In the line item section of the form, choose the merchandise returned in the Item column and enter a quantity. To create a credit memo, click Refunds & Credits on QuickBooks’ home page or open the Customers menu and select Create Credit Memos/Refunds. When you issue a credit memo to a customer, you have three options for returning the money they paid.

Retaining the funds in the customer account.

You can deal with the amount of the credit by: This is the more complicated of the two and requires more bookkeeping, since you’re tracking the sale, its payment, and the return item. A customer returns an item for which they’ve already paid, and you have to credit him or her for its cost. Do you know when and how they should be used? Here are the basics.Ī credit memo is just what it sounds like. QuickBooks provides forms that allow that transfer of funds: credit memos and refunds. There are times, though, when you have to issue a payment to a customer. It simplifies the process of recording payments and it offers reports that let you keep track of it all. It supports online payments, so you can accept debit or credit cards and electronic checks. It comes equipped with customizable invoice templates for billing customers and sales receipts for recording instant sales.

QuickBooks is very good at helping you get paid by your customers. You’re accustomed to money going in a certain direction, but sometimes you have to pay your customers.

Issuing Credit Memos and Refunds in QuickBooks

Create credit memo in quickbooks