UNUSED CREDIT - how to remove

Discussion in 'Quickbooks' started by Wayne, May 16, 2006.

  1. Wayne

    Wayne Guest

    I have one client in my QB that show they have an unused credit that I want
    to get rid of. Is there an easy way to do this?

    Thanks
     
    Wayne, May 16, 2006
    #1
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  2. Wayne

    TObject Guest

    "Wayne" <> wrote in message news:...
    > I have one client in my QB that show they have an unused credit that I want
    > to get rid of. Is there an easy way to do this?


    Sure, issue an invoice for the amount and apply the credit against the invoice.

    If you just want to cleanup the AR but keep the credit for the customer,
    then issue a credit memo.
     
    TObject, May 16, 2006
    #2
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  3. Wayne

    Wayne Guest

    and how do I apply the credit ?


    "TObject" <> wrote in message
    news:9d85e$446a5363$4069520e$...
    >
    > "Wayne" <> wrote in message
    > news:...
    >> I have one client in my QB that show they have an unused credit that I
    >> want
    >> to get rid of. Is there an easy way to do this?

    >
    > Sure, issue an invoice for the amount and apply the credit against the
    > invoice.
    >
    > If you just want to cleanup the AR but keep the credit for the customer,
    > then issue a credit memo.
    >
    >
     
    Wayne, May 16, 2006
    #3
  4. Wayne

    HeyBub Guest

    Wayne wrote:
    > I have one client in my QB that show they have an unused credit that
    > I want to get rid of. Is there an easy way to do this?


    Get rid of?

    Refund?
    Credit the credit to "Misc Revenue"?
     
    HeyBub, May 17, 2006
    #4
  5. Wayne

    Lisa C Guest

    "Wayne" <> wrote in message
    news:yDsag.74282$...
    > and how do I apply the credit ?
    >
    >
    > "TObject" <> wrote in message
    > news:9d85e$446a5363$4069520e$...
    >>
    >> "Wayne" <> wrote in message
    >> news:...
    >>> I have one client in my QB that show they have an unused credit that I
    >>> want
    >>> to get rid of. Is there an easy way to do this?

    >>
    >> Sure, issue an invoice for the amount and apply the credit against the
    >> invoice.
    >>
    >> If you just want to cleanup the AR but keep the credit for the customer,
    >> then issue a credit memo.

    >
    >

    What, specifically, do you want to do?

    The "unused credit" for your customer reflects in more than one account.
    Primarily, it reflects in your accounts recievable (as a negative amount,
    money you will not recieve), in the customer account (as a positive amount,
    money they paid or services or goods they returned or did not receive).
    Additionally, the fact that the customer even *has* a credit, can indicate
    that your sales or other income account(s) need to be adjusted as well.

    So, the question is, why do they have a credit, and what do you want to do
    about it?

    If the credit is the result of a service that has been refunded, then you
    can simply issue a refund check to the customer. Be sure to put the
    customer:job name in the detail line at the bottom of the account, and use
    the income account or service item that corresponds to the original invoice.
    You may wish to add the invoice number in the memo fields. As I do not sell
    inventory goods I am unsure of the process for item returns, but I am sure
    you can find it inside the QuickBooks help within the program.

    There are situations that arise where there are customer credits without
    corresponding returns. For example, I have customers who like to round their
    amounts due. If my bill is say, $151.85 they will pay me $152. For the
    regulars who do this, I leave the credit on the account to be applied to the
    next invoice. But, if additional invoices have not been generated over a
    prolonged period, and it is nearing year-end, I assign any such small
    credits to an income account set aside for customer over/under payments.
    This can be done either with a journal entry, by entering the amount as a
    charge to the customer register, or by creating an invoice that contains a
    non-taxable item created for this purpose.

    The procedure to apply the credit is the same for all cases. Open the
    'Recieve Payments' window. You should see one or more lines in the invoice
    portion, corresponding to the issued check, journal entry, or customer
    register adjustment. Hilight the item and use the option buttons at the
    bottom of the screen to apply the credit to the item.
     
    Lisa C, May 17, 2006
    #5
  6. Wayne

    Paul Danaher Guest

    Lisa C wrote:
    ....
    > The "unused credit" for your customer reflects in more than one
    > account. Primarily, it reflects in your accounts recievable (as a
    > negative amount, money you will not recieve), in the customer account
    > (as a positive amount, money they paid or services or goods they
    > returned or did not receive). Additionally, the fact that the
    > customer even *has* a credit, can indicate that your sales or other
    > income account(s) need to be adjusted as well.


    This explanation puzzles me - surely a credit reflects a payment you *have*
    received, not "money you will not receive"?
     
    Paul Danaher, May 17, 2006
    #6
  7. Wayne

    Lisa C Guest

    "Paul Danaher" <> wrote in message
    news:IxFag.21786$ZW3.6578@dukeread04...
    > Lisa C wrote:
    > ...
    >> The "unused credit" for your customer reflects in more than one
    >> account. Primarily, it reflects in your accounts recievable (as a
    >> negative amount, money you will not recieve), in the customer account
    >> (as a positive amount, money they paid or services or goods they
    >> returned or did not receive). Additionally, the fact that the
    >> customer even *has* a credit, can indicate that your sales or other
    >> income account(s) need to be adjusted as well.

