How to knock off QuickBooks’ credit note?

I saw some of my clients' QuickBooks data file; the adjustment note (credit note) to their customer was not knocking off against the invoices. Thus, this result in many of these credit accounts receivable still reflected in the accounts receivable ageing report.

Most of the reason for this was they do not know where or rather how to clear off these credit accounts receivable amount.

How to knock off these credit accounts receivable?

For user who are using QuickBooks version 6 or 8, you can go to the Receive Payment form, select your customer name and "check" the check box for "apply existing credit" and select your invoice to apply with this credit.

For QuickBooks version 2002 to 2007/08 user, you can go to the Receive Payment form and select the invoice to be applied to the credit; then, click the "Set Credit" button and select your credit note that to be applied from the sub-window.

As for QuickBooks 2009/10 user, it is much more easier, in the Adjustment/Refund form (Credit Note), click the "Save & Close" button QuickBooks will prompt you whether you want to:

  • apply credit to the existing invoice
  • create a cheque refund, or
  • retained as credit balance

These feature helps user to follow up your next action after adjustment note (credit note) is being created. This is a wonderful feature, it further enhance the ease of use of QuickBooks accounting software.

To further illustrate this feature, you can attend our regular QuickBooks weekly demo at our office.