Hello my QuickBooks Friends!! At your request, I have shown the world exactly how to manage credit memos in quickbooks online. It's the clearest possible explanation about every asspect of credit memos to customers. Please tell me if there's a video you want me to post or a quickbooks answer to a quickbooks question you need. -Mark
Mac version does not include loan manager. Use excel search for the "pmt" function in excel. There are tutorials that show how to use it. I also have a template you could use for loan amortization. you can email me at: worldwidequickbooks@gmail.com
Just discovered this channel and I can tell it will be a lifesaver, since I really don't know what I'm doing. My question is, how do I determine when I should use a Credit Memo vs a Delayed Credit? We invoiced a client, and they paid the original invoice. Later, I learned they were billed for too much. They will be invoiced again next quarter, so they don't want a refund, just a credit to their account. Should I create a credit memo and let it sit open for several months, or create a delayed credit?
Thank you for the kind words, and thank you for asking, if you click on the top right corner of this video you will get the link to the full Advanced playlist and you can look down the list to see the video on delay charges because I believe I distinguish between delay charges and credit memo in that video Actually you should watch the video on delay charges and delayed credit and if it does not mention it I can send you the video that does In the meantime I suggest you try it each way separately and see which one works for you regarding the reports that you have and what you need Please let me know
@3:31, you state that the balance after should be *AR = $23,040.00 and Video Income = $47,100.00. @4:54 after you made the transactions, your AR = 22,140 and video income = 46,200.
Thank you but don't worry because if you've been following step-by-step then you'll say that the numbers on the screen are correct and match what's in your quick books online. Mark
Aha! I just found my answer below. I just put the different account that's appropriate for the CM, the amount and save. Then I apply it to the correct invoice. Thank you, again.
Thanks for the video. Hoping you can help me with my specific problem. We are a contracting service and our customers pay us an deposit before we start work. Now this money received comes in through my bank feed and I need to review it and add it so that it shows up on my bank account. When I open the transaction, the choices are only two: either deposit or sales receipt. Neither of these 2 give me a credit to the customer. Is there anyway that I can do this without first having to do a "receive payments" step beforehand so that QB can then match the two up when going back to bank feeds?
Thank you Elinza, If you choose to record a "depsoit" for a specific client, a credit is automatically generated in the client's account. You can apply that credit to the invoice when you make the first job invocie later. Watch this and maybe the whole playlist but this video should explain it. ruclips.net/video/4sQfXx9pzWM/видео.html However, if your asking about an actual credit memeo document just to be able to give the client some proof of pre-payment, then I suggeths that you just print something ffrom a pdf or excel sheet just to give them proof of payment and let QBO record things the way that it is shown. -Mark
@@worldwidequickbooks Thanks, I tried to record it as a deposit and went back to the customer transaction list to see if the credit is there, it does not show under the customer transactions. It also does not affect the customer's balance, if the deposit was say 100, then the balance in the customer field should show -100. But it does not. What am I doing wrong?
Just wanted to say 'Thanks!' for putting together this description - lots of content about specific situations to use Credit Memo, but this was the clearest way to understand what and how it's doing. I feel like I got a new tool to use in my self-managed accounting adventures! :0)
Oh wow thank you for the kind words and I'm very glad it helped you and I hope you will always click like after watching each one to help support the free channel for everyone and please subscribe Mark
Thank you for this video. I have a client that uses distributers to sell their product. When they are paid they often have deductions for advertising costs paid by the distributer, or returned out-of-date products. Since advertising was not on the original invoice, what do I do about the category on the Credit Memo, or should I go back and add advertising to the Invoice with a negative amount? Thank you,
The credit memo can only reverse all or part of a future or past invoice. No invoice, no credit memo. Only what's relevant to the invoice should be on teh credit memo. You need to record the advertising separatly. -Mark
I created credit memos often; however they are not always used right away even if they have an invoice with an open balance. I know the equivalent JE that happens when creating the credit memo, but what is the JE equivalent when you actually apply the credit to the invoice??