    >
    > This explanation puzzles me - surely a credit reflects a payment you
    > *have* received, not "money you will not receive"?


    Good thing I am not an accountant. I seem to have serious problems
    communicating ;-)

    You are correct, a customer credit generally means the customer already paid
    for the item or service. Of course, it can also reflect a discount or refund
    on an item or service. In either case, what I was trying to convey is that
    the credit affects accounts recievable in such a way that if you look at the
    A/R register, the credit reduces the balance of the A/R. So, if a customer
    has paid a $30 deposit, and there exists a $100 invoice, the A/R balance
    will be $70.

    How the credit evolved may determine the method used to 'get rid' of it. If
    there already is an invoice or journal entry or customer register entry that
    details the credit, then the OP simply has to apply the credit to the income
    event in the 'Recieve Payements' window.
     
    Lisa C, May 17, 2006
    #7
  8. Wayne

    Wayne Guest

    I am not following you here ,,,, please help ... I want to do option 2 ..
    create an invoice and apply the credit .. but I only have the option
    of receive payment then apply to this new invoice leaving the credit
    still in place ! How do I dig out the credit that is sitting there?


    > There are situations that arise where there are customer credits without
    > corresponding returns. For example, I have customers who like to round
    > their amounts due. If my bill is say, $151.85 they will pay me $152. For
    > the regulars who do this, I leave the credit on the account to be applied
    > to the next invoice. But, if additional invoices have not been generated
    > over a prolonged period, and it is nearing year-end, I assign any such
    > small credits to an income account set aside for customer over/under
    > payments. This can be done either with a journal entry, by entering the
    > amount as a charge to the customer register, or by creating an invoice
    > that contains a non-taxable item created for this purpose.
    >
    > The procedure to apply the credit is the same for all cases. Open the
    > 'Recieve Payments' window. You should see one or more lines in the invoice
    > portion, corresponding to the issued check, journal entry, or customer
    > register adjustment. Hilight the item and use the option buttons at the
    > bottom of the screen to apply the credit to the item.
    >
     
    Wayne, May 17, 2006
    #8
  9. Wayne

    Wayne Guest

    I am not following you here ,,,, please help ... I want to do option 2 ..
    create an invoice and apply the credit .. but I only have the option
    of receive payment then apply to this new invoice leaving the credit
    still in place ! How do I dig out the credit that is sitting there?

    "Lisa C" <> wrote in message
    news:8OEag.5$...
    > "Wayne" <> wrote in message
    > news:yDsag.74282$...
    >> and how do I apply the credit ?
    >>
    >>
    >> "TObject" <> wrote in message
    >> news:9d85e$446a5363$4069520e$...
    >>>
    >>> "Wayne" <> wrote in message
    >>> news:...
    >>>> I have one client in my QB that show they have an unused credit that I
    >>>> want
    >>>> to get rid of. Is there an easy way to do this?
    >>>
    >>> Sure, issue an invoice for the amount and apply the credit against the
    >>> invoice.
    >>>
    >>> If you just want to cleanup the AR but keep the credit for the customer,
    >>> then issue a credit memo.

    >>
    >>

    > What, specifically, do you want to do?
    >
    > The "unused credit" for your customer reflects in more than one account.
    > Primarily, it reflects in your accounts recievable (as a negative amount,
    > money you will not recieve), in the customer account (as a positive
    > amount, money they paid or services or goods they returned or did not
    > receive). Additionally, the fact that the customer even *has* a credit,
    > can indicate that your sales or other income account(s) need to be
    > adjusted as well.
    >
    > So, the question is, why do they have a credit, and what do you want to do
    > about it?
    >
    > If the credit is the result of a service that has been refunded, then you
    > can simply issue a refund check to the customer. Be sure to put the
    > customer:job name in the detail line at the bottom of the account, and use
    > the income account or service item that corresponds to the original
    > invoice. You may wish to add the invoice number in the memo fields. As I
    > do not sell inventory goods I am unsure of the process for item returns,
    > but I am sure you can find it inside the QuickBooks help within the
    > program.
    >
    > There are situations that arise where there are customer credits without
    > corresponding returns. For example, I have customers who like to round
    > their amounts due. If my bill is say, $151.85 they will pay me $152. For
    > the regulars who do this, I leave the credit on the account to be applied
    > to the next invoice. But, if additional invoices have not been generated
    > over a prolonged period, and it is nearing year-end, I assign any such
    > small credits to an income account set aside for customer over/under
    > payments. This can be done either with a journal entry, by entering the
    > amount as a charge to the customer register, or by creating an invoice
    > that contains a non-taxable item created for this purpose.
    >
    > The procedure to apply the credit is the same for all cases. Open the
    > 'Recieve Payments' window. You should see one or more lines in the invoice
    > portion, corresponding to the issued check, journal entry, or customer
    > register adjustment. Hilight the item and use the option buttons at the
    > bottom of the screen to apply the credit to the item.
    >
     
    Wayne, May 17, 2006
    #9
  10. Wayne

    David Smith Guest

    "Wayne" <> wrote in message
    news:...
    >I am not following you here ,,,, please help ... I want to do option 2 ..
    > create an invoice and apply the credit .. but I only have the option
    > of receive payment then apply to this new invoice leaving the credit
    > still in place ! How do I dig out the credit that is sitting there?


