Memo

Managing memos, credits, and custom forms in QuickBooks Online

This guide covers how to handle memo fields, manage vendor and customer credits, and customize invoice forms for specific payment details.

Troubleshooting the Memo field

If you are unable to type spaces in the Memo field of transactions (such as Invoices or Journal Entries), this is often related to browser compatibility.

• Switch your browser: We recommend using Google Chrome or Mozilla Firefox for the best experience with QuickBooks Online. If you are currently using a different browser, switching to Chrome or Firefox usually resolves this issue.

Using memos for job tracking

While you can use the Memo field to add notes (such as the date a job was closed), relying solely on text notes is not as powerful as using the built-in job status features.

To properly manage jobs from previous years or track open jobs:

1. Go to the Sales or Expenses menu and select the relevant customer or project.
2. Edit the Job and change the Job Status field to Closed.
3. If you no longer need the estimate associated with the job, you can mark it as Inactive.

Using the Job Status field provides better reporting and organization than storing dates in the memo field.

Handling customer payments sent directly to vendors

If a customer pays you specifically to pay a vendor on their behalf, you can track this using a clearing account. This ensures the customer receives credit and the vendor bill is paid.

1. Create a Clearing Account:
   • Go to the Settings gear icon and select Chart of Accounts.
   • Select New to create a bank account named “Clearing Account.”
2. Receive the Customer Payment:
   • Select + New and choose Receive Payment (or Bank Deposit).
   • Enter the customer and the amount.
   • Deposit the funds into the Clearing Account.
3. Pay the Vendor:
   • Select + New and choose Pay Bills.
   • Select the bill(s) for the vendor.
   • In the “Payment Account” field, select the Clearing Account.
   • Save the transaction.

The Clearing Account balance should return to zero, the vendor bill will show as paid, and the customer’s balance will reflect the payment.

Applying payments to vendor credits

If a vendor sends you a check to pay off a credit memo they issued you (or a credit balance you have), follow these steps:

1. Deposit the Check:
   • Select + New and choose Bank Deposit.
   • Select the account where the check was deposited.
   • In the “Add funds to this deposit” section:
     • Select the Account type as Accounts Payable.
     • Select the Vendor name.
     • Enter the payment amount.
   • Select Save and close.
2. Apply the Credit:
   • Go to the Settings gear icon and select Pay Bills.
   • Filter the list by the specific vendor.
   • You will see the deposit you just entered listed as a bill.
   • Select the deposit and the open credit memo.
   • The Credit Applied field should automatically update to offset the bill.
   • Select Pay Selected Bills and then Done.

Transferring credits between customers

QuickBooks Online does not allow you to directly apply a credit memo from one customer to another customer’s invoice. To move a credit from one customer to another, you must use a Journal Entry.

• Create a Journal Entry:
  • Select + New and choose Journal Entry.
  • On the first line, select Accounts Receivable and the customer with the credit. Enter the credit amount in the Credit column.
  • On the second line, select Accounts Receivable and the customer who needs the credit. Enter the amount in the Debit column.
  • Save the entry.

Note: After creating the journal entry, you will need to link the credit to the original customer’s open credit and the debit to the receiving customer’s invoice (via Receive Payment) to clear the open balances.

Customizing invoice forms for bank details

If you need to display different bank details on different invoices, you can create custom form styles.

1. Go to the Settings gear icon and select Custom Form Styles.
2. Select New Style and choose Invoice.
3. Customize the footer of the invoice to include the specific bank details for this style.
4. Name the style so you can identify it easily (e.g., “Bank A Invoices”).
5. Repeat this process for each set of bank details you need.

When creating an invoice, simply select the appropriate Custom Form Style from the dropdown menu at the bottom right to display the correct bank information.