Accounting & Bookkeeping & Small Business Forum

[areedy]

I invoiced a customer, and then this customer was given some credit by our company. Is there a certain way in Quickbooks to record this credit, or I can just use a journal entry against this customer's receivable?

Thank you

[asnider]

you would create an adjusting invoice detail line on the original invoice (if you haven't received payment on the invoice yet)...

in fact, I think quickbooks is crazy enough to let you adjust the invoice after you have received payment too!

i wouldn't do a journal entry against the receivables control account because then you're A/R subledger is going to be different than your G/L when you look backwards. i.e. if the invoice is in open through june, but paid in july, your A/R subledger will be different than your G/L in june and then it will be correct in july.

i am rambling on.....but i have one question......does the invoice have payments applied to it yet?

[areedy]

no, no payments have been received yet

[asnider]

well why don't you just add an additional detail line to the invoice?

[areedy]

You mean I should just add a negative amount reflecting the customer's credit?

[asnider]

Right, if no payments have been applied, then you simply add another invoice detail line with a negative amount. Now you can apply the distribution to discounts allowed or simply to the revenue account as well.....it's up to you.

[areedy]

Sorry for another question, but what if payment has already been applied?

Thank you

[asnider]

Are you going to continue doing business with this customer or do you need to refund them money?

[areedy]

It is a regular customer, that pays rent to our company on a monthly basis, he was issued a credit for the month of July because of some A/C issues.

[asnider]

if you will continue doing business with the customer, then
when you bill that customer again, just add an additional distribution line with a credit amount, so the invoice is reduced by the credit

[areedy]

This way the credit will refer to the next accounting period, though, right?

[asnider]

that's correct.