How To Process an Credit Note with QuickBooks Online

Created by Tadiwanashe Muhwati, Modified on Mon, 28 Jul at 11:18 AM by Jo-Anne Macharavanda

When To Process an Credit Note with QuickBooks Online

A credit note is issued by a seller to a buyer for the purposes of correcting, writing off errors or making adjustments in a previous invoice. It is commonly issued in cases of overcharging, return of goods, discrepancies in the goods or services provided, unapplied discounts, order cancellations, or shipping errors. Credit notes ensure accurate financial records, adjust outstanding balances, and prevent financial discrepancies. By issuing credit notes, businesses can resolve issues promptly, ensuring fairness and transparency in transactions while fostering trust with customers.

Steps to Create a Credit Note in QuickBooks Online

Step 1 : Locate the initial invoice

Log in to QuickBooks Online
Navigate to the “+ New” Button

Located on the left-hand toolbar or top-left corner of the screen.

Select “Credit Note” or “Credit Memo”

Under the “Customers” section.

Step 2: Fill Out the Credit Note Details:

Paid Invoices done for the specific customer will appear on the far right tab of the screen as displayed below
Locate and Click "Add" on the invoice
Make sure the field below are inserted

Customer: Select the customer the credit note is for.

Date: Enter the credit note date.

Step 3: Save the Credit Note:

Click “Save and Close” or “Save and Send” if you want to email it to the customer.

How To Process an Credit Note with QuickBooks Online

ChatGPT said:

Steps to Create a Credit Note in QuickBooks Online

Step 1 : Locate the initial invoice