How to unapply a credit in QuickBooks Desktop. Welcome to our comprehensive guide on unapplying credits in QuickBooks Desktop. In this article, we will walk you through the step-by-step process of removing a vendor credit or credit memo that has been previously applied to an invoice or bill. Whether you’re a seasoned QuickBooks user or just getting started, this guide will provide you with all the information you need to effectively manage your credits in QuickBooks Desktop.
Understanding Credits in QuickBooks Desktop
Before we delve into the process of unapplying credits, let’s first understand what credits are in QuickBooks Desktop. Credits can be in the form of vendor credits or credit memos that are applied to invoices or bills to offset the balance owed. However, there may be instances where you need to remove a credit that has been applied incorrectly or no longer needed. That’s where unapplying credits becomes necessary.
Steps to Unapply a Credit in QuickBooks Desktop
1. Access the Previously Applied Credits Window
To begin unapplying a credit, open QuickBooks Desktop and navigate to the “Transaction List” where the credit was applied. Locate the invoice or bill that contains the applied credit.
2. Identify the Applied Credit
Double-click on the invoice or bill to open it. Look for the applied credit and select it to highlight.
3. Unapply the Credit
Once the applied credit is selected, navigate to the menu options and click on “Remove Credit” or a similar option depending on your QuickBooks version. You may be prompted to confirm the action, so ensure you select “Yes” to proceed.
4. Save and Close
After unapplying the credit, click on the “Save” button to save the changes. Your invoice or bill will now reflect the removed credit, and the balance will be adjusted accordingly.
Additional Tips
Displaying Transaction History
If you need to review the transaction history of a particular invoice or bill, you can do so by selecting the transaction and clicking on “Transaction History” or a similar option. This will provide you with a detailed overview of all applied credits and payments.
Using the Credit Radio Button
When applying or unapplying credits in QuickBooks Desktop, make sure to select the appropriate radio button to indicate whether it is a customer or vendor credit. This ensures accuracy in your accounting records.
Prompted Changes in Transactions
In some cases, unapplying a credit may prompt changes in other related transactions. Be sure to review any prompted changes and confirm if they are accurate before saving the transaction.
Conclusion
Unapplying a credit in QuickBooks Desktop is a straightforward process that allows you to manage your accounting records accurately. By following the steps outlined in this guide, you can effectively remove credits from invoices or bills with ease. Remember to double-check your transactions and save any changes made.
