Syncing Credit Memos to QuickBooks Online

When a Zoey Credit Memo is created to Add Credit to Account, it will sync to the customer in QuickBooks Online as a Credit Memo.

The credit will be applied automatically to open Invoices, or remain available for future use.

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This article covers Credit Memos that add credit to the Account. To return money to the customer, see Syncing Refunds to QuickBooks Online.

Syncing the Credit Memo

The Credit Memo is sent to QuickBooks immediatley upon creation.

The Credit Memo can be created for specific items or a general amount. It does not need to be linked to an Order or Invoices to sync to QuickBooks.

Adding credit to the Account does not refund the customer's payment method or reverse an existing Payment.

Applying Credit to Invoices

If an eligible Invoice is selected on the Credit Memo, the credit will be applied to that Invoice first.

When no eligible Invoice is selected, the credit will be applied to the oldest eligible open Invoice. This is referred to as FIFO, or first in, first out.

The credit being applied is also recorded in QuickBooks against the corresponding Invoice.

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QuickBooks uses a Payment to apply the Credit Memo to the Invoice. This Payment has a total of $0.00 because credit is being applied, not a new payment being collected.

Partial Credit

The Credit Memo does not need to cover the full Invoice balance. For example, a $25 credit applied to a $100 Invoice will leave $75 due on the Invoice.

One Credit Memo can also be applied across multiple Invoices, including Invoices from different Orders. Any unused credit remains available on the Account.

Credit Available for Future Invoices

If there are no eligible open Invoices, the credit remains available.

When a new eligible Invoice is created, the available credit can be applied to it and synced to QuickBooks.

Credit Memo Sync Settings

Item-Based

The QuickBooks Credit Memo will list the same Items included in the Zoey Credit Memo. Use the existing QuickBooks item mapping settings to control the details saved to the Credit Memo in QuickBooks.

Amount-Based

An Amount Credit Memo uses the service item configured for Credit Memo amounts in the Zoey QuickBooks integration.

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Open the Zoey QuickBooks Integration and navigate to Order Settings > Credit Memo Settings.

Create an item in QuickBooks that will be a placeholder for the custom Credit Memo amount and put that item's exact name (case-sensetive) in Item Name for Amount-Type Credit Memo.

That item must exist in QuickBooks. If it is not configured, an amount-based Credit Memo will fail to sync.

Credit & Refund

When Credit & Refund is selected, the refund will sync as a QuickBooks Refund Receipt instead of a QuickBooks Credit Memo.

Through Credit & Refund, the original Payment remains applied and the Invoice remains paid. A Credit Memo and a Refund Transaction are created in Zoey. See Syncing Refunds to QuickBooks Online.

You can create a Payment Refund to reverse payments and unapply them from the invoice.

Taxes, Shipping, and Discounts

Taxes, shipping, and discounts use the existing integration mappings. Review those mappings in the QuickBooks Online Integration Settings.

Credit Memo Numbers

When Use Zoey IDs for QuickBooks Creditmemo ID is set to Yes, the same Zoey Credit Memo number will be used as the document number in QuickBooks.

If that number already exists, a suffix such as -1 or -2 will be added.

When this option is disabled, QuickBooks assigns its own number automatically.

Canceling an Applied Credit Memo

A fully applied Credit Memo cannot be canceled. Zoey will reject the cancellation and leave the Zoey and QuickBooks records unchanged.

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Automatically reversing the credit application and removing the Credit Memo from QuickBooks is not supported by this update.
The Credit Memo will need to be canceled in each system.