If you need to adjust the credit balance in a customer's account, you have to use a different process depending on whether you're increasing or decreasing the credit balance. If you're decreasing the credit balance, apply a new invoice and receive payment on the invoice for the amount of the adjustment. If you're increasing the credit balance, apply a credit memo to the customer's account.
Decreasing Credit Balance
Choose "Customers" and "Create Invoices" from the QuickBooks menu. Select the customer with the credit balance from the list box.
Tap or click the "Item" list box and choose "Add New Item" if you don't already have an item to record credit adjustments. Select "Other Charge" as the type. Type an item name, for example, "Credit Adjustment." Enter a description in the Description box. Select "Non-Taxable Sales" in the Tax Code box. Select an account to apply the adjustment such as Other Income. Choose "OK."
Tap or click the "Item" list box and choose the credit adjustment item if you've already created one.
Type a description for the adjustment. Enter a quantity of "1." Type the amount by which you want to decrease the customer's credit balance in the Rate column. Enter a memo at the bottom on the invoice if you wish. Choose "Save & Close."
Select "Customers" and "Receive Payments" from the menu.
Choose the customer whose balance you're adjusting. Enter the amount of the adjustment, select "Cash" as the payment method and type a description into the Memo field.
Tap or click the line with the credit adjustment invoice you entered to put a check mark next to it. Tap or click "Save & Close."
Increasing Credit Balance
Select "Customers" and "Create Credit Memos/Refunds" from the QuickBooks menu. Select the customer with the credit balance from the list box.
Select an item to use when applying the credit. Enter a description for the adjustment and enter "1" for the quantity.
Type a rate equal to the amount by which you want to increase the customer's credit balance. Choose "Save & Close."