How to Record Credit Memos with QuickBooks 2011

In QuickBooks 2011, you can create credit memos to show when a customer no longer owes you money or when you owe a customer money. Credit memos may occur because your customer returns items that you previously sold to him or her or because you issue a customer a refund for some other good reason.

To record a credit memo with QuickBooks 2011, first display the Create Credit Memos/Refunds window by choosing Customers→Create Credit Memos/Refunds. Then follow these steps:

  1. Identify the customer, or the customer and the job, in the Customer: Job box.

    Use the Class box for class tracking if you've decided to do that. These boxes work the same way for credit memos as they do for invoices.

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    The Create Credit Memos/Refunds window supplies several buttons that work the same way here as they do on the Create Invoices window: Previous, Next, Print, Find, Spelling, and History. As is the case with invoices, you can create custom credit memo forms. To do this, you click the Customize button.

  2. Provide the credit memo date and credit memo number and confirm the customer information.

    Credit memos, like invoices and sales receipts, include a header. This header includes the transaction date, number, and customer information. You should confirm that the credit memo header information is correct on the Create Credit Memos/Refunds window. If it isn't, edit the default information that QuickBooks uses to fill the Create Credit Memos/Refunds window.

  3. In the columns area of the Create Credit Memos/Refunds window, describe the reason for the credit memo.

    If the customer returned items, for example, use the columns to describe these items and the original price that you are refunding.

  4. Click the Print button to print the credit memo.

  5. Click either Save & Close or Save & New to save the credit memo.

    Note, too, that you can also print credit memos in a batch. Obviously, after you print credit memos, you need to distribute them.

At the time you save your credit memo, QuickBooks allows you to indicate what you want to do with the credit memo: retain it for later application to a customer invoice, immediately apply it to a customer invoice, or issue a refund check.

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