Issuing credit not related to return

Hey guys,

I have become aware that there is no defined process for issuing a credit.

To offer an example, a customer is overcharged for an item
by $200. Our appropriate action would be to issue a credit in the amount of $200, and ask the customer to short pay the invoice.

The modification of an invoice is not an acceptable solution, at least not in the US.

This is only one example of when issuing credit is required. Daily operation of business requires the issuance of credit on a regular basis.

Is anyone aware of a practical way to perform this action? Thanks!


@cpurbaugh you can create a return voucher or pass a Journal Entry

@rmehta, We have tried this already, but the problem is tracking a customer’s credits that they do not want to apply immediately.

This is how our accounting dept. uses them now: Learn QuickBooks Training - Create a Credit Memo and Apply to an Invoice - YouTube

There is the ability in QB to retain as available credit, and then come back to that credit later and apply it as a payment to a later invoice. I see no easy way to do this at the moment.

Add a Journal Entry