Actually a journal entry is not necessary in any case It will be clear to you as you. Click in the top right corner of the video to get the link to the full playlist Once you watch the accounts, receivable playlist in proper order. You will see how everything fits in with credit memos and how you can apply them later to future invoices if you want to Bark
You are the best teacher on QB so far I have seen. Thank you so much for all your effort. I was doing this class where I faced a problem. My credit memo does not show up in Open invoices report instead it is deducting $900 from the $3000 invoices of Candy and showing it as $2100. Could you please tell how to fix that?
Yes I can help you and thank you for asking In the account settings window or company settings window from the car wheel, you can adjust how the credit memos are automatically applied to the bills and invoices from customers and vendors Sometimes they automatically apply it to the oldest one or sometimes they don't apply it at all But that's a choice you can make in the proper account settings window if you open it up and browse through it to see the options The reason this video looks different is because they make the default setting for how the payments are applied to inquiries, to be different for each person's account. So some peoples account will behave as this video and other people's account will behave with the different default settings So see if that works and please confirm that you are OK and I'm here if you still need help Mark
Thanks for the video, but I have a question, I hope you can help me, I created a Credit Memo and already applied it to a certain invoice, but when I open the Open Invoices report the CM still appear. Hope you can help me.
Thank you but for now, the only advice I have, is to first check that it's really the correct memo and invocie. Also, you may need to try to refresh your browser or clean the cookies; maybe it's rememering the prior report. You can check tyhis in the "receive payments" window to see if the correct memo was matched to the correct invoice. Please let me know if ou still don't see it, we will think of somehting else. -Mark
How to record a charge back on QBO. A customer charged back an amount, and the bank withdrew the funds and gave to back to the customer. The QB record shows that the bill was paid. A credit memo seems to give money back to the customer, however, the customer already has received her money back. Do I simply write up a refund receipt?
In that case I recommend recording a refund receipt just like you said That will make your bank records and your income correct after the money was given back to the customer after a sale that never panned out If you want to see the video on refund received, double click on the top right corner of this video to get the full advanced playlist and the videos right before this one shows all about refund receipt Let me know if you need anything else and I hope you will click like after watching each one and please subscribe Mark
Yes, cost of sales goes down when you return or give a credit exactly the opposite of how cost of sales goes up when you make the original invoice. Make sure you have the link in the top right corner to the entire playlist so that you can see the whole contact and that will help you. Mark
Thank you for the videos you are making. I really appreciate it. I have a question how do you record a cc declined fee? Lets say a customer owes you $300 and they pay through credit card mx merchant. The amount is declined. How do you record the declined fee of $25 in qbo? Thanks
That would be the same procedure as a bounce to check and when I get back in front of the computer I'll send you the link to my bank playlist that shows what to do with a bounced check it's the same idea
Great video. BUT... How do you get that Credit Memo to go to a Discounts G/L account instead of a Sales G/L account? Because you chose "Video Income" as your Product/Service, presumably the original Invoice is going to a Sales account on the P&L. And the same goes for your Credit Memo. But what if you want the Credit Memo to go to a "Discount" account?
If you want the credit memo to decrease a different account than the account on the original invoice that the credit memo will be applied to, then you have to put a different item on the credit memo and connect that item to the discount account when you set up that item. So put on to the credit memo the item that's connected to the discount account and then after you save the credit memo you can then apply it to the correct invoice
@@worldwidequickbooks Thanks for responding! Yes, I thought of that, but if the item you are crediting on the original invoice is inventory, then your inventory count would be off, correct? Btw... That's the real reason I asked the question. Wanted to know how to apply a credit memo to an inventory item invoiced, but show that credit memo as a discount/return while keeping inventory count the correct.
@@andybelair9367Your inventory will not be off. If I understood you correctly, you are giving credit so that they PAY less without returning any inventory. Therefore what I suggested is exactly that result. Applying the credit will not effect inventory, Making a credit memo where the item goes to a disocunt account will not change the quantity. Try it and you will see. Mark
AFTER this process will you issue Betty a physical check with the amount of the refund? Because what you did was only execute the process in quickbooks.
