Hey, it's Candus and in today's QuickBooks tips and tricks,
I actually got a YouTube question which
I just have to say real quick.
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getting to interact with you guys
and having you asked me questions, because it gives me inspiration
to create these videos for you.
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So the question today is all about,
if you want to create a partial credit,
I created a video a few
months ago about credit memos,
and I got a question about partial credits.
So what it's about is if you create an invoice for someone,
and then for whatever reason, you need to credit them back a
part of the invoice, say, for the example, the question was about labor.
How do you do that? And then how do you apply it to the invoice
so that it doesn't show that your customer owes you any
doesn't owe you that money on that part of the invoice.
So come look over my shoulder, and I will teach you how.
So here is the actual question and the question is,
if you want to give a partial credit memo to an invoice,
how do you do it? Example,
an invoice,
you would only intend to credit
give a credit memo for labor charged only.
So let me go in, I'm gonna create an invoice and let me show you how you would create
a credit memo. So I'm gonna go into QuickBooks,
and I'm gonna pick one of our
people that we're always choosing
and we are going to find
let's do consulting,
and we are going to charge $100
and then let's do labor,
we're gonna create a new labor because we don't have the labor.
But for this example show them,
what we would do
and we will call that
will this, will leave how much per hours blank
labor is a nontaxable item.
Okay, so we created a new item called labor,
and we're gonna do
$50 on labor. So we're gonna say $100 on consulting $50 on labor.
And,
you know, we could actually do this probably as material, would make more sense.
And it's going to be
$100
Okay, so it's $150,
we're not gonna worry about if the
material is taxable or not in this example.
So we're gonna save and close that
we're gonna close it without a,
we're not gonna worry about the classes. We talked about that last week
and then what we're gonna do is we're gonna go in and we're gonna create a credit memo
So under Ron,
you'll see that he owes you the $150.
He has other invoices, but that's one of them.
So there's a couple different ways to get in and create a credit memo,
you can come down here,
create a credit memo,
or from the home screen, you can click on the credit memo
and then what you're gonna do is you're gonna go in here
and you're gonna select labor
and you're gonna select how much ever the labor
amount is that you're crediting,
or whatever the original item is, and you want to make sure as I said in the original video,
that when you create credit memos, that you create a credit memo,
on the current day you're in, the timeframe you're in
you don't want to backdate your credit memos,
because if you do have sales tax,
or say that you're into the next year,
you don't want to have a problem.
So always do your credit memos in the current year,
and leave the invoice to the timeframe it originally was in.
So we're gonna go ahead and leave it as September 2nd.
So we created the invoice you'll see the invoice over here on the right,
recent transaction invoice was created September 2nd
$450 and we're crediting $50 and I recommend having a description.
So...
whatever it is
agreement
with client,
or customer, whatever, whatever it is, the reason you're giving them the credit,
you want to have
a description or memo in there.
So you can do this two ways, you can save it,
or you can actually go up here and just click
it right here, So
what you can do when you're giving the refund is if they've already paid
you can actually give them a refund.
I mean when you're doing the credit memo, you give them a refund,
or you can actually apply it to the invoice, I'm gonna click Create apply to invoice
and then I'm gonna select the invoice that I want to apply to,
it will automatically choose the oldest,
you want to go down and apply it to the one
if that's the agreement you have with them to the invoice you want
and click
Done
and then
it's gonna leave the balance at zero,
then you can save and close it
and what you'll see
is that
if you go up, down here and you click balance detail
you now have on this $150 invoice you only are showing
a balance of $100
so I hope that answered your question again. I've been loving, loving, loving
you guys commenting,
liking,
sharing my videos I really, really appreciate it's a lot of fun.
I actually really love creating these videos
for you guys.
So,
if you have any questions, feel free to
leave a comment below this video
and just so you know my Confidence with QuickBooks course
is getting ready to come out again
for you guys to
enjoy
in September.
So feel free if you're wanting to find out more about it, I will put a link
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description
you can put your name and email address in so that when
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Have an amazing day guys
Talk to you next week
Bye