Friday, January 23, 2009

A QuickBooks Enterprise user wants to know a way to apply excess credits from one job to another job.

An easy way to do this without changing the history of the original transactions that were applied to the jobs is to create a new “Other Current Liability” account called, “Customer Credits Exchange”. The first step is to move the credit into this account without removing it’s history from the job. This is accomplished by a journal entry that debits Accounts Receivable and credits the Customer Credits Exchange. Entering the job name in the Name column creates an invoice against which the outstanding credit can offset. Next, go to the receive payments for that job, leave the amount at $0 and click on the “Discounts and Credits” box to apply the credit to the new charge. This will leave a zero balance on the job that previously showed an outstanding credit. To apply the credit or a portion of it to another invoice, go into Receive payments again and pull up the job you want to apply the credit to. Click on Discounts and Credits and create a discount for the amount you want to apply and use the “Customer Credits Exchange” account as the discount account. The net effect is to reduce the Customer Credits Exchange account to zero, and the second job balance has been reduced by the amount of the credit on the first job

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