Yes, Click in the top-right corner of the video to get the link to the full pliylest. Each video is only a few minuets but if you watch it in proper order, you will see how it turns out. -Mark
We have a customer who paid their invoice last year, there was an issue with some gear so we had to deal with the vendor to get reimbursed in order to give the customer a credit. Due to vendor issues and the Covid debacle, we did not receive the refund from the vendor until this year. The customer is good with a credit on their account, but probably won't order anything for a while due to the Covid debacle. Short story long, can I create a credit memo for the customer for when they do order in the future, and at that time, use the proper method to reduce their bill? Thanks!
Thank you Dominique, People shoule know that your records and your relationship with customers has absolutely nothing to do with your relationship with vendors. Just record credits for the customer in the way you described;; then, if the vendor does not honor the credit, it should be written off as a loss.
@@worldwidequickbooks Thank you. I will create the credit and wait on the customer to order sometime in the future. They are a youth camp and it will be some time before they order. However, please don't misunderstand, the vendor did honor the credit/refund, it was literally delayed by the Covid debacle. We did not hold back any credit due to the customer due to the delay by the vendor. As you said, the relationship with the customer has little to do with the vendor, unless the vendor is delayed due to unforeseen circumstances and this causes delay with actual product delivery to the customer. Unfortunately this has been the norm for a few months as of late. But our customer received a credit right away, regardless of the vendors delay in reimbursement. Thanks for the instruction.
One other request, in this video you mention what statements would look like after doing the credit memo/zero payment procedure. Would you be so kind as to direct me to that video? Before we submit a new invoice to the customer, it would be nice to see what it should look like to ensure it is correct. Thanks so much.
My client returned the item they originally purchased and took cheaper item instead. I created credit memo and applied to a new invoice. But I have extra money to refund. I recorded as a cheque but client account was not deducted and showing I still owe money to them. How to deal with such refund? I can't find any videos about it.
Thank you arena The video that shows how to give a refund after a credit memo or a remaining credit is available, is right there in the same playlist You can find the link to the whole playlist directly under the 1st paragraph of the description field or you could find the link to the whole playlist that this video is a part of, by clicking in the top right of the video Once you get to the playlist you will see, then very close to this video here, is a video that shows how to give a refund to a customer for an existing credit. The remainder of the credit memo after the invoice for the cheaper product, if your product, is the existing credit that you would write the refund check for Please confirm you found the video if not I'll send you a link in your email to the specific credit memo refund video that you need Don't forget to click like after watching each video and please subscribe Mark
You may have accidentally aplied it whne you created it. You can delete it abd re-enter carefully to be sure that you do not apply. Look closely at the video and see the differences when you re-enter it. -Mark I hope you will subscribe and clikc "like"
How do you clear a system generated credit memo due to payment receipt error? long story... but end result is I have no invoices to apply to these credit memos and need to correctly remove them; big problem.
If you owe the credit back to the customer, then do what this playlist shows. You can get ideas how to do it by clicking in the top-right corner of the video to see the advanced playlist that this video is a part of. Look at the videos before and after this one. If you do NOT owe the credit back to the customer, then you need to make an adjusting entry, possible to owner''s equity, in order to remove it and "write it off". Tell your tax professional and ask her/him if you should just write it off to equity as a mistake. I can't comment for sure if I don't really know the full context. -Mark -Mark
Thank you for asking. This video shows how to refund a paid invoice using a credit memo. It's the proceedure you need ruclips.net/video/BO1XKrfE4DI/видео.html Please confirm and I will be here for folow-up questions. -Mark
Hello my QuickBooks Friends!! At your request, I have shown the world exactly how to manage credit memos in quickbooks online. It's the clearest possible explanation about every asspect of credit memos to customers. Please tell me if there's a video you want me to post or a quickbooks answer to a quickbooks question you need.
-Mark
I'm looking for "how to use loan manager in mac" I'm struggling trying to a set up my loans and credit cards for my home and company. Please help
Mac version does not include loan manager.
Use excel
search for the "pmt" function in excel.
There are tutorials that show how to use it.
