How to Unapply A Credit Memo in QuickBooks (A Complete Guide)

Sometimes customers make an overpayment for an invoice in QuickBooks accounting software. In such situations you have to unapply a credit memo in QuickBooks.

The overpayment made by the customer can be easily adjusted by simply unapplying a credit memo in QuickBooks accounting software.

When a customer makes an overpayment, QuickBooks automatically applies the credit to an overpaid invoice from a customer. Thus you can select another method to adjust and settle the overpayment made by the customer in QuickBooks accounting software.

Steps to Find Credit Memo in QuickBooks 

When QuickBooks automatically applies an overpaid invoice to the new customer, then you have to unapply a credit memo in QuickBooks to adjust the overpayment made by the customer. In order to do that, first of all, you have to find or discover the credit memos. Let us have a look at the steps on how to find or discover a credit memo in QB.

  • First of all you have to open the QB and then click on the “Customers and Receivables” option which is located below the “Report” option on your screen.
  • Then you have to open the new drop down list and then you have to click on “Transaction list by Customers” from that particular list.
  • Then you have to click on the “Customize Report” option and then you have to open the “Filters tab”.
  • Then you have to go to the Choose filter search area and type “Transaction Type” in that search area.
  • Then you have to click on “Transaction type” that appears on your screen and then a drop down list will appear on your screen, click on “Credit Memo” from that drop down list.
  • Then you have to click on “Ok” and thus it will show all the Credit memos that are present in your QuickBooks Desktop.

Methods to Unapply Credit Memos in QuickBooks Desktop

Since you have successfully discovered the credit memos in QuickBooks. Now let us have a look at different methods to unapply credit memos.

  • 1st Method  :- The first method that you can use is to create a credit memo and then refund the amount that was overpaid by the customer.
  • 2nd Method :- The second method that you can use is to write off the amount by creating a Journal Entry.
  • 3rd Method :- The third method that you can use is to apply the credit to the invoices that the customers have to pay in the future.
  • 4th Method :- The fourth method that you can use is to apply the credit to the invoices which are still unpaid.

Methods to Unapply Credit  from Bill in QuickBooks Desktop software.

Sometimes you have to unapply credit from bills in QuickBooks Desktop. In order to do that you have to follow some steps. Let us have a look at those steps

  • First of all you have to go to the “Vendor Credit list” and then you have to choose the right vendor from that list.
  • Then you have to click on the radio button for Credit in order to change the type of transaction and then click on “Save and Close”
  • Then at the end you have to again click on the radio button  in order to change the type of transaction.
  • Then you have to click on the “Yes” button to confirm.

Methods to Unapply Credit memos in QuickBooks Invoice

Sometimes you have to unapply credit memos in QuickBooks Invoice. In order to do that you have to follow some steps to unapply credit memos in QuickBooks invoices. Let us have a look at those steps

  • First of all you have to open the “Credit Memo list” and then you have to double click on the invoice that you want to change.
  • Then you have to click on “Apply Credit” and then gradually remove the selected credits from the previously opened “Apply credit” screen.
  • Then you have to click on the “Done” button that appears on the Applied Credits screen.
  • Then you have to click on “Save and Close” to successfully complete the task.

Methods to Unapply Credit Memos from an Invoice in QuickBooks Online.

Let us now learn how to do the same activity in QBO.

  • First of all you have to find the invoice that you want to change and then open that particular invoice.
  • Then you have to click on the link that includes the invoice to the credit memo.
  • Then you have to click on the “Done” button that appears on the Applied Credits screen.
  • Then a window will appear on your screen displaying the invoice you selected and then you have to click on the “Save and Close” button  to successfully complete the task.

Final Words

We hope that now you can unapply credit memos in QuickBooks easily by yourself. Just follow all the steps carefully, the methods and solutions discussed in this article will definitely prove to be useful. If you still face some confusion or problems regarding this or any other related problem, then you can drop a call to us at +1-818-295-3510 to seek help from Wizxpert.

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