Accounting Help

Your Accounting Software questions answered here

How to Issue a Credit to Customers

Background:

There may be times when you need to issue a credit to your customer. This could be due to returning items they purchased from you, or other miscellaneous refunds you want to give. You can issue a credit for your customer and apply this credit to future invoices.


To issue a credit to a customer in accounting

  1. Go to Accounting > Receivables > Credits
  2. At the top of the page, click “Create New Credit.”
  3. Select the customer.
  4. The date will default to today—you can change it if needed.
  5. The credit memo number will auto-fill with the next available number. You can edit this if necessary.
  6. Accounting > Receivables > Credits
  7. At the top of the page, click “Create New Credit.”
  8. Select the customer.
  9. The date will default to today—you can change it if needed.
  10. The credit memo number will auto-fill with the next available number. You can edit this if necessary.
  11. If you’re using departments, select the appropriate department for this credit.
    See Managing Accounting Departments for more.
  12. Choose the product or service the credit applies to.
    To add new items, see Setting Up Products and Services.
  13. Enter the quantity (if applicable) and the credit amount.
  14. Select the account the credit should be recorded under.
  15. (Optional) Add a description or any additional credit comments.
  16. To enter multiple credits, click “+ Add Row” and repeat the steps above.
  17. Click “Save Credit.”

Once saved, the credit appears on the customer’s Credits tab. Credits have one of two statuses:

  • Open: The credit is available to apply to invoices.
  • Applied: The credit has already been used.

Next steps:

Your feedback will not receive a reply. If you have a specific issue, please reach out to our support team here.