I also have a template you could use for loan amortization.
you can email me at:
worldwidequickbooks@gmail.com
One of the best person to learn quick books
Thank you I'm glad it helped and I hope you will click like And subscribe
Just discovered this channel and I can tell it will be a lifesaver, since I really don't know what I'm doing.
My question is, how do I determine when I should use a Credit Memo vs a Delayed Credit?
We invoiced a client, and they paid the original invoice. Later, I learned they were billed for too much. They will be invoiced again next quarter, so they don't want a refund, just a credit to their account. Should I create a credit memo and let it sit open for several months, or create a delayed credit?
Thank you for the kind words, and thank you for asking, if you click on the top right corner of this video you will get the link to the full Advanced playlist and you can look down the list to see the video on delay charges because I believe I distinguish between delay charges and credit memo in that video
Actually you should watch the video on delay charges and delayed credit and if it does not mention it I can send you the video that does
In the meantime I suggest you try it each way separately and see which one works for you regarding the reports that you have and what you need
Please let me know
@3:31, you state that the balance after should be *AR = $23,040.00 and Video Income = $47,100.00. @4:54 after you made the transactions, your AR = 22,140 and video income = 46,200.
Thank you but don't worry because if you've been following step-by-step then you'll say that the numbers on the screen are correct and match what's in your quick books online.
Mark
Aha! I just found my answer below. I just put the different account that's appropriate for the CM, the amount and save. Then I apply it to the correct invoice. Thank you, again.
Glad to help, I hope you will click "like" and subscribe
Thanks for the video. Hoping you can help me with my specific problem. We are a contracting service and our customers pay us an deposit before we start work. Now this money received comes in through my bank feed and I need to review it and add it so that it shows up on my bank account. When I open the transaction, the choices are only two: either deposit or sales receipt. Neither of these 2 give me a credit to the customer. Is there anyway that I can do this without first having to do a "receive payments" step beforehand so that QB can then match the two up when going back to bank feeds?
Thank you Elinza,
If you choose to record a "depsoit" for a specific client, a credit is automatically generated in the client's account. You can apply that credit to the invoice when you make the first job invocie later. Watch this and maybe the whole playlist but this video should explain it.
ruclips.net/video/4sQfXx9pzWM/видео.html
However, if your asking about an actual credit memeo document just to be able to give the client some proof of pre-payment, then I suggeths that you just print something ffrom a pdf or excel sheet just to give them proof of payment and let QBO record things the way that it is shown.
-Mark
@@worldwidequickbooks Thanks, I tried to record it as a deposit and went back to the customer transaction list to see if the credit is there, it does not show under the customer transactions. It also does not affect the customer's balance, if the deposit was say 100, then the balance in the customer field should show -100. But it does not. What am I doing wrong?
Just wanted to say 'Thanks!' for putting together this description - lots of content about specific situations to use Credit Memo, but this was the clearest way to understand what and how it's doing. I feel like I got a new tool to use in my self-managed accounting adventures! :0)
Thank you justin, I hope you will click "like" and subscribe
Thanks a lot sir❤❤.Thankyou for making these videos 🙏🏻
Oh wow thank you for the kind words and I'm very glad it helped you and I hope you will always click like after watching each one to help support the free channel for everyone and please subscribe
Mark
Thank you for this video. I have a client that uses distributers to sell their product. When they are paid they often have deductions for advertising costs paid by the distributer, or returned out-of-date products. Since advertising was not on the original invoice, what do I do about the category on the Credit Memo, or should I go back and add advertising to the Invoice with a negative amount? Thank you,
The credit memo can only reverse all or part of a future or past invoice. No invoice, no credit memo. Only what's relevant to the invoice should be on teh credit memo. You need to record the advertising separatly.
-Mark
I created credit memos often; however they are not always used right away even if they have an invoice with an open balance. I know the equivalent JE that happens when creating the credit memo, but what is the JE equivalent when you actually apply the credit to the invoice??
