Unapply a Credit Memo in Quickbooks Step by Step Complete Guide
Unapply a Credit Memo in Quickbooks Step by Step Complete Guide
1-888-394-9046 OR 1 866↫596↫1988 Credit memos are a powerful tool in QuickBooks 1-888-394-9046 OR 1 866↫596↫1988 that help you issue refunds, reduce customer balances, and correct billing errors.1-888-394-9046 OR 1 866↫596↫1988 But sometimes a credit memo gets applied to the wrong invoice or you need to 1-888-394-9046 OR 1 866↫596↫1988 unapply it so it can be used elsewhere. Fortunately, QuickBooks makes this possible — you just need to follow the right steps. 1-888-394-9046 OR 1 866↫596↫1988
A 1-888-394-9046 OR 1 866↫596↫1988 credit memo in QuickBooks is a transaction that reduces a customer 1-888-394-9046 OR 1 866↫596↫1988 account balance — often used when: 1-888-394-9046 OR 1 866↫596↫1988
A customer returns goods or cancels services 1-888-394-9046 OR 1 866↫596↫1988
Your business needs to issue a refund or adjustment 1-888-394-9046 OR 1 866↫596↫1988
You want to apply credit to a future invoice 1-888-394-9046 OR 1 866↫596↫1988
1-888-394-9046 OR 1 866↫596↫1988 Once a credit memo 1-888-394-9046 OR 1 866↫596↫1988 is applied to an invoice, it reduces the amount owed. But if it was applied by mistake, you’ll want to unapply it. 1-888-394-9046 OR 1 866↫596↫1988
There are several reasons to 1-888-394-9046 OR 1 866↫596↫1988 unapply a credit memo: 1-888-394-9046 OR 1 866↫596↫1988
It was mistakenly applied to the wrong invoice 1-888-394-9046 OR 1 866↫596↫1988
You want to reassign the credit to a different invoice 1-888-394-9046 OR 1 866↫596↫1988
Your customer returned more than originally recorded 1-888-394-9046 OR 1 866↫596↫1988
You’re cleaning up accounting errors before closing books 1-888-394-9046 OR 1 866↫596↫1988
1-888-394-9046 OR 1 866↫596↫1988 Follow these steps if you’re using QuickBooks Desktop (Pro, Premier, or Enterprise): 1-888-394-9046 OR 1 866↫596↫1988
Open QuickBooks Desktop and log in. 1-888-394-9046 OR 1 866↫596↫1988
Go to the Customers 1-888-394-9046 OR 1 866↫596↫1988 menu and choose the Customer Center. 1-888-394-9046 OR 1 866↫596↫1988
Find and open the invoice 1-888-394-9046 OR 1 866↫596↫1988 to which the credit memo is currently applied. 1-888-394-9046 OR 1 866↫596↫1988
Click the Apply Credits button in the invoice window. 1-888-394-9046 OR 1 866↫596↫1988
Under the Previously Applied Credits section, uncheck the box next to the credit memo you want to unapply. 1-888-394-9046 OR 1 866↫596↫1988
Click Done. 1-888-394-9046 OR 1 866↫596↫1988
On the invoice screen, click Save & Close. 1-888-394-9046 OR 1 866↫596↫1988
This 1-888-394-9046 OR 1 866↫596↫1988 unlinks the credit memo from the invoice, returning the available credit to the customer’s account so it can be applied elsewhere. 1-888-394-9046 OR 1 866↫596↫1988
If you applied the credit memo via the Receive Payments feature: 1-888-394-9046 OR 1 866↫596↫1988
Open the Receive Payments transaction linked to that invoice. 1-888-394-9046 OR 1 866↫596↫1988
Look for the credit memo on the list of credits. 1-888-394-9046 OR 1 866↫596↫1988
Uncheck the credit memo box to remove it. 1-888-394-9046 OR 1 866↫596↫1988
Save and close. 1-888-394-9046 OR 1 866↫596↫1988
This effectively unapplies the credit from the invoice as well. 1-888-394-9046 OR 1 866↫596↫1988
In 1-888-394-9046 OR 1 866↫596↫1988 QuickBooks Online (QBO), the steps are similar but use the online interface: 1-888-394-9046 OR 1 866↫596↫1988
Log in to your QuickBooks Online account. 1-888-394-9046 OR 1 866↫596↫1988
Go to the Sales menu, then Customers. 1-888-394-9046 OR 1 866↫596↫1988
