QuickBooks Credit Memos: Apply, Edit, and Delete Explained

 Welcome to our QuickBooks tutorial! Today, we’ll walk you through how to apply, edit, and delete credit memos in QuickBooks Online. Whether you’re new to QuickBooks or just need a refresher, this guide will help you manage customer credits efficiently.

Credit memos are essential for adjusting customer balances, whether due to returns, overpayments, or billing errors. In this video, we’ll cover:

1. How to apply a credit memo to an invoice.

2. How to edit or unapply a credit memo.

3. How to delete a credit memo when necessary.
   

Let’s start by applying a credit memo to an open invoice. Follow these steps:

1. Click the + New button.

2. Under Customers, select Receive Payment.

3. From the Customer dropdown, choose the customer.

4. In the Outstanding Transactions section, select the open invoice.

5. In the Credits section, check the credit memo you want to apply.

6. Enter the amount of the credit you wish to apply in the Payment column.

7. Leave the Payment method, Reference No., Deposit to, and Amount received fields blank.

8. Fill out the rest of the form, including the Payment date.

9. Ensure the total is correct after applying the credit.

10. Click Save and Close.
    

That’s it! You’ve successfully applied a credit memo to an invoice.

Need to edit or unapply a credit memo? Here’s how:

1. Navigate to the Receive Payment transaction where the credit was applied.

2. Uncheck the credit memo you no longer want to apply.

3. If you need to adjust the amount, modify the Payment column accordingly.

4. To completely remove the payment, click More, then select Delete.
   

Remember, deleting a payment removes all applied credits, so use this option with caution.

To delete a credit memo:

1. Go to the Sales menu and select Customers.

2. Find and select the customer associated with the credit memo.

3. Locate the credit memo in the list of transactions.

4. Click the More button at the bottom and choose Delete.
   

Deleting a credit memo is permanent and cannot be undone, so ensure it’s the right action before proceeding.

Managing credit memos in QuickBooks Online is straightforward once you know the steps. By applying, editing, or deleting credit memos correctly, you can maintain accurate customer balances and financial records.

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