Actually a journal entry is not necessary in any case
It will be clear to you as you. Click in the top right corner of the video to get the link to the full playlist
Once you watch the accounts, receivable playlist in proper order. You will see how everything fits in with credit memos and how you can apply them later to future invoices if you want to
Bark
You are the best teacher on QB so far I have seen. Thank you so much for all your effort. I was doing this class where I faced a problem. My credit memo does not show up in Open invoices report instead it is deducting $900 from the $3000 invoices of Candy and showing it as $2100. Could you please tell how to fix that?
Yes I can help you and thank you for asking
In the account settings window or company settings window from the car wheel, you can adjust how the credit memos are automatically applied to the bills and invoices from customers and vendors
Sometimes they automatically apply it to the oldest one or sometimes they don't apply it at all
But that's a choice you can make in the proper account settings window if you open it up and browse through it to see the options
The reason this video looks different is because they make the default setting for how the payments are applied to inquiries, to be different for each person's account. So some peoples account will behave as this video and other people's account will behave with the different default settings
So see if that works and please confirm that you are OK and I'm here if you still need help
Mark
HI MAY I ASK YOU IF THE CREDIT MEMO IS THE SAME WITH CREDIT NOTE. THANK YOU!!!!
Thanks for the video, but I have a question, I hope you can help me, I created a Credit Memo and already applied it to a certain invoice, but when I open the Open Invoices report the CM still appear. Hope you can help me.
Thank you but for now, the only advice I have, is to first check that it's really the correct memo and invocie. Also, you may need to try to refresh your browser or clean the cookies; maybe it's rememering the prior report. You can check tyhis in the "receive payments" window to see if the correct memo was matched to the correct invoice. Please let me know if ou still don't see it, we will think of somehting else.
-Mark
@@worldwidequickbooks thank you
How to record a charge back on QBO. A customer charged back an amount, and the bank withdrew the funds and gave to back to the customer. The QB record shows that the bill was paid. A credit memo seems to give money back to the customer, however, the customer already has received her money back. Do I simply write up a refund receipt?
In that case I recommend recording a refund receipt just like you said
That will make your bank records and your income correct after the money was given back to the customer after a sale that never panned out
If you want to see the video on refund received, double click on the top right corner of this video to get the full advanced playlist and the videos right before this one shows all about refund receipt
Let me know if you need anything else and I hope you will click like after watching each one and please subscribe
Mark
Hello how does affect cost of sales when a credit memo is given for returning the total invoice ?
Yes, cost of sales goes down when you return or give a credit exactly the opposite of how cost of sales goes up when you make the original invoice.
Make sure you have the link in the top right corner to the entire playlist so that you can see the whole contact and that will help you.
Mark
Thank you for the videos you are making. I really appreciate it. I have a question how do you record a cc declined fee? Lets say a customer owes you $300 and they pay through credit card mx merchant. The amount is declined. How do you record the declined fee of $25 in qbo? Thanks
That would be the same procedure as a bounce to check and when I get back in front of the computer I'll send you the link to my bank playlist that shows what to do with a bounced check it's the same idea
@@worldwidequickbooks thanks
Great video. BUT... How do you get that Credit Memo to go to a Discounts G/L account instead of a Sales G/L account? Because you chose "Video Income" as your Product/Service, presumably the original Invoice is going to a Sales account on the P&L. And the same goes for your Credit Memo. But what if you want the Credit Memo to go to a "Discount" account?
If you want the credit memo to decrease a different account than the account on the original invoice that the credit memo will be applied to, then you have to put a different item on the credit memo and connect that item to the discount account when you set up that item.
So put on to the credit memo the item that's connected to the discount account and then after you save the credit memo you can then apply it to the correct invoice
@@worldwidequickbooks Thanks for responding! Yes, I thought of that, but if the item you are crediting on the original invoice is inventory, then your inventory count would be off, correct? Btw... That's the real reason I asked the question. Wanted to know how to apply a credit memo to an inventory item invoiced, but show that credit memo as a discount/return while keeping inventory count the correct.
@@andybelair9367Your inventory will not be off. If I understood you correctly, you are giving credit so that they PAY less without returning any inventory. Therefore what I suggested is exactly that result. Applying the credit will not effect inventory, Making a credit memo where the item goes to a disocunt account will not change the quantity. Try it and you will see.
