2013

Process customer returns and credits Write off customer invoices (record bad

debts) Create customer statements Collect sales tax Create sales reports

Use Credit Memos in following situations:◦ Cancel an order that has been invoiced◦ Returned merchandise◦ Credit-on-account for a customer◦ Refunding a customer

Customers menu > Create Credit Memos/Refunds

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

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.

In Credit memo, click Use Credit To and choose Give Refund

Issue a Refund window◦ Information filled in

Creates refund check in the checking account and records the Credit Memo

Write off uncollectible invoices with a credit memo ◦ Bad Debt Item

Bad Debt is an Other Charge Item linked to Bad Debts expense

Customer statements provide a summary of the activity for an accounts receivable customer during the period you specify

The Sales Tax Item calculates the tax for the sale

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.

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

Add Sales Tax Code to Customer in the Additional Information tab

Default Tax Code on sales forms

QuickBooks automatically calculates and tracks sales tax on each sale.

Shows sales to each customer over a given date range

Select the Reports menu, then select Sales, and then select Sales by Customer Summary

Shows sales of each Item over a given date range

Select the Reports menu, then select Sales, and then select Sales by Item Summary

Process customer returns and credits Write off customer invoices (record bad

debts) Create customer statements Collect sales tax Create sales reports