Quicken & Other Budget/Accounting Software/Credit Memo


Invoice A from Company ABC = $155,000.00
Details of the invoice :
1)Classification $100,000 for Item 1
2)Classification $55,000 for Item 2

Today, the invoice amount has been revised to $152,150.00 and company ABC issued us a credit memo of $2,850 for this invoice.

How do i record into the system the credit memo?
What do i put in the classification of account for this credit memo?

Usually a Credit memo will give a reason why the credit was issued and then
based on that reason you would post to the most appropriate chart of accounts.

If no reason was given then you would prorate the credit memo over the allocations
made in the original invoice
to arrive at the  value (100/155) x  2850  and (55/155 ) x 2850

Debit Accounts payable and
Credit classification for item 1
Credit classification for item 2  

Generally,  accounting software should contain a "credit bill"  that can be used to
post debits to accounts payable.   Look around in the software for such a transaction type.
It would be better to use that then the journal entry.

Linda Saltz,  CPA
Advanced Certified QuickBooks Advisor

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Linda Saltz, CPA, QBalance.com


QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com


Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

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