Do you know what is a delayed credit in QuickBooks? If not, you need to worry. Here, we will explain the meaning and the importance of delayed credit in QuickBooks.
QuickBooks Delayed Credit is quite similar to a QuickBooks Credit Note. If you are unsure about what is a Credit Note or Delayed Credit in QuickBooks, this article will enlighten you on the difference between these two.
Let’s understand what is a delayed credit in QuickBooks and how to create, apply them to customer transactions, and delete it if required in the future. Besides that, we will learn about credit notes and how you can create and apply them in QuickBooks Online.
The guide covers the difference between delayed credit and credit notes with the appropriate situation of using them.
- Learn about Delayed Credit in QuickBooks Online
- How to Create a Delayed Credit in QuickBooks Online?
- How to Apply for a Delayed Credit in QuickBooks Online?
- How to Delete a Delayed Credit in QuickBooks Online?
- What is a Credit Note in QuickBooks?
Learn about Delayed Credit in QuickBooks Online
If you are thinking about what is Delayed Credit in QuickBooks Online then let us tell you that it helps you to keep track of credit that you wish to apply (in the future) to the account of customers, learn how to add account in QuickBooks online. Although it would not affect their account or balance unless you apply it to the future invoice.
Primarily, a Delayed Credit is used when a customer contacts you to notify you that they would be returning a few goods they are dissatisfied with. In such circumstances, the first thing you make sure that the customer returns the goods first before you apply the credit to the account of your customer.
How to Create a Delayed Credit in QuickBooks Online?
Now that you know the meaning of delayed credit, you can create one for your customers. To create a delayed credit in QuickBooks Online, you can follow the steps one by one mentioned below.
- First of all, click on the (+) icon located on the top right of the screen.
- Next to this, you need to click on the Delayed Credit option.
- Doing so, a delayed credit screen will appear as a pop-up on the screen.
- At this point, you are required to complete all the necessary fields such as customer name, products/service items, date, amounts, and quantities.
- Once you are done, you can click on Save and Close.
After following these steps, the delayed credit would be created. Now whenever your customer returns the goods, you can apply the delayed credit to a specific invoice.
How to Apply for a Delayed Credit in QuickBooks Online?
If you reach the point where your customer returns the goods, you can apply the delayed credit you have just created. To apply a delayed credit to an invoice, you can look for the steps stated below.
- As the first step, you can click on the Plus icon located on the top right of your screen.
- Thereafter, you can click on the Invoice. This will show you an invoice screen pop-up.
- Now, you can select the customer using the drop-down menu.
- At this point, you can enter all the necessary fields.
- On the right, you will see a column with available delayed credits. You can pick the one that you wish to apply for and click on the Add option. In case, you do not see credits then you can click on the arrow located next to the invoice balance and add delayed credit to the invoice.
- Thereafter, you can click on the Save and Send button in order to send the invoice to your customer.
This is the easiest process to apply the delayed credit to the invoice. All you have to navigate through the settings, pick a customer, and add the delayed credit for the customer.
How to Delete a Delayed Credit in QuickBooks Online?
In case you wish to delete the delayed credit in QuickBooks in the future, this can be done in a few simple steps. To delete the delayed credit from your account, you can follow the steps mentioned below.
- Firstly, open the Delayed Credit form that you wish to delete.
- You can also navigate the recent Delayed Credit to open. Then, you can select the little clock sign located on the top left (next to the delayed credit). The clock sign is to let you open delayed credit.
- Now at the bottom, you will see the More option, click on it to select the Delete option to get the job done.
This is all about delayed credit. You can easily create the delayed credit, send it to the customer, and remove the delayed credit if required in the future.
What is a Credit Note in QuickBooks?
As mentioned earlier, a few QuickBooks users might get confused between Delayed Credit and Credit Note. So now we will discuss credit notes and how to create and apply them for the customers.
Credit Note is a receipt that is given to the customer against the purchase so that your customer does not need to pay as much. In other words, you create a credit note in order to keep track unless you have paid it and also to let your customer know that the amount they owe you has now decreased.
Must Read: How to Enter and Pay Bills in QuickBooks
By creating a Create Note, you can record it on your QuickBooks system and apply the value of an account of the customer. Then, you can repay the money or offset an existing customer balance. It is necessary to send a credit memo to the customer. By doing so, you can ensure that the included amount in your reports and balance totals.
When Do You Need a Credit Note?
Now, let’s know when you can use a credit note. Well, there can be different scenarios when you need a credit note. Below are the following reasons:
- A customer cancels an order or returns goods.
- Customers are unhappy and want their money back.
- When a customer pays in advance, however, the final value of the services came less than the amount in the invoice.
- The invoice is issued for the wrong amount.
- Taxes or the discount code are not applied correctly to the invoice.
- Or, you want to abandon the sale due to some reason.
Now that you know when you should use the credit notes so you should also know how to create a credit note for customers. Continue reading to understand better.
How to Create a Credit Note?
Making a credit note is easy in QuickBooks Online. Those who want to create a Create Note can go through the steps mentioned below.
- Firstly, you can click on the Plus sign located on the top right of the screen.
- Now, you can select the Credit Note. This will show you a pop-up of a new credit note screen.
- Here, you are required to fill in the necessary details such as email, date, customer, reference, value, product description, and others.
- After this, you can save the details by clicking on the Save and Close.
- Once done, you can email this to your customer.
Note: You need to make sure that the automatically apply credits option is turned off. If it is not then you can click on the Gear icon, go to the Accounts and Settings, click Advanced, and then Automation button to enable or disable the automation.
How to Apply a Credit Note?
After creating the credit note, the next step is to apply it in your QuickBooks Online. To do so, you can pursue the following steps instructed below.
- To begin, go to the Plus icon located on the top right of the screen.
- Now, you can click on Receive payment and then a pop-up for receive payment appears on your screen.
- After that, you can enter the required details which are as follow
- Date: Change if required
- Customer: Select the customer using the drop-down menu
- Memo (optional)
- Amount: Payment Method and Ref# (optional)
- Deposit to (optional)
- Now you can pick the invoice that you want to apply the credit note to.
- Thereafter, you can choose the credit note that you want to apply to the invoice.
- In the end, you can verify if the totals are correct.
- And, click on Save and Close.
By following these options, you can easily apply the credit note to the invoice. In case you wish to set up to apply the credits automatically then you can simply follow these steps:
- Go to the Settings option.
- Click on the Company Settings.
- Select the Advanced tab.
- Go to the Edit button in the Automation section.
- Click on the Automatically apply credits checkbox.
- Then, select Save and Done.
This will set the credits to an automation mode. If you don’t prefer to apply for credits automatically then you can also disable it in the future.
To Sum Up
Now if you ever find yourself unsure about Credit Note and Delayed Credit, the article is surely going to help you with that.
Basically, a delayed credit is a non-posting transaction that you can add later to the invoice of your customer. Whereas the credit note can be used in different scenarios. By reading the guide, you can easily learn what is a delayed credit in QuickBooks, and in what kind of situation you need to enter or apply it for the customer.
If you have any questions related to the delayed credit and credit note, let us know in the comment section.
Also, don’t miss this requested guide on how to record daily sales in QuickBooks.