How to Create a Credit Memo or Refund Checks in QuickBooks Desktop

Here in this article, you will learn about how to create a credit memo or refund check in QuickBooks Desktop. As we know, QuickBooks will make it easier to refund or credit your customers. Let us start a brief discussion on the topic by specifying the steps that help you to create a credit memo or refund check in QuickBooks Desktop.  Still have an issue then contact us:+1-818-295-3510

Steps to Create a Credit Memo or Refund Check in QuickBooks Desktop

Here are the steps to create a credit memo or refund check in QuickBooks Desktop, check it out.

Step 1: Create a Credit Memo in QuickBooks 

For performing this, you are required to go through the steps which we listed below. 

  • In the first step, simply open “QuickBooks” and then move to the “Create Credit Memos/Refunds” option from the “Customers” menu by clicking on it.  
  • After that, choose your Customer from the “Customer: Job” drop-down menu.
  • Enter the items for which you are giving credit, then choose “Save and Close”.

Step 2: Now Select how you want to Handle the Credit

To perform this manually, you have to check out the below steps and implement them on your query. inside the “Available Credit Window”, you can select one of the following and then click on the “OK” option. These steps are discussed below:

  1. Retain as an available credit: In your Accounts Receivable (A/R) register for the credit memo, QuickBooks will enter the negative amounts. Other than this, you can work with this credit as payment to process other transactions. If you have chosen to retain as available credit, then the available credits in the Customer Payment window will appear to you.
  2. Provide a refund: Refunds can be issued in the form of cash, a check, or a credit card.
  3. Apply to an invoice: QuickBooks will open the Apply Credit to Invoices window.  Now pick the invoice you want to apply to this credit.

These steps will help you to handle the credit in QuickBooks, the details of the options are given below:-

Option 1: You can Retain as an Available Credit

  • In the first step, you have to choose “Customers” and then Receive Payments
  • Now choose your Customer, you will get it under the “Received from” drop-down.
  • After that, choose the “Discounts and Credits” icon.
  • Now open the “Credits” tab and check out for the credit you want to apply, then click on the “Done” option.
  • Maybe a prompt will appear to you regarding the transfer confirmation, If you are willing to do this, simply pick the “Yes” option and click on it. The amount will be automatically added to the invoice.
  • Lastly, Simply choose the “Select and Save” to finish it successfully.

Suggested Read: How to Create and Apply Credit Notes or Delayed Credits in QuickBooks Online

Option 2: Provide a Refund

  • In the starting step, the check is filled automatically, and then choose the “OK” option
  • Now it’s time to link your check to overpayment. For performing this you have to visit the “Customers” menu and then pick “Receive Payments”
  • Choose the “Customer”, you will get it from the “Received from” drop-down menu.
  • After that choose the “Discounts and Credits” icon
  • Inside the Available Credit sections, simply check out the check you have to be created and then pick the “Done” option by clicking on it.
  • Maybe a prompt will appear to you regarding the transfer confirmation, If you are willing to do this, simply pick the “Yes” option and click on it. The amount will be automatically added to the invoice.
  • In the End, Once all the steps listed below will be processed properly then you have to click on the “Select and Save” option to finish it.

Option 3: Apply a credit to an invoice

  • At the time of creating the credit memo, ensure that you have to choose Customer: Job”. It will be very helpful in opening the Apply Credit to Invoice Window.
  • Now you have to choose the credit willing to apply automatically.
  • At last, click on the “Done” option to end the procedure successfully.

Steps to write a check for a credit memo in QuickBooks

  • Look for the Plus icon on your screen, and next click on the Check under Vendors column.
  • Next, go to the Category details section, and select and enter the following fields: Accounts – Accounts Receivable. Amount – Credit amount. Customer – Customer’s name.
  • Next, click on Save and close.

How to use Credit Memo to refund already paid amount

  • First, click on the Customers menu.
  • And look for the Create Credit Memos/Refunds and click on it.
  • Next, go to the Customer: Job drop-down, and click on the right Customer.
  • Now, insert the returned items in the line item area.
  • Enter or attach the negative line item for the Shipping.
  • Then click on Save & Close.
  • Now, go to the Available Credit window, click on Give a refund. By following these steps you can issue the refund a check, cash, or a credit card refund.
  • Click on OK.

In Bottom Line

We hope after reading this article you’ll be able to create a credit memo or refund check in QuickBooks Desktop, but if you are facing any kind of obstacle or compatibility issues with your system while implementing the steps, then don’t worry, we have expert services for you, get it at your location by interacting our Intuit Certified ProAdvisors through the helpline number mentioned above. 

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