Give a customer a credit memo

You can give a credit memo to immediately post the transaction. Or if you prefer to include the credit as a line on the customer's next invoice, enter a delayed credit.

A credit memo affects the customer's balance. However, QuickBooks does not apply the credit memo to a particular invoice. Learn how to apply the credit memo to an invoice.

If you are refunding the customer at the same time (by writing a cheque, refunding a credit card, or giving cash back), you should enter a refund instead of creating a credit memo .

  1. Click Create (+) > Credit memo.
  2. Choose a customer to credit, or click Add New to add a new customer.
  3. If necessary, change the Credit Memo Date to the date you are issuing the credit.
  4. (Optional) If you use custom transaction numbers, edit the credit memo number, if necessary. If you use automatic numbers, you don't see the credit memo number. In this case, QuickBooks assigns the credit memo a number after you save it.
  5. If you use custom fields, enter the appropriate information in the fields.
  6. Enter each charge included in this credit memo.
    Product/Service

    If you don't see a Product/Service column, using products and services is turned off. You can turn it on in Gear icon > Company Settings. How?

    Description

    The Description text appears on this printed or sent credit memo, but it doesn't appear on the customer's next statement unless you set the preference to use detailed statements.

    Qty/Rate

    Together, Qty and Rate calculate the amount for a line. If you don't see Qty and Rate, they are turned off for your company. You can turn it on in Gear icon > Company Settings.

    If you change the rate for a product or service, the change doesn't affect the rate for future uses of it.

    Amount

    Enter an Amount if you didn't fill in the Qty and Rate.

    Sales Tax

    Select the tax for this credit.

    If you don't see a sales tax column, sales tax is turned off for your company. To turn it on, click Sales tax in the left navigation menu and then click Set up Sales Tax.

    Service Date

    Use the Service Date to indicate when a service was performed or a product was sold. If you don't see the Service Date column, it is turned off for your company.

    Class

    (Optional) Choose a Class. If you do not see Class, class tracking is turned off. What is class tracking?

  7. To apply a discount, click the Discount drop-down arrow and select either Discount Percent or Discount Value. Then enter a number in the field to the right. (If you don't see a discount field, Discounts are turned off for your company.)
  8. Click the sales tax drop-down arrow and select a sales tax rate.
  9. (Optional) In the Shipping field, add any shipping charges you are crediting, if applicable.
  10. (Optional) In the Print message to customer field, enter a message for the customer. This text appears only on the credit memo, but not on the customer's next statement.
  11. (Optional) Enter a Memo. The memo text doesn't appear on this credit memo, but it does appear on this customer's next statement.
  12. Depending on your need, you can save, print, or send this transaction.

See also

What account does a charge post to?

Customize the way a credit memo looks when printed