Question

You invoiced your customer for 5 Widgets (inventory parts). Your customer returned 3 of the widgets. What's the best way to handle this transaction in QuickBooks?

Answer 1

To handle this transaction in QuickBooks, issue a credit memo for the returned widgets. QuickBooks will adjust inventory and update the customer's balance automatically.

Step-by-step explanation:

The best way to handle this transaction in QuickBooks is to issue a credit memo for the returned widgets. Here are the steps:

1. Open QuickBooks and go to the Customers menu.
2. Select Create Credit Memos/Refunds.
3. Choose the customer's name from the list.
4. In the Items tab, enter the information for the returned widgets, such as the item name, quantity (-3), and rate.
5. Click Save & Close to complete the transaction.

By doing this, QuickBooks will automatically adjust your inventory and update the customer's balance accordingly. This ensures accurate record-keeping and helps maintain a clear trail of the transaction.