Accounting software is necessary for every business to simplify its work. Advanced software can improve the production process and achieve success. Apply credit to invoice in QuickBooks Online help the customer if given more amount of money wrongly, then the extra money will be returned to them in their next payment process. It is in document form that is given with the bill that helps the customer to know what the payment is for.
Apply credit to invoice in QuickBooks Online can help employees if they have made a mistake and want to solve this with the customer’s money. In this blog, we will tell you how apply credit card in QuickBooks plays an important role in the growth and development.
What is QuickBooks Online?
QuickBooks Online is an cloud based software. So it can be operated from anyplace in the world with internet connection. It help small and large business in the accounting process. It will collect all the detail, information and create an understandable report of the business. As it is a online based software owner can access the important file and data from any place of the world with an internet connection. It can help the owner to take some useful step for the business success. Its automatic feature of collecting data saves time and reduces the human error that is faced while entering data manually by hand.
Credit Memo In QBO
Credit memo is a type of document that is given to the customer by the supplier that contains details about the deduction price from the bill. It mainly occurs if the customer has wrongly given extra money, the goods is damaged, or return is made. A credit memo contains full details about the order, its time, the amount of goods, the cost for the goods, the payment type, the date of the order, and other details. It will help the business to have a proper financial report.
What is an Invoice in QuickBooks Online?
An invoice is a form of bill that is given to the customer to pay money. It contains detailed information about goods like their cost, quantity, and product name. It can help to know the date of purchase, the supplier name, and phone number, which can be used in later period to order necessary stock of the goods for production. It can be recorded in the report and can be used to create a financial report properly, and help in creating proper tax data. If the order is wrong, you can ask for a change by showing the invoice.
Benefits of Apply Credit to Invoice in QuickBooks Online
QuickBooks Online’ advanced feature of automatic collection of data helps to collect all the billing details and keep them in the record. Automatic collection reduces the human error that is faced during manual entry of the data. Apply credit to invoice in QuickBooks Online is beneficial for the company.
- Customer Relations: Customers get perfect bill and understandable credit memo which attract the customer.
- Balance Reduce: It will automatically reduce the extra balance which was paid in earlier bill.
- Perfect Report: Customer get their amount back in next order as discount and company can properly maintain their record.
- Full Information: The Customer can get full information about the deduction of money from the bill.
- Error Solution: It will help the customer to get proper solution related to the invoice, refund or price-related problem.
- Gift and Cashback: It provides a proper cashback and gift also.
Procedure to Apply Credit to Invoice in QuickBooks Online
You can apply Credit to Invoice in QuickBooks Online with some easy steps:
Open a New Credit Memo
You have to open apply Credit memo QuickBooks Online for the customer which will contain all the information about the money given to the customer. To open a new credit memo you have to follow some steps
- Sign in to your QuickBooks Online account.
- On the left side of the page, you will see a “+Option”, Click on it.
- Move to the customer section, where you find the Credit Memo option, and click on it.
- In the customer section, you have to search for the customer who will get the credit memo.
- Fill all the important details like data, time, Bill No, amount, and goods.
- Once you have filled in all the details, click on the save button and close it.
Apply Credit to Invoice
Now, you apply credit to the invoice in QuickBooks Online that was created using the above step.
- In QuickBooks Online, select the “New” Button again.
- Click on the Payment Receive option from the screen.
- Move to the Customer option and choose the same customer for whom the credit is created.
- Find the invoice for which you want to apply credit.
- Enter all the important data on the Payment Window.
- Move to the outstanding transaction section and see if you have done the right invoice or not.
- Once you confirm that all data is correct, you can press on save button and exit.
Common Problems During Apply Credit to Invoice in QuickBooks Online
Apply credit to invoice in QuickBooks Online can help the customers as well as the business. Here are some errors which occur during the process, it can be reason in a delay in processing of credit.
- Wrong Customer: Sometimes you wrongly select another customer for the Credit.
- Deleted Credit: While creating the credit Memo, you did not press save and directly closed it.
- Wrong Amount: You have wrongly put more or less credit amount in the invoice.
- Internet Problem: Due to a bad internet connection, the procedure failed.
- Delay in Processing: Because of wrong data, it creates a problem fr QBO to create a proper financial report of the business.
How to Solve these Common Problem?
To solve the error that is faced during the procedure toapply Credit to Invoice in QuickBooks Online can be solved by doing some easy procedures.
Verify Customer: Before adding credit, you should properly check the customer’s name.
Save Credit Proper: After putting all the important details, check again, press save, and then click on the exit option.
Enter Correct Amount: Properly calculate and enter the amount for the credit to the customer.
Stable Internet Connection: Try to keep a stable internet connection during the procedure.
Conclusion
Apply credit to invoice in QuickBooks Online is really essential for the business to return the extra amount to the customer that was paid in the last payment. It has a simple, easy procedure to set up. It will help your accounting team to get a proper and understandable report with the help of QuickBooks Online accounting process.