Record your Credit Memos
Credit memos are documents that state that the buyer or seller owes some amount of money. It is generated to make refunds or concessions on related items bought by a customer.
Sometimes disputes arise between seller and buyer regarding money, defective pieces, etc. In such cases, the seller issues a credit memo, so he can’t lose his buyer.
In this article, we will discuss how you record your credit memo in QuickBooks.
1.What is a Credit Memo?
A credit memo or Credit memorandum is a document issued by a seller to their buyer for reducing the amount of item he purchased. The seller issues it after sending an invoice to the buyer.
It contained all the details of items purchased, their actual price, agreed on a price, etc.
2.What does Credit Memo contain?
A credit memo contains all the information regarding the items purchased by a buyer from the seller, such as product number, actual price, agreed on price, quantities, date of purchase, address where it has to be shipped, and some other relevant data. This will help a seller to keep track of all the purchases made by a buyer.
3.Record Credit Memos in QuickBooks
To record the credit memo, follow these steps –
- Open QuickBooks and go to the customer option.
- Click on create credit memo/refund
- A window of a credit memo will open, click on the customer job option.
- Enter all the details such as credit memo number, customer name, date of issue, customer job, and then confirm it.
- Then a reason box appears, mentioning the reason for issuing a credit memo.
- Click on the save and close button.
- Your credit memo has been recorded in QuickBooks.
4.Journal entry for credit memo
So you have issued a credit memo to the buyer and now want to do a journal entry. Follow these steps
- Go to the banking option.
- Select Account and settings.
- Click on billing and then click on the + new icon.
- Options appear, select journal entry.
- The first line is for credit, mentioning the amount on the credit side.
- The second line is for debit, mentioning your debited amount.
- Enter the name of the vendor.
- Confirm and click on save and close.
5.Print the credit memo in QuickBooks
After recording your credit memo, there is also an option to take out the print of your credit memo.
- Go to the File menu option.
- Click on print forms.
- Select your credit memo.
- Setup your printer interface.
- Preview your Credit memo before printing.
- Insert the papers.
- Give the command to print.
6. Customer care support
If you are facing any kind of problem while recording a credit memo, you can call the customer care number, which is available on a software website. The service is open 24/7.
Summary
Credit memo always issued by a seller to buyer when somehow he owes money. A credit memo is an important commercial document, you have to keep a record of it.
It has a negative impact on your business. Well, QuickBooks has all those features you require to record, create, print your credit memo.
Here we discuss how you can record your credit memo in QuickBooks. We hope you understand these steps.
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