UNUSED CREDIT - how to remove

Sure, issue an invoice for the amount and apply the credit against the invoice.

If you just want to cleanup the AR but keep the credit for the customer, then issue a credit memo.

and how do I apply the credit ?

Get rid of?

Refund? Credit the credit to "Misc Revenue"?

What, specifically, do you want to do?

The "unused credit" for your customer reflects in more than one account. Primarily, it reflects in your accounts recievable (as a negative amount, money you will not recieve), in the customer account (as a positive amount, money they paid or services or goods they returned or did not receive). Additionally, the fact that the customer even *has* a credit, can indicate that your sales or other income account(s) need to be adjusted as well.

So, the question is, why do they have a credit, and what do you want to do about it?

If the credit is the result of a service that has been refunded, then you can simply issue a refund check to the customer. Be sure to put the customer:job name in the detail line at the bottom of the account, and use the income account or service item that corresponds to the original invoice. You may wish to add the invoice number in the memo fields. As I do not sell inventory goods I am unsure of the process for item returns, but I am sure you can find it inside the QuickBooks help within the program.

There are situations that arise where there are customer credits without corresponding returns. For example, I have customers who like to round their amounts due. If my bill is say, $151.85 they will pay me $152. For the regulars who do this, I leave the credit on the account to be applied to the next invoice. But, if additional invoices have not been generated over a prolonged period, and it is nearing year-end, I assign any such small credits to an income account set aside for customer over/under payments. This can be done either with a journal entry, by entering the amount as a charge to the customer register, or by creating an invoice that contains a non-taxable item created for this purpose.

The procedure to apply the credit is the same for all cases. Open the 'Recieve Payments' window. You should see one or more lines in the invoice portion, corresponding to the issued check, journal entry, or customer register adjustment. Hilight the item and use the option buttons at the bottom of the screen to apply the credit to the item.

Lisa C wrote: ...

This explanation puzzles me - surely a credit reflects a payment you *have* received, not "money you will not receive"?

Good thing I am not an accountant. I seem to have serious problems communicating ;-)

You are correct, a customer credit generally means the customer already paid for the item or service. Of course, it can also reflect a discount or refund on an item or service. In either case, what I was trying to convey is that the credit affects accounts recievable in such a way that if you look at the A/R register, the credit reduces the balance of the A/R. So, if a customer has paid a $30 deposit, and there exists a $100 invoice, the A/R balance will be $70.

How the credit evolved may determine the method used to 'get rid' of it. If there already is an invoice or journal entry or customer register entry that details the credit, then the OP simply has to apply the credit to the income event in the 'Recieve Payements' window.

Credits do not show up in the receive payments window. Select the invoice you want to apply the credit to and then click the "set credits" button at the bottom

We have similar problem. We sell retail and our credits are removed from any payments from the stores. We are a manufacturer and stores may take a credit even though we do not distribute to. They receive our product through a sub vendor. Now we have credits to stores that we will never sell to. This may be a group of 25 store and they bulk their payments. Because we have no invoices the credit will not show up in the check apply screen for that store. QB wont allow me to apply this store credit to the the paid check amount. We have ghost credits that we cant apply and check payments that wont clear invoices.

replying to Wayne, Alisha wrote: Hello, I had originally given an invoice out, and the client paid half of it. after that i had made out 2 invoices on separate occasions for the balance he paid the amount to those invoices. i collected the payment on the separate invoices. although i still had the original invoice. i took the chq#, the payment date and applied it to the original invoice and deleted the other two. Not knowing it would leave me with a credit. I have to delete this credit, without issuing a credit memo. how do i do that? your prompt response is highly appreciated. Thank you!

replying to nross, Alisha wrote: Hi, did you figure out how to delete that credit? im having the same issue