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Quick Guide: How to Remove or Unapply a Credit Memo in QuickBooks

  • maxwelljones184827
  • 32 minutes ago
  • 3 min read
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Credit memos in QuickBooks are used to reduce the amount owed by a customer, often due to returned items or discounts. However, there may be times when you need to unapply a credit memo for various reasons, such as correcting an entry or adjusting customer accounts. This guide will walk you through the process of unapplying a credit memo in both QuickBooks Desktop and QuickBooks Online.

Understanding Credit Memos

Before proceeding, it’s essential to understand what a credit memo is. A credit memo effectively reduces the amount a customer owes you. When applied, it lowers the invoice total or balances the customer’s account. Unapplying a credit memo involves removing this credit from the associated invoice or transactions.

How to Unapply a Credit Memo in QuickBooks Desktop

Step 1: Open QuickBooks


  1. Launch the QuickBooks Desktop application on your computer.


Step 2: Navigate to the Customers Menu


  1. Click on the Customers menu at the top of the screen.

  2. Select Customer Center to display the list of your customers.


Step 3: Locate the Customer Account


  1. In the Customer Center, find and select the customer whose credit memo you want to unapply.

  2. Click on the Transactions tab to display all transactions associated with this customer.


Step 4: Find the Credit Memo


  1. In the list of transactions, locate the Credit Memo that you want to unapply.

  2. Double-click on the credit memo to open it.


Step 5: Unapply the Credit Memo


  1. In the credit memo window, look for the section labeled Credits Applied (or similar term depending on the version).

  2. Select the invoice or transaction that the credit memo is applied to.

  3. Click on the Remove or Unapply option, which may be found near the applied credits section.


Step 6: Save Changes


  1. After unapplying the credit memo, click the Save & Close button to save the changes.

  2. Review the customer’s account to confirm that the credit memo has been unapplied appropriately.


How to Unapply a Credit Memo in QuickBooks Online

Step 1: Log Into QuickBooks Online


  1. Access your QuickBooks Online account from a web browser.

  2. Sign in with your credentials.


Step 2: Go to the Sales Menu


  1. From the left navigation pane, click on Sales.

  2. Select Customers to view your list of customers.


Step 3: Select the Customer


  1. Find and click on the customer whose credit memo you want to unapply.

  2. This will open their account details along with their transaction history.


Step 4: Locate the Credit Memo


  1. In the customer’s transaction list, scroll to find the Credit Memo that you wish to unapply.

  2. Click on the credit memo to open it.


Step 5: Unapply the Credit Memo


  1. In the credit memo window, look for the Related Transactions section.

  2. Identify the invoice to which the credit memo is applied.

  3. Click on the Unapply option or Remove. This will detach the credit from the selected invoice.


Step 6: Confirm Changes


  1. After unapplying, review the customer’s account to ensure that the memo is no longer affecting the invoice balance.

  2. Click on Save and Close to finalize any changes.


Conclusion

Unapplying a credit memo in QuickBooks is a straightforward process that can help you maintain accurate financial records. Whether you are using QuickBooks Desktop or QuickBooks Online, following these easy steps will allow you to unapply credit memos efficiently. Always ensure that you confirm changes by reviewing the associated invoices or customer accounts to prevent discrepancies. If you encounter any issues during the process, don’t hesitate to consult QuickBooks Support for further assistance.


 
 
 

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