A credit memo is used to return the amount to the customer for the returned items. In this guide, we will discuss how to refund credit memos in QuickBooks Online and answer the “how do you un apply a credit memo in QuickBooks” question in detail.
In this specific guide, we will cover the following questions related to QuickBooks credit memo refund and how to unapply a credit memo in QuickBooks Online and QuickBooks Desktop:
- How Do I Refund a Credit Memo in QuickBooks Online?
- How Do You Unapply a Credit Memo in QuickBooks?
How Do I Refund a Credit Memo in QuickBooks Online?
If you choose to refund a credit memo then the refund can be issued in a check as well as in cash or even on a credit card. Must Learn how to enter Credit Card Charges in QB online, Desktop and Pro. To use the refund option, pursue the steps mentioned below:
- Click on the “Customers” option.
- Then, click on the “Create Credit Memos/Refunds”.
- Click on the “Customer: Job” dropdown.
- Now, select the appropriate customer from the list.
- Enter the items returned by the customer in the “Line Item” area.
- Now, for the “Shipping”, enter the negative line item.
- Hit the “Save & Close” button.
- When you see the “Available Credits” section, choose the “Give a refund” option.
- Hit the “OK” button.
This is how you can easily issue the refund as a check, cash, or a credit card refund. All you have to do is create a credit memo, select the customer, add required details such as the returned item, and save the information in the QuickBooks account.
How Do You Unapply a Credit Memo in QuickBooks?
There can be instances when you overpay the customer or record the payments twice mistakenly/accidentally. In case this happens, you can simply reverse the action. In other words, you can unapply the same credit memo from the record.
Before you learn how to unapply credit memo in QuickBooks, one has to find the credit memos in their QuickBooks account.
Thereafter, you can unapply credit memos either from a Bill or Invoice in QuickBooks Desktop. In QuickBooks Online, credit memos can be unapplied from the invoice. Let’s understand the whole procedure with step by step instructions.
How to Find the Credit Memos in QuickBooks?
As stated above, it is important to locate the credit memos so that you can unapply them from the record. Here are the steps that you can pursue:
- Go to the “Reports” menu.
- Click on the “Customer and Receivables” option.
- Then, click on the “Transaction List by Customers” option.
- Now, go to the “Customize Report” option located on the top.
- Then, click on the “Filters” tab.
- In the “Choose Filter” section, type in “TransactionType”.
- Choose the “Transaction Type” when it appears in the result.
- Then, select the “Credit Memo” from the dropdown.
- Hit the “OK” button.
After you implement all these steps, you will see all the credit memos that you have in your QuickBooks account. These are the easy steps to locate the credit memos in QuickBooks.
In case you wish to settle the overpaid invoice in QuickBooks then you can follow these steps mentioned below:
- Create a credit memo to refund the amount to the customer.
- Now, make a “Journal Entry” so that you can write off an amount.
- Here, you need to apply the credit to another invoice.
- Then, apply the credit memo to the unpaid invoice.
This is how you can settle the invoices that you overpaid accidentally. Now that you know how to find the credit memos and settle the overpaid invoice, you can unapply the credit memos in QuickBooks. Let’s get started!
How to Unapply Credit Memo in QuickBooks Desktop?
Those who prefer to use QuickBooks software on their computer can unapply the credit memos that they have applied mistakenly. For this process, you can choose two ways either from the Bill (from Vendor Credits list) or Invoices (Credit memo list). We will now understand both the ways with a step by guide.
Unapply Credit Memos From the Bill (Vendor Credits List)
First, let’s start unapplying the credit memo from the Bill. Here you just need to choose the vendor and change the transaction type.
- Go to the “Vendor Credit” list.
- Pick the appropriate vendor.
- Then, click on the “Credit radio” icon to change your “Transaction Type”.
- Hit the “Save and Close” button.
- Click on the same “Credit radio” icon to change your “Transaction Type”.
- Hit the “Yes” button.
Related Topic: How to Merge Vendors in QuickBooks Desktop?
After you confirm your actions, the changes will be applied which means the credit memo will be reversed or unapplied in your QuickBooks Desktop.
Unapply Credit Memos From the Invoice (Credit Memo List)
In case you wish to unapply the credit memo from an invoice then you can do it from the Credit memo list. To do so, you can pursue the steps mentioned below:
- Click on the “Credit Memo” list.
- Then, click twice on the invoice that you wish to modify.
- Now, select the “Apply Credits” option.
- After this, you can delete the selected credits. This can be done from the “Previously Applied Credits” window.
- Hit the “Done” button when you see it on the “Apply Credit” window.
- Click on the “Save & Close” button on the “Invoice” screen.
These are the two different ways such as Bill (from Vendor Credits list) or Invoices (Credit memo list) using which you can unapply the credit memos successfully in QuickBooks Desktop.
How to Reverse a Credit Memo in QuickBooks Online?
If you are using QuickBooks Online then there is a way to easily unapply the credit memo. You can do it from the Invoice. To understand clearly, you can follow these steps stated below:
- First of all, open the invoice that you wish to change.
- Now, choose the link that appears on your screen along with the invoice to credit.
- Click the “Done” button on the “Apply Credit” screen.
- Hit the “Save & Close” button on the “Invoice” screen.
This is how you can remove the credit memo from the invoice in QuickBooks Online. This will prevent you from paying extra to the customer, learn how to enter and pay bills in QuickBooks.
To Wind Up
In QuickBooks, there can be instances when you mistakenly pay an extra amount to the customer. In such scenarios, you can remove the credit and apply the relevant information to the invoice. Thereafter, you can send the invoice to the customer. This can be done in both QuickBooks Online and QuickBooks Desktop.
For QuickBooks Desktop, you can unapply credit memos either from a Bill or Invoice in QuickBooks Desktop whereas for QuickBooks Online, credit memos can be unapplied from the invoice only.
In this guide, we have shown how to refund credit memo in QuickBooks online and how to unapply a credit memo in QuickBooks. By following this step by step guide, you can easily remove the credit memo from the invoice. If you still have any questions, let us know in the comment box.
If you want to learn how to backup and restore files in QuickBooks, check this guide out to get detailed information.