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In this article you will learn how to transfer credits from one customer job to another in QuickBooks Desktop. To know more contact QuickBooks Support USA.

You can now transfer credits from one customer job to another in just a few clicks with QuickBooks 2019 and later versions.

Please Note: =o complete this process, you must have user access to the Chart of Accounts.

  • Now, open the invoice to which you are transferring the credit to.
  • Click on Apply Credits. Under available credit, you can see credits from another customer job.
  • Click on the existing credits and then click on Done.
  • Select Yes to complete the transfer on the Confirm transfer window.
  • This action is irreversible. Please make sure you consult with your accountant before making any changes if you need to modify/reverse this action.

There will be 2 General Journal entries created by QuickBooks when this action is performed to transfer the credits to the required Job. To make it easier to understand later, the memo for these journal entries will say “Transfer of Credits for …” QuickBooks creates an “Other Current Assets” clearing account to move the credits when the transfer credits feature is used for the first time.

Transfer customer credit manually

You need to manually transfer and apply the credit from one customer job to another if you’re using QuickBooks 2018 and earlier or QuickBooks Accountant. Find below a step-by-step guide for the process:

Step 1: Setting up a Clearing account.

You use to move money from one account to another account when you cannot move the money directly this account is known as a clearing account. You always take out the same amount that you put in; this account normally has a balance of $0.00. It is also known as a Barter or Wash Account.

Given below are the common uses for a clearing account. You may want to create one for each if you have multiple uses for the account.

  • Managing your customers and AR
  • Managing accrual basis bad debt.
  • Under the same customer, move a Credit Memo from one job to another job.
  • From one A/R account to another AR account, transfer the amount.
  • Using a zero check, you should allocate overhead expenses to customers or classes.
  • Record a check that can pay invoices to two customers at a time.
  • Managing vendors and AP
  • From one AP account to another AP account, move the amount.
  • From one vendor on behalf of another vendor record a refunded check.
  • From one vendor to another transfer a bill or a bill Credit for instance, a bill consolidation.

Others

  • Without converting to your home currency move foreign currencies.
  • Now, you need to write off a receivable against a payable.
  • With a company, record barter transaction. Choose a company who is a customer and a vendor.

How to set up a clearing account?

  • Select Chart of Accounts from the Lists menu.
  • In the Chart of Accounts right-click anywhere and then click on New.
  • Select the Bank radio button in the Add New Account window.  Please Note: You can choose from several types of accounts.  A bank can be called the best because of the following reasons:
  • Make payments into a bank account via Make deposits or Receive Payments.
  • You can make payments out of a bank account via Pay Bills or Write Checks.
  • On the statement of cash flows to balances and changes in balances, a bank account appears on the balance sheet.
  • You must use a bank account as you’re clearing an account to allocate expenses to overhead or class using a zero check.
  • Click on Continue.
  • Enter Clearing Account, Barter Account or Wash Account, in the Account Name field .
  • Please do not enter an opening balance.
  • Click on Save & Close.

Follow the steps to use a clearing account:

  • Firstly, create a journal entry.
  • Now, you need to add the AR or AP from which you are moving money.
  • And then add the Clearing account.
  • Save the created Journal Entry.
  • Create another Journal Entry.
  • Add the Clearing Account to this one as well.
  • Now, you need to add the AR or AP from which you are moving money.
  • Link the two Journal Entries together in either Pay Bills or Receive Payments.

Step 2: To move the credit from the customer:job to the wash or clearing account, create a journal entry.

  • Select Make General Journal Entries from the Company menu.
  • Debit the Accounts Receivable on the first line with the amount to be transferred. Select the Customer:job you are transferring the credit from in the Name column.
  • Credit the Clearing Account on the second line.
  •  Click on Save & Close.

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Step 3: Linking payments or credits to the journal entry.

  • Select Customer Center from the Customers menu.
  • Select the customer from whom you are transferring the credit and then go to the Transactions tab.
  • In case you are linking a payment:
  • Double click the payment from the transactions list.
  • On the journal entry, put a check mark.
  • Click on Save & Close.
  • In case you are linking a credit:
  • Double click on the credit memo from the transactions list.
  • To apply to invoice, click on Use credit.
  • On the journal entry, put a check mark and then click on Done.
  • Click on Save & Close.

Step 4: To move the credit from the clearing account to another customer:job, create a journal entry

  • Select Make General Journal Entries from the Company menu.
  • Credit the Accounts Receivable on the first line with the amount to be transferred. Select the Customer:job you are transferring the credit to in the Name column.
  • Debit the Clearing account on the second line.
  •  Click on Save & Close.

Step 5: Applying the credit to the unpaid invoice.

  • Select Receive Payments from the Customers menu.
  • Select the Customer:job that you are transferring the credit to.
  • On the appropriate invoice, put a check mark and then select Discounts & Credits.
  • In the Credits tab, select the credit(s) you want to apply and then click on Done.
  •  Click on Save & Close.

To know more on how to transfer credits from one customer job to another QuickBooks desktop, call on our QuickBooks desktop support number. You can also write to us at support@quickbooksupport.net. For more information visit – www.quickbooksupport.net.

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