How to Unapply A Credit Memo in QuickBooks?

It may have happened that by mistake you have paid more or recorded the payment more than once to a […]

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It may have happened that by mistake you have paid more or recorded the payment more than once to a bill or an invoice. This gives rise to the requirement to unapply a credit in QuickBooks in order to settle the issue of overpayment and evade any type of future conflicts. Generally, QuickBooks applied the credit to an overpriced invoice automatically from a client, whenever he/she makes an overpayment.

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This is why, in today’s article, we will talk about how to unapply a credit in QuickBooks successfully. But before that, let’s learn what a credit memo in regards to QuickBooks is.

What is a Credit Memo?

A Credit Memo is a type of commercial document in the accounting software QuickBooks that helps to monitor customer payments and any type of payment reductions that may arise because of sudden reasons or situations.

Memos that are generated in the QuickBooks application are usually shown in the particular accounts receivable tab that later is displayed in the customer’s center section. Thus, it can be said that credit memos are designed to provide a transparent look at the credit provided to a customer.

How Many Ways are there to Unapply Credit in QuickBooks?

You can locate all the credit memos that is present in the QuickBooks Desktop application. Now, you should move further and unapply a credit in QuickBooks. However, prior to getting it done, you can talk with your customer about the best way to complete this task.

Here we have talked about the multiple ways that can assist you to remove a credit from a particular bill or invoice.

  • You can create a journal entry in order to write off the amount that is overpaid.
  • Apply the credit to the particular invoice that the customer is required to pay.
  • It is possible to create credit in QuickBooks in order to refund the amount that is overpaid.
  • You may apply the particular credit to an invoice that is unpaid.

How to Find a Credit Memo in QuickBooks?

When QuickBooks is applied automatically to an overpaid invoice to a new client, then it is imperative that you unapply a credit memo in QuickBooks to edit the overpayment done by the customer. To do that, you will need to locate or find the credit memos.

Here are the easy steps in chronological order on how to locate or find a credit memo in QuickBooks:

Step 1: First, you must open the QuickBooks Dashboard, and then press the option Customers and Receivables. It is placed right below the Report option on your window.

Step 2: Now, you need to open the new drop-down list and then you will need to press the option Transaction List by Customer from that specific list.

Step 3: Now you need to press on the option, Customize Report. Now you need to open the particular Filters tab.

Step 4: Now navigate to the Choose Filter Search area and enter Transaction Type in the given search area.

Step 5: Now press on the option, Transaction Type that is displayed on the window and after that, a drop-down list will be showcased on the window. Press on Credit Memo from the particular drop-down.

Step 6: Now, you need to press OK and then it will display all the Credit memos that are available on your QuickBooks Desktop.

Steps to Unapply Credit from Bill in QuickBooks Desktop Software

Have you applied the credit to an invoice or a bill by mistake? Do not need to take tension for it. Here is how you can remove or you can unapply a particular credit from a bill or an invoice in QuickBooks. Just follow the steps mentioned below to unapply Credit from a bill:

Step 1: Navigate to the Vendor Credit List to choose the right vendor.

Step 2: Now press the radio button for Credit to edit the transaction type and then press Save and Close.

Step 3: Choose the Credit Ratio once more to edit the transaction type and then press Yes to confirm.

Methods to Unapply Credit Memos in QuickBooks Invoice

Here are the steps to unapply credit from a particular invoice:

Step 1: Navigate to the Credit Memo list and then press double click on the given invoice that you wish to change.

Step 2: Now, you need to press Apply Credit and then eliminate the chosen credit cards from the initially applied credits window.

Step 3: On the particular Apply Credit Window, press Done.

Step 4: Now, on the given Invoice screen, press Save and Close.

Steps to Unapply Credit Memos from an Invoice in QuickBooks Online

If you wish to delete Credit from a particular invoice in QuickBooks Online, then the steps given below will help you:

Step 1: Locate and then open an Invoice that you wish to change.

Step 2: Now, choose the showcased link with the particular invoice to the Credit.

Step 3: On the given Apply Credit window, press Done.

Step 4: On the Invoice screen, press Save and Close, and then the task is completed.

Do you need help to delete or unapply a credit in QuickBooks from a particular invoice or bill? Then the article is for you. We have mentioned all the steps in this article that will help you to unapply a credit in QuickBooks and hence will help you to delete your overpaid transaction.

However, if for some reason, you could not complete all the steps, or get the desired result, we will suggest you to connect with Dancing Numbers experts team via LIVE CHAT.

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Frequently Asked Questions (Faqs)

What are Billing Statements?

Billing statements usually bill a specific customer who is accompanied by certain charges over a fixed time. To maintain transparency in business, billing statements are important and mandatory.

What are Invoice Statements?

Invoice statements generally function when it is in regard to items purchased and paid for in one single transaction. Also, they do not accumulate over a specific time period. To help a business function smoothly, it is imperative to keep the records intact. Hence, maintaining invoice statements is crucial.

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