omidokunamos236
Level 1
Friday

I want to change a product/service in a credit note when I link it to a customer invoice

I have always used credit note to recognise withholding tax on customer transactions. I fill the credit note and change the product/service to a withholding tax receivable GL I created. That way, it reduces the customer's balance (without altering my revenue) and increase my withholding tax receivable account (asset). Now, this is not possible again while filling the credit note. The product/service cannot be changed again and thats a bit challenging to recognise withholding tax.
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Clark_B
QuickBooks Team
QuickBooks Team
Friday

Manage Customers and income

Hello there, @omidokunamos236. In QuickBooks Online (QBO), you can always update your product/service details at any time, even after it has been created.

 

To begin, please know that the accounts affected will be based on the associated accounts on your product and services. To ensure that the  Withholding Tax Receivable account will be recognized in your created Credit Note, you’ll need to change the associated inventory asset for your products. This way, the specific account will increase its balance. Here’s how:

 

  1. Go to the Gear Icon and select Products & Services.
  2. Locate the specific product and click Edit.
  3. In the Inventory Asset Account column, select the Withholding Tax Receivable account that you’ve created.
  4. Review the changes and click Save.

 

 

Please note that this change will be applied retroactively to all previously created products.

 

If you’re referring to the Category section on the Credit Note page, the option to select a specific Account is currently unavailable.

 

We’re always here to help you if you have further concerns.

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