Orlando, Tampa,Miami, Jacksonville Indian Community - MyFloridaIndian.com
| | |
 


 

Issuing Credit Memos and Refunds in QuickBooks

Money
Contributed by : Mukesh Makker
Add To My Favorite
Share With Your Friends



QuickBooks is very good at helping you get paid by your customers. It comes equipped with customizable invoice templates for billing customers and sales receipts for recording instant sales. It supports online payments, so you can accept debit or credit cards and electronic checks. It simplifies the process of recording payments and it offers reports that let you keep track of it all.

There are times, though, when you have to issue a payment to a customer. QuickBooks provides forms that allow that transfer of funds: credit memos and refunds. Do you know when and how they should be used? Here are the basics:

CREDIT MEMOS
A credit memo is just what it sounds like. A customer returns an item for which they've already paid, and you have to credit him or her for its cost. This is the more complicated of the two and requires more bookkeeping since you're tracking the sale, its payment, and the returned item. You can deal with the amount of the credit by:

Retaining the funds in the customer account.
Issuing a refund.
Applying it to the next open invoice.


To create a credit memo, click Refunds & Credits on QuickBooks' home page or open the Customers menu and select Create Credit Memos/Refunds. The Credit Memo window opens. Select the correct Customer:Job. In the line item section of the form, choose the merchandise returned in the Item column and enter a quantity. Repeat the process if more than one item was returned, then click Save & Close. The Available Credit window, pictured above, will open. Click the button in front of the option you want.

Select the first option if that's what you want and click OK. The window will close, and the customer will have had that credit amount applied to his or her own account. You can see this in the Customer Center if you click on Customers in the navigation toolbar (or Customers | Customer Center). You can then either click on the Customers & Jobs tab and scroll down until you can highlight your customer's record or click on Transactions | Credit Memos.

Click on Give a Refund to open the Issue a Refund window. Everything should be filled in here except for the payment method. If you select Cash from the Issue this refund via drop-down list and then pick the correct account from the list that opens, the refund amount will be subtracted from the account. Select Check and then the Account, and check the box in front of To be printed. That refund will be in the list the next time you open the File menu, then Print Forms | Checks. Choose a credit card and check the box in front of Process credit card refund when saving box to issue a credit card refund automatically.


About Author
Mr. Maker is a certified Public Accountant and serving the South Asian community since 1993.

Website: https://taxmaker.com/archive.php?archive=072019#8

 

Disclaimer: Please use this channel at your own discretion. These articles are contributed by our users. We are not responsible or liable for any problems related to the utilization of information of these articles.

 

View All Contributions

My Business:
Accounting and Tax Professionals, Inc
Bellevue

Post an Article
Notify Me of New Articles

Become A Featured Contributor
Add Your Blog | Add Recipe | Add Article

More Article by Mukesh Makker

Nikita Rawal gets a birthday surprise by her fans; watch her reaction
International Cricketing Legends to play for Friendship Cup UAE in Sharjah
IMPORTANT TAX CHANGES FOR INDIVIDUALS AND BUSINESSES - Jan 2020
View All Articles

Featured Contributors


Dilip Saraf

Praveen Nair

Ananya Kiran
Ananya Kiran

Aayushi Manish

Vasudha Sharma

Darshan Goswami
Darshan Goswami

Vivek Wadhwa

Tahmina Watson

Christine Dunbar
Christine Dunbar

Latest Articles

Akshay Kumar Selfiee "Main Khiladi Tu Anari" Song Teaser Out! by Staff
Ebina Entertainment announces new movie "Operation AMG" That Will Bring Chills Down Your Spine by Staff
Film Actress Suraiya Parvin is Very Excited about Her Film 'Jungle Mahal' by Staff
Avak Films in association with Randeep Hooda Films & Jelly Bean Entertainment presents Laal Rang 2 by Staff
Actress Aastha Rawal visits historic Taj Mahal Agra by Staff
View All Articles