This ensures that records remain accurate since invoices cannot be deleted or edited after they're sent to the customer. Order Cancellations: One of the primary reasons for using credit memos is to cancel part or all of a previous order.There are several reasons why businesses might need to use credit memos: In the context of QuickBooks, creating a credit memo is straightforward, and it serves as a useful tool to reduce the amount a customer owes you, either now or in the future. Think of it as an in-store credit you don't get your cash back, but you can use the credit towards future purchases. It's essentially a "credit" that can be applied to an open or future invoice. Depending on your need, you can save, print, or send this transaction.A credit memo, also known as a credit memorandum, can be added to a customer's account at any given time.The memo text doesn't appear on this credit memo, but it does appear on this customer's next statement. This text appears only on the credit memo, but not on the customer's next statement. (Optional) In the Print message to customer field, enter a message for the customer.(Optional) In the Shipping field, add any shipping charges you are crediting, if applicable.(If you don't see a discount field, Discounts are turned off for your company.)Ĭlick the sales tax drop-down arrow and select a sales tax rate. Then enter a number in the field to the right. To apply a discount, click the Discount drop-down arrow and select either Discount Percent or Discount Value.If you do not see Class, class tracking is turned off. If you don't see the Service Date column, it is turned off for your company. Use the Service Date to indicate when a service was performed or a product was sold. To turn it on, click Sales tax in the left navigation menu and then click Set up Sales Tax. If you don't see a sales tax column, sales tax is turned off for your company. If you change the rate for a product or service, the change doesn't affect the rate for future uses of it.Įnter an Amount if you didn't fill in the Qty and Rate. You can turn it on in Gear icon > Company Settings. If you don't see Qty and Rate, they are turned off for your company. Together, Qty and Rate calculate the amount for a line. The Description text appears on this printed or sent credit memo, but it doesn't appear on the customer's next statement unless you set the preference to use detailed statements.
If you don't see a Product/Service column, using products and services is turned off. Enter each charge included in this credit memo.If you use custom fields, enter the appropriate information in the fields.In this case, QuickBooks assigns the credit memo a number after you save it. If you use automatic numbers, you don't see the credit memo number. (Optional) If you use custom transaction numbers, edit the credit memo number, if necessary.If necessary, change the Credit Memo Date to the date you are issuing the credit.Choose a customer to credit, or click Add New to add a new customer.If you are refunding the customer at the same time (by writing a cheque, refunding a credit card, or giving cash back), you should enter a refund instead of creating a credit memo. Learn how to apply the credit memo to an invoice.
However, QuickBooks does not apply the credit memo to a particular invoice. Or if you prefer to include the credit as a line on the customer's next invoice, enter a delayed credit.Ī credit memo affects the customer's balance. You can give a credit memo to immediately post the transaction.