QuickBooks Refunds and Credits

Software: #QuickBooks Desktop #accounting software

A Credit Note (an Adjustment Note) is a sales form given by the seller to the buyer to correct the mistake made in the Sales Invoice or goods returned.

From the Customers menu of the QuickBooks accounting software select Create Credit Memo/Refunds to add a new Credit Note.

Assuming a customer has returned an item, which he has purchased at $254.80 before tax. You record the item with $254.80, a positive value, in the amount field. QuickBooks will automatically debit the income and credit the Accounts Receivable account. If it is an inventory item, QuickBooks will also debit the stock account and credit the Cost of Goods Sold account when you saved the credit note.

You have an option of retaining the credit note as an available credit, give a refund, or offset the credit with an invoice after saving the credit note.


Although you did not enter the value with a negative, QuickBooks prints the Credit Note form with a negative in front of the credit value.