August 17, 2022
Every now and again you may find that you need to unapply a credit in QuickBooks. This could be due to any number of reasons, but whatever the situation may be, this can cause problems if you aren’t sure how to do it. The good news is that it’s not too difficult.
In this article, we will explain everything you need to know about how to unapply a credit in QuickBooks Desktop and QuickBooks online in 2022.
The answer is yes and no. You can apply a credit to one invoice, but you can't undo that action. However, you can always add another credit (or debit) to the same invoice later on if this presents any issues.
Let’s look at how to unapply a credit in both QuickBooks Desktop and QuickBooks Online.
You can apply a credit to an invoice by entering its amount as a negative value on the invoice line. For example, say you want to apply $100 of credit to an invoice for delivering widgets. If the total cost of delivering those widgets was $300, you'd enter -$200 in the Credit field on the line for delivering them.
If you want to apply a second $100 credit later on, though, you can't just enter it as another negative number in that same field. Instead, you need to create a new account called something like "Credits" and assign it as a negative value equal to 100 times whatever amount is already entered in that field.
The process for unapplying a credit in QuickBooks online is virtually identical to the same process discussed above for QuickBooks Desktop.
Of course, rather then logging into your QuickBooks Desktop application, you need to navigate to the QuickBooks Online web portal, enter your account information and then proceed with the steps outlined above.
Also, it’s worth noting that with the desktop application you will need to restart the program before your reports and register update, however with QuickBooks Online, you will notice that the credit has been unapplied as soon as you refresh your browser.
If you want to reverse the credit that you have issued, the following steps will guide you:
1. Open your QuickBooks database and click on the Vendor Center icon.
2. Select the vendor who has received a credit and right-click on it.
3. Click on Reversals from the drop-down menu.
4. A new window will open up where you can choose which transaction to reverse or enter a specific one manually
Regardless of the situation, you may find that you sometimes need to unapply a credit that you previously granted in QuickBooks.
If you’ve never done this before it can be a bit confusing, and it isn’t exactly self explanatory, But it’s certainly not something you should be too worried about.
Fortunately, it’s not that hard to do. By following the simple steps outlined above you’ll be able to unapply a credit in QuickBooks whenever you need to, and once you’ve done it a couple of times you’ll be a pro.
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