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  #1  
Old 10-03-2017, 12:35 PM
doglover doglover is offline
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Help with Damages and Credit Memo's

Hi,

I just started working for a manufacturing company. I have used Quickbook's for many years but haven't worked for a manufacturing company before.

We have two locations. One of the locations has shipped the product and our customer has received the product broken. For example we send 12 jars in a case and the customer said 9 jars in the case were broken and all the jars in another case were broken. I have two questions. One, How would I enter a credit memo to the customer if they wanted a refund? Two, how would I enter the damages? We will be doing inventory at the end of the year and I want to make sure I do everything right.

I appreciate any assistance you can give me.
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  #2  
Old 10-04-2017, 05:28 AM
Rustler Rustler is offline
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Since the item will not be returned to stock, do not use the item itself on the credit memo

Create a non inventory item called return-noitem, set the expense account on the item screen to a discount account (it should be a sales discount income account, but if you already have a discount expense account use that)

On the customer credit, use that item enter the amount as a positive, when you save the CM, QB will ask if you want to refund it

Two, how would I enter the damages?

There is nothing to enter, the items were expensed when you sold them, and you are not replacing them.
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  #3  
Old 10-04-2017, 12:14 PM
doglover doglover is offline
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Different Credit Memo Question

I understand how to do a credit memo for the items that were damaged. I appreciate you explaining that to me.

How do I enter a credit memo for a credit card refund? We have a customer that was supposed to get a discount and didn't so we refunded the discount on their credit card. The program we use to process and do refunds for credit cards is tied to our Quickbook's. The invoice shows a balance due of $32 and the payment shows that it's short $32.

Thank you for your help.
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  #4  
Old 10-04-2017, 12:49 PM
Froid Froid is offline
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From the beginning, you could have run it using the 'write checks' routine in the banking pull-down.
Unclick the "print later" box and change the check# to NSF.
Probably code it as a reduction to sales. Need to verify your eventual aging versus G/L.
It's a little hokey, but might work for you.

On the other hand, your A/R cust bal should not be off, if you posted the gross credit card receipt there. The refund should create a separate transaction that you record using A/P, with the debit going to revenue/allowances.

No CM necessary.

By the way, I'm not sure about this solution; only occasionally we use either routine to get to the end result. Your results may vary.
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  #5  
Old 10-05-2017, 05:25 AM
Rustler Rustler is offline
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Quote:
Originally Posted by doglover View Post
I understand how to do a credit memo for the items that were damaged. I appreciate you explaining that to me.

How do I enter a credit memo for a credit card refund? We have a customer that was supposed to get a discount and didn't so we refunded the discount on their credit card. The program we use to process and do refunds for credit cards is tied to our Quickbook's. The invoice shows a balance due of $32 and the payment shows that it's short $32.

Thank you for your help.
The CC payment you received, bring that up on screen and hit ctrl+Y to see the journal entry, the account it posts to should have been accounts receivable/customer. Then in receive payments you apply the credit to the invoice to pay it.

If you are going to issue a CC refund for the discount, just do so and use the refunds/discounts income account as the expense for the refund.
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  #6  
Old 10-25-2017, 07:13 PM
John S John S is offline
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Another way to do it is to open the original payment (that should have had a discount), uncheck the invoice it was applied to, then apply the discount as Rustler indicated. Reapply the payment in the same amount of the original payment and the system will tell you there is an overpayment and ask what you want to do with it. Click on Refund to customer and hit save. It will pop up a new window asking how to refund the overpayment. Select the proper bank account and method (I usually just select "cash" as the method) and de-select the process transaction option. It acts essentially the same as a hand-written check that you want to record but not re-print.

The whole process only takes a minute to complete, much less time than it took to explain it.
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