what if you don't yet know the invoice you want to apply the credit to for example on February
24 Holden issued credit memo number three to candy for to editing hours candy did not yet decide what
invoice she wants it applied to now here's Candy's open invoice report before we record the credit to
editing hours equals $280 so if we record a credit and we do not apply it to one of the open invoices
it means that the credit will be just sitting there on the open invoice report waiting to
be applied of course it will lower the balance of candy but it will be listed separately from
the invoices and it will not affect the invoices until it's applied so Candy's open invoice report
will look something like this after we record a credit that we did not apply let's take a look
here's Candy's open invoice report and from the main menu we click customers create credit memo
slash refund now the customer is candy the date that we are recording the credit is February 24
computer remembers this is credit memo number 3 the item we're giving credit for is editing and
the quantity is 2 when we push tab we see that this is a credit memo for $280 at the moment
we click Save and close we click the keep number pop-up and then the available credit window will
come to us do we want to apply it to an invoice give a refund or retain as an available credit
in this example we click retain as an available credit when we click OK and we look at the open
invoice for candy we can see this credit memo is a minus 2 Candy's balance and lowers the amount that
she owes us you can see it is separate from the invoices and none of the individual invoices have
been affected yet someday in the future candy decided to apply the credit that we just made
specifically to invoice number 15 the reason I say someday in the future is because only applying a
credit is not a transaction QuickBooks does not record the date that you apply or unup lie a
credit so here's Candy's open invoice now all you have to do is double click on the invoice
that you're applying the credit to use the command in the ribbon and simply choose the credit that
you wish to apply in this case we're applying the credit to invoice number 15 after we do that the
credit will disappear from the open invoice report an invoice number 15 will decrease and become one
thousand seven hundred twenty here we are at the actual open invoice report for candy we double
click invoice number 15 and in the ribbon there's a command apply credits the command is in the
tab of main notice the ribbon has one two three four tabs but you have to click on the main tab
to get the ribbon that has this command apply credits when we click on it the apply credits
window opens up if there were several credits you would see several credits listed here and
you would have to click on the one that you're choosing to apply because there's only one credit
on this list QuickBooks automatically click the checkmark here and selected credit number three
because that's the only credit that candy has available we click done and notice the balance
due for this invoice has already decreased to one thousand seven hundred twenty dollars when
we click Save and close we notice that the if an invoice report shows invoice number 15
is down to 1700 $20 and the lingering credit that was at the very bottom has disappeared
you might need to unapplied credit if you apply that credit to the wrong invoice what would you
do if you apply the credit to the wrong invoice well step 1 open the invoice that already has the
credit step 2 click the apply credit command that we just learned about step 3 remove the checkmark
next to the credit you are changing step 4 open the correct invoice and step number 5 apply the
credit from the command in the ribbon let's reapply the credit we just applied to number
15 to number 10 if we take the credit that we apply to number 15 and we reapply it to number
10 that means number 15 will bounce back to the original balance of $2,000 an invoice number 10
will decrease by the 280 and become 720 so when we're finished reapplying this credit this is what
candies open invoice report will look like once again here are candies numbers before we reapply
this credit all you have to do is double click on number 15 because that's the invoice that has
the credit in the main tab go to the right of the ribbon and click our command apply credits
notice the credit that we made number 3 has now been moved to the bottom section because it says
this is credits that were previously applied all you have to do to uh apply the credit is
remove the checkmark by clicking on it when you click done notice the balance of invoice number
15 has gone up to 2,000 click Save and close now the credit has returned to the open invoice report
because now it's unapplied very simple all you have to do is double-click number 10 click the
apply credits command and then all you have to do is agree that the check mark should be on invoice
number 3 because this is the only assume that you know credit number 3 because this is the
only credit that kandi has if there were several you would have to choose the right one by clicking
on it when we click done notice the balance of invoice number 10 goes down to 720 and when we
click Save and close the numbers in Kandi's open invoice are exactly as what we expected