Clearing out customer credit
I need to clear out a customer credit. I can no longer refund this customer. What are the steps involved please?
Forum Discussion
Hi smm,
Clearing unreturnable credits, these are recorded based on how you want them to show up in your ledger. The easiest way is to use the same concept as writing off bad debts, but in negative values. You’ll need an account set up to track the credit you’re clearing out, and just pop the refund against that account. That’ll wipe the credit for that customer and make sure it’s logged somewhere you can keep tabs on that amount. Also, you can ask for advice from an accountant if you want to make sure it's recorded the best way possible. Hope that helps!
Regards,
Genreve
Thanks Genreve, I'm not sure I understand what you mean. Can you elaborate please?
Hi smm,
My apologies for the confusion. What we meant is, you can record the refund in a dedicated account specifically used for clearing credits. Essentially, create an account for clearing credits and then record the refund in that account. The provided help page above has detailed information about this.
I hope this helps!
Regards,
Earl