    Credits do not show up in the receive payments window. Select the invoice
    you want to apply the credit to and then click the "set credits" button at
    the bottom
     
    David Smith, May 17, 2006
    #10
  11. Wayne

    Jeff Guest

    Go to receive Payments and select Discounts & Credits (after you create the
    invoice). Your new invoice will show up in that screen and when you press
    the above button, your credit will show and allow you to apply it that
    invoice.
    jeff
    "Wayne" <> wrote in message
    news:...
    >I am not following you here ,,,, please help ... I want to do option 2 ..
    > create an invoice and apply the credit .. but I only have the option
    > of receive payment then apply to this new invoice leaving the credit
    > still in place ! How do I dig out the credit that is sitting there?
    >
    > "Lisa C" <> wrote in message
    > news:8OEag.5$...
    >> "Wayne" <> wrote in message
    >> news:yDsag.74282$...
    >>> and how do I apply the credit ?
    >>>
    >>>
    >>> "TObject" <> wrote in message
    >>> news:9d85e$446a5363$4069520e$...
    >>>>
    >>>> "Wayne" <> wrote in message
    >>>> news:...
    >>>>> I have one client in my QB that show they have an unused credit that I
    >>>>> want
    >>>>> to get rid of. Is there an easy way to do this?
    >>>>
    >>>> Sure, issue an invoice for the amount and apply the credit against the
    >>>> invoice.
    >>>>
    >>>> If you just want to cleanup the AR but keep the credit for the
    >>>> customer,
    >>>> then issue a credit memo.
    >>>
    >>>

    >> What, specifically, do you want to do?
    >>
    >> The "unused credit" for your customer reflects in more than one account.
    >> Primarily, it reflects in your accounts recievable (as a negative amount,
    >> money you will not recieve), in the customer account (as a positive
    >> amount, money they paid or services or goods they returned or did not
    >> receive). Additionally, the fact that the customer even *has* a credit,
    >> can indicate that your sales or other income account(s) need to be
    >> adjusted as well.
    >>
    >> So, the question is, why do they have a credit, and what do you want to
    >> do about it?
    >>
    >> If the credit is the result of a service that has been refunded, then you
    >> can simply issue a refund check to the customer. Be sure to put the
    >> customer:job name in the detail line at the bottom of the account, and
    >> use the income account or service item that corresponds to the original
    >> invoice. You may wish to add the invoice number in the memo fields. As I
    >> do not sell inventory goods I am unsure of the process for item returns,
    >> but I am sure you can find it inside the QuickBooks help within the
    >> program.
    >>
    >> There are situations that arise where there are customer credits without
    >> corresponding returns. For example, I have customers who like to round
    >> their amounts due. If my bill is say, $151.85 they will pay me $152. For
    >> the regulars who do this, I leave the credit on the account to be applied
    >> to the next invoice. But, if additional invoices have not been generated
    >> over a prolonged period, and it is nearing year-end, I assign any such
    >> small credits to an income account set aside for customer over/under
    >> payments. This can be done either with a journal entry, by entering the
    >> amount as a charge to the customer register, or by creating an invoice
    >> that contains a non-taxable item created for this purpose.
    >>
    >> The procedure to apply the credit is the same for all cases. Open the
    >> 'Recieve Payments' window. You should see one or more lines in the
    >> invoice portion, corresponding to the issued check, journal entry, or
    >> customer register adjustment. Hilight the item and use the option buttons
    >> at the bottom of the screen to apply the credit to the item.
    >>

    >
    >
     
    Jeff, May 23, 2006
    #11
  12. Wayne

    gladiator Guest

    responding to
    http://www.beansmart.com/quickbooks/unused-credit-how-to-remove-18554-.htm ,
    gladiator wrote:
    > xeroid wrote:
    >
    > I have one client in my QB that show they have an unused credit that I
    > want
    > to get rid of. Is there an easy way to do this?
    >



    We have similar problem. We sell retail and our credits are removed from any
    payments from the stores. We are a manufacturer and stores may take a credit
    even though we do not distribute to. They receive our product through a sub
    vendor. Now we have credits to stores that we will never sell to. This may be
    a group of 25 store and they bulk their payments. Because we have no invoices
    the credit will not show up in the check apply screen for that store. QB wont
    allow me to apply this store credit to the the paid check amount. We have
    ghost credits that we cant apply and check payments that wont clear invoices.
     
    gladiator, Sep 6, 2013
    #12
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