In the recent versions of QuickBooks like QuickBooks 2019 and 2020, there are so many newly added features that were not available in the earlier versions. Now, you can transfer customer credit from one job to another with some simple clicks.
If you don’t know how to Transfer Customer Credit From One Job To Another then we are here to make things easier for you as we will be providing you the complete procedure to do so. Not only this, we will also provide you the manual steps that you need to perform in the 2018 and earlier versions. If you want any kind of help during the process, then you can contact us at our toll-free QuickBooks Payroll Support Phone Number +1888-557-5018.
Note: To complete this action successfully, you are required have access to the Chart of Accounts.
- Open the invoice in which you will be transferring the credit.
- Tap on Apply Credits and you will be displayed the credits from another customer job in the available credits.
- Click on the existing credit and select Done.
- To complete the transfer, click on Yes on the Confirm Transfer window.
Before starting the transferring the credit, let us make it clear to you that this process can’t be reversed and it can’t undone. It is better to consult your accountant before doing.
While doing this action, you will be displayed 2 General Journal Entries created by QuickBooks to transfer these credits to other customer. Memo of these journal entries will display “Transfer of Credits for….” And it will make understanding the things easier for you. Additionally, if the credit feature is being used by you for the first time then QuickBooks will create an Other Current Assets clearing account for moving the credits. You will see that the credit is only used to transfer credits.
How To Manually Transfer Customer Credit?
For QuickBooks 2018 or earlier version and QuickBooks Accountants edition, transferring credits from one customer job to another is not available but you can do it manually. You need to follow the below-mentioned steps in order to do so:
Step 1: Set Up A Clearing Account.
- From List menu, go to the Chart of Accounts
- Right-click anywhere in the window and New.
- In the Add New Account section, click on the Bank
- You can pay into a bank account via Receive Payments or Make Deposits
- You can pay without the bank account by using Write Checks or Pay Bills.
- The bank account will display on the balance sheet and cash flow statements to balances and changes in the balances.
- To allocate expenses to overhead or class using a zero check then you have to use a bank account as your Clearing account.
- Tap on Continue.
- Enter Clearing Account, Barter Account or Wash Account in Account Name
- Don’t enter an Opening balance.
- Click on Save and Close.
Step 2: Create A Journal Entry To Move The Credit From The Customer:job To The Wash Or Clearing Account.
- Click on then Company menu and then click on Make General Journal Entries.
- Debit the Accounts Receivable with the amount that you will be transferring.
- Select the Customer:job in the Name It should be same customer job to which you will be transferring the credit.
- In the second line, credit the Clearing Account.
- Click on Save and then Close.
Step 3: Link The Payment Or Credit To The Journal Entry
- From the main menu of QuickBooks, click on Customers menu and then select Customer Center
- Choose the customer from which you will be transferring the credit and then open the Transactions of that customer.
If you are linking a payment:
- From the transactions list, double-tap on the payment.
- Check the journal entry box and then click on Save & Close.
If you are linking a credit:
- From the transaction list, double-tap on the credit memo.
- Select Use credit to apply to invoice
- Check the journal entry box and then click on Done.
- Click on Save & Close.
Step 4: Create A Journal Entry To Move The Credit From The Clearing Account To Another Customer:job.
- From the main menu of QuickBooks, go to Company and then select Make General Journal Entries.
- Enter the amount that you want to transfer to credit the Account Receivable.
- In the Name field, provide the Customer:job to which you are transferring the credit.
- In the second line, debit the Clearing Account.
- Click on Save & Close.
Step 5: Apply The Credit To The Unpaid Invoice.
- From the main menu of QuickBooks, go to Customers and then select Receive Payments.
- Choose the Customer:job to which you want to transfer the credit.
- Select the associated invoice and then select Discounts & Credits.
- Open the Credits tab and then select the credit(s) that you want to apply.
- Click on Done.
- Click on Save & Close.
Reach Us For Support
This article should be helpful for you in transferring customer credit from on customer job to another customer. It can be done easily by anyone but as we have already said that this action can’t be undone in any case so you have to be more careful before you do this. However, if you are facing any kind of issue during the process then you can contact us at our toll-free QuickBooks Support Phone Number +1888-557-5018 to get an instant support for QuickBooks issues.
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