In case you need to create and apply a delayed credit to an invoice, you can click here. After adding the credit memo, double-check if the total is accurate.Fill out the rest of the form, including the Payment date.Leave the fields blank for Payment method, Reference no, Deposit to, and Amount received.In the Payment column, enter the amount of the credit you want to apply to the open invoice.Choose the credit memos you want to apply from the Credits section.Select the open invoice to which you wish to apply the credit memo in the Outstanding Transactions section.

Choose the customer from the Customer dropdown.Navigate + New and select Receive payment.Once done, you can then manually apply the credit memo to an invoice: Ensure the Automatically apply credits option is disabled.Search for the Automation section, then click on it.Go to the Gear icon and select Account and Settings.Let’s make sure we turned off the auto apply credits so that the credit memos will be shown. If this isn't the case, I suggest you check your settings and see if the system is automatically applying these credits. Going directly to an invoice, then pressing the Receive payment button, any open credit memos will be listed under the Credit section. I've replicated this situation on my QuickBooks Online (QBO) test account. I’m here to clear things up for you, I’ll help you apply a credit memo to your customer’s invoice in QuickBooks Online. I'm only a few clicks away should you need further assistance. You can read through this article for more insights when running a report in QuickBooks Desktop: Understand reports. These instructions are available from our guide on writing off bad debt in QuickBooks Desktop. Once done, the amount will be deducted in the Profit and Loss report as bad debt. For Discount Account, select the account you added in step 1, and select Done.In the Amount of Discount field, enter the amount you'd like to write off.Enter the name of the customer in the Received from field.Go to the Customers menu and select Receive Payments.If you haven't closed the unpaid invoice yet using the bad debt expense, the invoice won't show in the Profit and Loss report on a cash basis.įollow these steps to write off the unpaid invoice: What accounting method are you using? With accrual-basis accounting, revenue is recognized when it’s earned (which may be different from the period in which the money is received). With cash-basis accounting, revenue is recognized when payment of invoices is received. Thanks for coming to the Community, I'm here to share some insights about writing off unpaid invoices.

Creating a credit memo in quickbooks