Mark
AFTER this process will you issue Betty a physical check with the amount of the refund? Because what you did was only execute the process in quickbooks.
Yes,
Click in the top-right corner of the video to get the link to the full pliylest. Each video is only a few minuets but if you watch it in proper order, you will see how it turns out.
-Mark
We have a customer who paid their invoice last year, there was an issue with some gear so we had to deal with the vendor to get reimbursed in order to give the customer a credit. Due to vendor issues and the Covid debacle, we did not receive the refund from the vendor until this year. The customer is good with a credit on their account, but probably won't order anything for a while due to the Covid debacle. Short story long, can I create a credit memo for the customer for when they do order in the future, and at that time, use the proper method to reduce their bill? Thanks!
Thank you Dominique,
People shoule know that your records and your relationship with customers has absolutely nothing to do with your relationship with vendors. Just record credits for the customer in the way you described;; then, if the vendor does not honor the credit, it should be written off as a loss.
@@worldwidequickbooks Thank you. I will create the credit and wait on the customer to order sometime in the future. They are a youth camp and it will be some time before they order. However, please don't misunderstand, the vendor did honor the credit/refund, it was literally delayed by the Covid debacle. We did not hold back any credit due to the customer due to the delay by the vendor. As you said, the relationship with the customer has little to do with the vendor, unless the vendor is delayed due to unforeseen circumstances and this causes delay with actual product delivery to the customer. Unfortunately this has been the norm for a few months as of late. But our customer received a credit right away, regardless of the vendors delay in reimbursement. Thanks for the instruction.
One other request, in this video you mention what statements would look like after doing the credit memo/zero payment procedure. Would you be so kind as to direct me to that video? Before we submit a new invoice to the customer, it would be nice to see what it should look like to ensure it is correct. Thanks so much.
My client returned the item they originally purchased and took cheaper item instead. I created credit memo and applied to a new invoice. But I have extra money to refund. I recorded as a cheque but client account was not deducted and showing I still owe money to them. How to deal with such refund? I can't find any videos about it.
Thank you arena
The video that shows how to give a refund after a credit memo or a remaining credit is available, is right there in the same playlist
You can find the link to the whole playlist directly under the 1st paragraph of the description field or you could find the link to the whole playlist that this video is a part of, by clicking in the top right of the video
Once you get to the playlist you will see, then very close to this video here, is a video that shows how to give a refund to a customer for an existing credit.
The remainder of the credit memo after the invoice for the cheaper product, if your product, is the existing credit that you would write the refund check for
Please confirm you found the video if not I'll send you a link in your email to the specific credit memo refund video that you need
Don't forget to click like after watching each video and please subscribe
Mark
Hi I created a credit memo but somehow it showed closed instead of unappllied.
Please advise!
You may have accidentally aplied it whne you created it. You can delete it abd re-enter carefully to be sure that you do not apply. Look closely at the video and see the differences when you re-enter it.
-Mark
I hope you will subscribe and clikc "like"
How do you clear a system generated credit memo due to payment receipt error? long story... but end result is I have no invoices to apply to these credit memos and need to correctly remove them; big problem.
If you owe the credit back to the customer, then do what this playlist shows. You can get ideas how to do it by clicking in the top-right corner of the video to see the advanced playlist that this video is a part of. Look at the videos before and after this one. If you do NOT owe the credit back to the customer, then you need to make an adjusting entry, possible to owner''s equity, in order to remove it and "write it off". Tell your tax professional and ask her/him if you should just write it off to equity as a mistake. I can't comment for sure if I don't really know the full context.
-Mark
-Mark
How do I write a check to refund a customer for an open credit memo in QuickBooks Online and record it so the credit memos balance goes to zero?
Thank you for asking.
This video shows how to refund a paid invoice using a credit memo. It's the proceedure you need
ruclips.net/video/BO1XKrfE4DI/видео.html
Please confirm and I will be here for folow-up questions.
-Mark