Understanding various types of Credits, a comprehensive guide.
Is essential in the world of accounting and bookkeeping, to maintain accurate financial records. As a business owner or accounting professional, you may often encounter situations where you need to process different credits in Intuit QuickBooks.
In this blog post, we will explore the most common types of Credits, Refunds and Adjustments and how to handle them effectively using Intuit QuickBooks. We’ll delve into refund receipts, delayed credits, supplier credits, credit card credits, and adjustment notes, providing step-by-step instructions on how to process each one.
Let’s explore the various types of credits in QuickBooks and how they can be effectively managed using Intuit QuickBooks.
Refund Receipts: Processing refunds for clients after receiving payments.
Delayed Credits: Promising credits to customers for future purchases or account adjustments.
Supplier Credits: Handling credits issued by suppliers due to overcharging or returned goods.
Credit Card Credits: Managing credits received from credit card companies.
Adjustment Notes: Modifying invoices and providing credits or adjustments to customers.
QuickBooks Refund Receipts:
A refund receipt in QuickBooks is used when you need to refund a client after receiving their payment. To create a refund receipt, navigate to the “Create” button and select “Customer” from the dropdown menu. Choose the correct customer, enter the refund date, select the bank account the refund will come from, and specify the service for which the refund is being issued. Finally, indicate whether the refund amount is inclusive or exclusive of taxes and save the transaction.
QuickBooks Delayed Credits:
A delayed credit is a non-posting transaction that doesn’t affect your bank account or customer balance until it is applied to an actual invoice. It is useful when you want to promise a credit to a customer for future purchases or account adjustments. To create a delayed credit, go to the “Create” button, select “Customer,” and choose “Delayed Credit.” Enter the customer’s details, the credit amount, and save the transaction. When the customer makes a purchase, you can apply the credit to their invoice, ensuring you don’t forget the promised credit.
QuickBooks Supplier Credits:
Supplier credits are used when your supplier issues a credit to you, either due to overcharging or returning goods. In QuickBooks, you can record supplier credits to maintain accurate accounts payable records. To process a supplier credit, click on the “Supplier” column under the “Create” button and select “Supplier Credit.” Choose the appropriate supplier, allocate the credit to the correct expense category, enter the credit amount, and save the transaction. You can then apply the credit to an existing bill or let it offset future payments to the supplier.
QuickBooks Credit Card Credits:
When you receive a credit from a credit card company, you can manually process a credit card credit in QuickBooks or match it with the transaction imported through bank synchronization. To manually process a credit card credit, select the appropriate supplier from the “Create” button and choose “Credit Card Credit.” Enter the credit card details, select the expense category, input the credit amount, and save the transaction. If your credit card transactions sync with QuickBooks, you can match the credit card credit with the corresponding transaction in the banking center.
QuickBooks Adjustment Notes:
Adjustment notes are used to modify an invoice, either to correct an error or to provide a credit or adjustment to a customer. To create an adjustment note, click on “Create” and select “Adjustment Note.” Choose the customer, specify the type of adjustment (credit or reduction), select the original invoice, and enter the adjusted amount. Save the adjustment note, and then go to the “Receive Payments” option, select the customer, and apply the adjustment note to the correct invoice. This ensures the invoice reflects the adjusted balance accurately.
Understanding and correctly handling different types of credits in QuickBooks is crucial for maintaining accurate financial records and ensuring smooth accounting processes. By familiarizing yourself with refund receipts, delayed credits, supplier credits, credit card credits, and adjustment notes, you can efficiently manage transactions and maintain accurate accounts receivable and accounts payable records. Intuit QuickBooks provides intuitive tools to handle these transactions seamlessly, streamlining your bookkeeping processes and enabling you to provide excellent financial management for your business.
Remember, if you ever face challenges or have questions regarding credits or any other QuickBooks features, don’t hesitate to reach out to the QuickBooks specialist Lauretta Finis, who is expert in using QuickBooks to streamline your accounting processes and provide valuable guidance to businesses. Her expertise can help you navigate the complexities of accounting software, ensuring you make the most of its features and effectively manage your business’s financial health.
Lauretta is currently a member of the Australian Intuit Trainer/Writer Network, presenting courses, workshops and advising how to be efficient in QuickBooks Online from basic to advanced levels, to professional QuickBooks Advisors, and Business owners in hundreds of training sessions throughout Australia. “Quick Bizness Bookkeeping Solutions” Lauretta’s bookkeeping practice, commenced in 2005, she was honored by winning the Australian runner-up, in Intuits Global Firm of the Future search in 2016. Lauretta in 2021 won after being named in the top 100 advisors globally the top honour of The Top International Global advisor.
She is your - go to girl and QuickBooks Specialist