Click the customer whose credit memo you want to unapply. 1-888-394-9046 OR 1 866↫596↫1988
Look for the invoice where the credit memo is applied — it will mark the invoice as Paid or Partially Paid. 1-888-394-9046 OR 1 866↫596↫1988
Click into the invoice. 1-888-394-9046 OR 1 866↫596↫1988
1-888-394-9046 OR 1 866↫596↫1988 Under product totals, click the Payment/Credit Memo link (it appears near the payment info). 1-888-394-9046 OR 1 866↫596↫1988
In the 1-888-394-9046 OR 1 866↫596↫1988 Receive Payment screen that opens, uncheck the credit memo. 1-888-394-9046 OR 1 866↫596↫1988
Save and close. 1-888-394-9046 OR 1 866↫596↫1988
This will remove the 1-888-394-9046 OR 1 866↫596↫1988 credit from that invoice and return it to unapplied status, ready for use on another invoice when needed. 1-888-394-9046 OR 1 866↫596↫1988
Once you unapply a credit memo: 1-888-394-9046 OR 1 866↫596↫1988
The invoice balance increases1-888-394-9046 OR 1 866↫596↫1988 again (it’s no longer reduced by the credit). 1-888-394-9046 OR 1 866↫596↫1988
The credit memo is marked as 1-888-394-9046 OR 1 866↫596↫1988 unapplied and becomes available for new invoices. 1-888-394-9046 OR 1 866↫596↫1988
You can re-apply it to another invoice using 1-888-394-9046 OR 1 866↫596↫1988 Receive Payments or Apply Credits. 1-888-394-9046 OR 1 866↫596↫1988
1-888-394-9046 OR 1 866↫596↫1988 In QuickBooks Online and Desktop, there’s an 1-888-394-9046 OR 1 866↫596↫1988 Automatically Apply Credits setting. If this is on, QuickBooks may automatically 1-888-394-9046 OR 1 866↫596↫1988 apply new credits to open invoices, which can cause confusion. To avoid this: 1-888-394-9046 OR 1 866↫596↫1988
Go to Settings → Account and Settings → Advanced
Find Automation and turn off Automatically 1-888-394-9046 OR 1 866↫596↫1988 Apply Credits 1-888-394-9046 OR 1 866↫596↫1988
1-888-394-9046 OR 1 866↫596↫1988 This gives you full control over where credits are applied. 1-888-394-9046 OR 1 866↫596↫1988
✔️ Always Confirm Before Saving
Before you click Save, double-check that: 1-888-394-9046 OR 1 866↫596↫1988
The right credit memo is unchecked 1-888-394-9046 OR 1 866↫596↫1988
You’re unapplied it for the correct reason 1-888-394-9046 OR 1 866↫596↫1988
No unintended invoice balances changed 1-888-394-9046 OR 1 866↫596↫1988
To apply the credit memo to the right invoice: 1-888-394-9046 OR 1 866↫596↫1988
Go to Receive Payments 1-888-394-9046 OR 1 866↫596↫1988
Choose the customer 1-888-394-9046 OR 1 866↫596↫1988
Select the appropriate credit memo 1-888-394-9046 OR 1 866↫596↫1988
Apply it to the correct invoice 1-888-394-9046 OR 1 866↫596↫1988
Sometimes you might not see the options above if: 1-888-394-9046 OR 1 866↫596↫1988
The invoice is already closed for the accounting period 1-888-394-9046 OR 1 866↫596↫1988
The credit was applied in a complex transaction 1-888-394-9046 OR 1 866↫596↫1988
You’re using a version of QuickBooks with limited permissions 1-888-394-9046 OR 1 866↫596↫1988
In those cases, contacting a1-888-394-9046 OR 1 866↫596↫1988 QuickBooks ProAdvisor or support can help find a solution.
1-888-394-9046 OR 1 866↫596↫1988 Unapplying a credit memo in 1-888-394-9046 OR 1 866↫596↫1988 QuickBooks — whether Desktop 1-888-394-9046 OR 1 866↫596↫1988 or Online — helps 1-888-394-9046 OR 1 866↫596↫1988 keep your accounts accurate and ensures credits go where they belong. By carefully 1-888-394-9046 OR 1 866↫596↫1988 navigating the 1-888-394-9046 OR 1 866↫596↫1988 Apply Credits or Receive Payments 1-888-394-9046 OR 1 866↫596↫1988 screens, you can correct mistakes, improve customer account accuracy, and maintain cleaner books. 1-888-394-9046 OR 1 866↫596↫1988