How to Reassign a Credit Memo to the Correct Invoice in QuickBooks

by Laura Madeira | July 17, 2013 9:00 am

It often happens that you create a credit memo and apply it to a specific invoice. Then, when you communicate with the customer, you find out he or she applied it to a different invoice. When you are making those credit and collections calls, the discrepancy can end up costing you critical time in outstanding invoices paid. If in the end the total due from the customer remains the same, I find it easier to defer to the customer’s records when applying credit memos.

Without agreeing with the customer, your collections process would be delayed as both parties sort out what remains unpaid. This process will temporarily have you reassign the credit memo to another customer. The steps that follow will help you reassign the credit memo to the correct invoice, or at least the same invoice your customer assigned it to:

1. From the Customer Center, locate the customer who had the credit memo applied to the wrong invoice. If you are not sure, click the Customer Center’s Transactions tab and select Credit Memos from the list of available transaction types. You can filter for Open or All Credit Memos as well as transaction dates to narrow your search.
2. To reassign the incorrectly assigned credit memo to another invoice, open the credit memo and temporarily change the Customer or Job name to any other customer or job name.
3. Make a note of the new customer assigned to the changed credit memo. From the Main tab of the ribbon toolbar at that top, select Save.
4. Click Yes to close the message that you want to record the change.
5. Click OK to the Available Credit message, leaving the Retain as an Available Credit option selected.
6. With the open credit displayed and showing a Remaining Credit balance assigned to the temporary customer, click the Customer:Job drop-down list and choose the correct Customer or Customer:Job.
7. Click Yes to close the message that you want to record the change.
8. The Available Credit message displays. Click the Apply to Invoice option.
9. The Apply Credit dialog box opens. Place a checkmark next to the appropriate credit amounts. QuickBooks will, by default, select the invoice with an exact match. You can override this selection by unchecking the default and applying the credit as needed.
10. Select Done. Click Save & Close.

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