Lesson 6-8: There may be a time when you have to create a credit memo that is not related to an invoice. One reason why this option should be performed is if the customer has paid all of the past invoices, but has an outstanding invoice that is not yet due. You can create a credit memo and apply the credit to the invoice the invoice that will be due soon. Additionally, you can write a check for the refund or save the credit to be used on a future invoice. To create a credit memo without a relate invoice, perform the steps in the video below:
Here is a summary of the steps that were performed in the video:
1. To create a credit memo, click the Refunds and Credits icon on the QuickBooks homepage, or click Customers, then select Create Credit Memos/Refunds.
2. Select the customer for which you want to create the credit.
3. In the Item column, choose the item for which you are issuing a credit.
4. If you normally collect sales tax from the customer, select Tax in the Tax column. If you do not collect sales tax form the customer, select Non.
5. Choose the quantity for which you are issuing a credit.
6. In the rate field, enter the retail amount that you would normally charge the customer.
7. The amount field is automatically calculated within QuickBooks, and that calculation is Quantity X Rate.
8. Click the Save Button on the ribbon just above the invoice.
9. You will now see the Available Credit dialog box in which there are three options:
A. Retain as available credit: You will choose this option if the customer would like to use the credit against a future invoice.
B. Give a refund: This option will allow you to immediately write a check to the customer for the amount of the credit.
C. Apply to an invoice: This option will allow you to apply the credit to an outstanding invoice that the customer may have.