2013
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Process customer returns and credits
Write off customer invoices (record bad
debts)
Create customer statements
Collect sales tax
Create sales reports
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Use Credit Memos in following situations:
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Cancel an order that has been invoiced
Returned merchandise
Credit-on-account for a customer
Refunding a customer
Customers menu > Create Credit
Memos/Refunds
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Refund to a customer when a customer:
◦ Returns merchandise after payment
◦ Requests a discount or refund on paid merchandise
or services
◦ Overpays their Invoice and requests a refund
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If the customer paid with cash or check, issue
a refund check
If the customer paid with a credit card, credit
the customer’s credit card.
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In Credit memo, click
Use Credit To and
choose Give Refund
Issue a Refund
window
◦ Information filled in
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Creates refund check
in the checking
account and records
the Credit Memo
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Write off
uncollectible
invoices with
a credit memo
◦ Bad Debt Item
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Bad Debt is an
Other Charge
Item linked to
Bad Debts
expense
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Customer
statements
provide a
summary of the
activity for an
accounts
receivable
customer during
the period you
specify
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The Sales Tax
Item calculates
the tax for the
sale
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Additional classification for calculating and
reporting sales tax
Assigned to each product or service item, as
well as to each customer.
Sales Tax Codes serve two purposes
◦ Indicate whether a specific product or service is
taxable or non-taxable
◦ Categorize revenue based on the reason you
charged or didn’t charge sales tax.
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To set up a Sales Tax
Code
◦ From the Lists menu
select Sales Tax Code
List
◦ Select New from the
Sales Tax Code menu at
the bottom of the list
◦ Enter three character
Sales Tax code and
description
◦ Each Sales Tax Code has
a taxable or non-taxable
status
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Add Sales Tax
Code to
Customer in the
Additional
Information tab
Default Tax
Code on sales
forms
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QuickBooks automatically calculates and
tracks sales tax on each sale.
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Shows sales to
each customer
over a given
date range
Select the
Reports menu,
then select
Sales, and then
select Sales by
Customer
Summary
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Shows sales of
each Item over
a given date
range
Select the
Reports menu,
then select
Sales, and then
select Sales by
Item Summary
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



Process customer returns and credits
Write off customer invoices (record bad
debts)
Create customer statements
Collect sales tax
Create sales reports