@afsmith.
Let me start by saying I am NOT an accountant. I'm just a user who believes in doing things the EASY way. I do NOT know how to create a Credit memo...well actually, I muddled through once when a customer asked for it but normally, I don't do this...I just apply the payment to the appropriate customer & I have my system set up to automatically apply to the next invoice created for that same customer.
When I receive a payment that will create an invoice (occasionally some customer pays too much OR accidentally pays the same invoice twice. If this is a customer we do quite a bit of business with then I will receive the payment normally in the following way:
1) Click New button on main screen & select "Receive Payment."
2) Select customer & then complete rest of form as normal by recording type of payment, any notes & amount of payment.
3) If you have NO open invoices for the customer then the system will note (on the bottom of the form) that the transaction will create a credit when you save it.
4) Save the transaction as normal. (ie: Save & New, or Save & Close, etc.) Please note, you MAY have to check the box that says "I have authorization and would like to process this transaction." before the system will allow you to save the payment.
This will then create a credit for the customer.
You need to decide if you want this credit to automatically be applied to the next invoice you create for that customer or if you want to apply it manually at some future time.
As I mentioned above, I have my system set up to automatically apply the credit to the next invoice created for that customer. I do this so I don't have to worry about forgetting to apply the payment manually. Whichever way works best for you....This setting can be found by clicking on the GEAR at the top of your QB screen.
Select the following to find this: GEAR, Account & Settings, Advanced & under the AUTOMATION section,
click "Automatically apply credits" ON or OFF.
I am sure that every step advised above makes perfect sense but honestly, I got confused reading all the steps. Since you got stuck, I thought I would share my simple workaround. ONE LAST note: when you record the payment it WILL automatically appear in your deposit so you can record it & deposit immediately if you so desire. Hope this helps!
