QuickBooks : Between-Jobs Credits Transfer

Posted on
January 17, 2019
in
QuickBooks Desktop
Posted by
Ronald B. Allen

A new feature of QuickBooks Desktop 2019 makes it easy to transfer unused customer credits from one job to another job for the same customer or to unpaid invoices. Thanks to Intuit for providing us with this long-needed feature and for making it easy to do in just a few steps.

Note: This graphic was created using a pre-release QuickBooks 2019 version.

The key to this feature is that when customer credits are shown within a transaction, they will be seen as “unused credits across all jobs.” This makes it easy to spot available credits which you can then move to another job simply by clicking.

NOTE: This feature has to do with credits for the same customer. You cannot use it to move credits from one customer to the next!

How to Transfer Same-Customer Credits between Jobs

One) Choose the desired customer in the CUSTOMER CENTER

Two) Select the invoice to receive the credits; Click the Manage Transactions

drop down menu; Select Receive Payments

Note: This graphic was created using a pre-release QuickBooks 2019 version.

Three) Next, from the top menu choose Discounts and Credits; Click the Credits tab. This will give you a list of all the credits available for the customer

 Note: This graphic was created using a pre-release QuickBooks 2019 version.

4) Choose which credits you want to apply and click “DONE”

Note: This graphic was created using a pre-release QuickBooks 2019 version.

5) When you see the Confirm Transfer window, continue by clicking “Yes”

6) Now, you can save the payment

NOTE: Make sure that you want to transfer credits and just how you want to do it. This is not an easy process to reverse! If reversal of the transaction is necessary, ask your accountant to verify that it needs to be done. Then, you will need to make certain that the customer account and your own books are still correct and balanced.

The way between jobs credit transfers work:

When you first transfer credits in this manner, QuickBooks creates a new clearing account within “Other Current Assets.” This new account will be called "Account for Credit Transfer" and it will be what moves the credits (see below).

NOTE: This is an inactive account and should remain so. Its sole purpose is to allow QuickBooks to transfer the credits. The account must also keep a “zero balance.” Should it show up on the balance sheet or in the general ledger with any balance amount, you must reconcile the account manually and find out why the balance is not zero!

Note: This graphic was created using a pre-release QuickBooks 2019 version.

To transfer each credit (see illustration) QuickBooks creates two general journal entries. The two entries move the credit or credits through the clearing account from job to job as you desired. QuickBooks creates a memo (Transfer of Credits for) which will help to identify any credit transfers for auditing and tracking.

Note: This graphic was created using a pre-release QuickBooks 2019 version.

This is really a welcome enhancement to the QuickBooks toolbox. It makes the task faster and much more efficient to transfer same-customer credits from job to job.

Disclosure:

We have used some images from a pre-release version of 2019 QuickBooks software. Others are adaptations of source content from Intuit. It is possible that some of the described features shown in the images might have been changed in the published version.

Please read this article as a summary of one feature of the 2019 QuickBooks product. It is not a review in depth and should not be seen as instruction for how to use the new QuickBooks 2019 version.

Furthermore, opinions expressed in this article are those of the author regarding the software and the specific feature described. None of this should be construed as an endorsement of by Exigo Business Solutions.

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