.

Or you can enter a delayed credit so they can use it in the future. Note : If your customer simply wants a refund, here's how to return your customer's payment. In QuickBooks, you can give credit using a credit memo or delayed credit. Here are the key differences:. If you turned off the feature, here's how to manually apply a credit memo to an invoice:.

If you haven't already, you can tell QuickBooks to automatically apply credit memos to customers' balances or open invoices. To turn on the credit memo auto-apply feature:. Tip : You can turn off this feature if you want to decide which open invoices you want to apply credit memos to. If you turned on the credit memo auto-apply feature, QuickBooks handles this for you. Your work is done and QuickBooks applied the credit for you.

In earlier articles within this series we looked at the workflows for 'sales' using Sales Receipts as our first example in which we also introduced undeposited funds. In each of those cases our illustrated workflows ended each with a Bank Deposit. In last week's article we stepped away from the 'sales cycle' to make certain that we all had the proper workflow for handling Bank Deposits and Undeposited Funds correct in an attempt to prevent the all too common problems associated with those procedures.

This week we want to return to another aspect of the sales cycle and look at Credit Memos and Refunds because sooner or later a customer or client is going to either return merchandise or be due a refund for services rendered. Credit Memos are used when you are refunding a Customer, but maintaining the difference as a store credit to be applied to a future purchase.

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