Procedure To Create a Credit Memo in QuickBooks Online

A credit memo in QuickBooks is a document that records a credit or refund given to a customer. It is used to reduce the amount owed by the customer or provide them with a credit that can be applied to future purchases or invoices. The procedure to create a credit memo in QuickBooks Online is a straightforward process and requires adherence to certain steps discussed within the ambit of this article.

What are the Steps to Create a Credit Memo in QuickBooks Online?

• Click on the "+ New" button.

• Advance to the "Customers" section.

• Herein, opt for "Credit memo."

• Fill in the necessary details in the credit memo section. These details encompass the customer's name, the products or services being credited, quantities, and other relevant details.

• Hit on "Save and Close" to save the credit memo.

How Can I Apply a Credit Memo to an Invoice?

• To begin with, search the invoice associated with the credit memo.

• Subsequently, hit on the "Receive Payment" option.

• The window will display outstanding transactions and available credits.

• Check both the invoice and the credit memo to apply the credit.

• Click "Save and Close" to save the changes.

• Note: If you want to use different products in the credit memo, you can create a credit product and use it when crediting customers. This allows for customization of the credit memo to suit specific needs.

• After following these steps, the invoice status will show as "Paid" in the Sales page, and the credit memo will be closed.

How to Examine If the Invoice was Paid with a Credit Memo?

• Open the invoice in QuickBooks Online.

• Click on the blue payment link in the Payment Status section.

• The payment details will be displayed.

• Check how the payment was made in QuickBooks Online by looking at the date and the Receive Payment screen, which will show the credit memo used to pay the invoice.

These steps provide a simple guide to create a credit memo in QuickBooks Online. For further assistance, you can contact our QuickBooks Technical Support staff at the helpline +1-800-615-2347.