QuickBooks users can send payments to the vendors or customers for the services or sold products. For this process, creating and sending the bills or invoices is required. If your customers make an overpayment for the invoice you shared with them, you can adjust this payment in different ways. Although QuickBooks applies for the credit automatically to the overpaid invoice from the new customer. However, you can discuss it with your customer to know their preferences for settling the extra payment. Here, in this guide, we will explain how you can remove the credit from the bills and invoices. Let’s read how to unapply a credit in QuickBooks Desktop and QuickBooks Online.
Learn about QuickBooks Credit Memo
Before you learn how to unapply a credit in QuickBooks, we would like to enlighten what a credit memo is and how it performs for payments in QuickBooks.
A commercial document, Credit Memo helps you to track customer payments and other payment reductions that can occur in unexpected circumstances. By using the credit memo, you can get a clear picture of what credit has been given to the customer. The memos you create within QuickBooks displays in the Accounts Receivables tab. In addition, it can be accessed from the Customer’s Centre option.
If for some reason, you want to remove the credit memo that you applied for the customer, it can be done in different ways. For instance,
- You can prepare the refund and credit that is overpaid.
- If required you can apply the credit in your next invoice.
- Create the Journal Entry to write off an amount.
- You can apply the credit to some other invoice that is yet to be paid
For better understanding, you can continue to learn how to unapply a credit in QuickBooks Desktop and QuickBooks Online.
How Do You Unapply a Credit Memo in QuickBooks Desktop?
To unapply payment in QuickBooks Desktop, one has to know where to find the credit memos in the QuickBooks app. Thereafter, you can remove or unapply the credit memos from bills or invoices. Let’s find out how to unapply payment in QuickBooks Desktop:
Find the Credit Memos in QuickBooks
To find the credit memos, you can go through the Reports menu and choose the type of transaction. You can perform the following steps to find the credit memo in QuickBooks Desktop:
- First of all, log in to “QuickBooks Desktop”.
- Then, click on the “Report” menu.
- Choose the “Customers and Receivables” option.
- After this, select the “Transaction List by Customer” drop-down option.
- Now, you can select the “Customize Report” option.
- Switch to the “Filters” tab.
- Here, you can search for the “Transaction Type” by using the search field.
- Now, you can click on the “Transaction Type” option.
- Choose the “Credit Memo” by using the drop-down option.
- Click the “OK” button.
At this point, you will find all the credit memos in your QuickBooks Desktop account. Now, you can continue following the guide to delete the credit memos from the invoices and bills.
Unapply Payment in QuickBooks Desktop from the Invoice
If you have applied the wrong credit and want to remove the credit card payment from the invoice, the following steps can be followed in QuickBooks Desktop. Let’s learn how to unapply credit to invoice in QuickBooks:
- Press the “Ctrl + H” keys together in order to show the transaction history.
- Then, open the invoice with a double-click.
- Now, click on the “Apply Credits” option.
- When the “Previously Applied Credits” window opens, you can remove the selection for the credit you have applied.
- Here, you can click on the “Done” button in the “Apply Credits” screen.
- Click on the “Save and Close” button on the invoice.
Unapply Payment in QuickBooks Desktop from the Bill
In case you applied the vendor credit memo on the bill, you can remove it from the bill. Let’s find out how to unapply a credit from a bill in QuickBooks:
- First of all, search for vendor credit.
- Then, click on the “Bill” radio icon to change the type of transaction. Make sure you change it from bill to credit.
- Later, you can click on the “Save and Close” button.
- Now, you can open the bill and change its transaction to credit. For this, you can click on the “Credit” radio icon.
- Press the “Save and Close” button.
- When you see the prompt for changing your transaction, you can click the “Yes” button.
This way you can remove the customer credit or vendor credit from the invoice and bill in QuickBooks Desktop. Now that you have learned the procedure for the desktop version, continue following the guide for the online version.
How to Unapply a Credit in QuickBooks Online?
Credit Memo can also be removed from the invoice in QuickBooks Online. All you have to do is find the invoice, open it, and remove the applied credit.
- To get started, you need to find the invoice and then open it.
- Then, you can click on the link displayed with an invoice to a credit.
- Now, click on the “Done” button on the “Apply Credit” screen.
- When you see the “Invoice” screen, click on the “Save and Close” button to complete the task.
By following a few steps, you can easily unapply or remove the credit from the invoice in QuickBooks Online. Make sure you don’t forget to save the changes.
Credit Memo can be used while making payments in QuickBooks. In case your customer paid you twice, you can adjust this payment in different ways. You can prepare the credit and refund, write off the amount, or apply the credit in a new invoice. Here, we have shared some easy steps on how to unapply a credit in QuickBooks Desktop and QuickBooks Online. You can follow this guide based on the software version you are using.
If you want to remove print queue and scheduled payroll in QuickBooks, the following guides may come in handy: