UNUSED CREDIT - how to remove


W

Wayne

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
 
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T

TObject

Wayne said:
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.
 
W

Wayne

and how do I apply the credit ?


TObject said:
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.
 
H

HeyBub

Wayne said:
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"?
 
L

Lisa C

Wayne said:
and how do I apply the credit ?
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.
 
P

Paul Danaher

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"?
 
L

Lisa C

Paul Danaher said:
Lisa C wrote:
...

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.
 
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W

Wayne

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?
 
W

Wayne

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?
 
D

David Smith

Wayne said:
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
 
J

Jeff

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
 
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G

gladiator

responding to
http://www.beansmart.com/quickbooks/unused-credit-how-to-remove-18554-.htm ,
gladiator said:
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.
 

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