What is a Delayed Credit in QuickBooks Online & How to Create it?

Delayed credits are just like credit memos or vouchers that are generated at the time of providing a refund to a customer. Users can utilize these on the invoices while purchasing other items. These credits are also useful in a variety of situations. Therefore, you should know in depth what is a delayed credit in QuickBooks Online. When you issue this credit to a customer, it won’t affect your Sales Report. This would eventually help your QuickBooks Online account from being affected. Hence, it is essential that you learn the proper methods of creating and using a delayed credit in your accounting program. Additionally, these credits can even be removed when you enter any information incorrectly.

What is a Delayed Credit in QuickBooks?

A delayed credit is one of the types of credit memos in QuickBooks or its Online version. At times, a customer may ask you to provide a refund for the product that you had sold to him/her. Rather than giving back the amount, you can create a delayed credit. This credit can later be utilized by a customer when they buy another item. This will balance the amount and also not affect your Sales Report. These credits in the software can also be availed anytime in the future during a purchase. Hence, understanding what is delayed credit in QuickBooks Online is vital.

Requirement for Creating a Delayed Credit in QuickBooks

In certain circumstances, a customer may unknowingly pay an extra amount than the one that was originally printed on the bill in QuickBooks. Hence, when such instances happen, businesses need to pay that extra value back to the customer. Here, creating delayed credit in QuickBooks can be of great use. Through this addition, businesses can allow customers to redeem their amounts in the future.

The other reasons listed below will let you understand the further need for creating a delayed credit in QuickBooks or the online version of the software:

• An open invoice is usually made in relation to a delayed credit.
• These credits can be given to the customers as amounts through which they can make purchases later. 
• When a customer returns any product that has already been purchased, a delayed credit can be made.

How to Create a Delayed Credit in QuickBooks Online?

Users can efficiently make a delayed credit in QuickBooks Online with the assistance of the Delayed Credit button. To make use of this tab, you have to move via the plus sign first. Once the option Delayed Credit becomes visible, you will have to choose it. After you do so, a list of fields will come up which are required to be filled in carefully for creating a delayed credit properly.

• In the window of “QuickBooks Online”, locate the “+” sign.
• The option that says “Delayed Credit” has to be chosen.
• Once the “Delayed Credit” windows are displayed, mention the appropriate details in the fields given:
  • “Customer Name”
  • “Date”
  • “Amount”
  • “Product/Service Items”
  • “Quantities”

• Finally, select the “Save and Close” button for creating new delayed credit. 

Note: The procedure mentioned above can be used again when creating this credit for some other customer.

How can I Apply the Delayed Credits in QuickBooks Online to a Customer?

You can apply for delayed credits in your QuickBooks Online software with the help of the Invoice button. As this tab keeps a track of the transactions that occur during the sales of the products, applying these credits to a customer through this section can be easier. The Invoice feature can be found by moving via the icon showing plus. You can then move ahead by locating the Customer tab from the available pull-down menu. Then for this customer, the credits can be applied.

The steps provided below will guide you on how to apply delayed credit in QuickBooks Online:

• Navigate to the “QuickBooks Online” program.
• After this, hit the plus symbol.
• Choose the “Invoice” tab in this step.
• Now, you need to click on the drop-down option appearing in the window.
• Here, opt for “Customer”.
• Fill up all the necessary details in the provided fields.
• Navigate to the column of “Delayed Credits”.
• Choose the “Delayed Credit” which you want to apply for a customer.
• After it gets selected, pick the “Add” button. The application of the delayed credit in QuickBooks Online will be moved further.
• In case you are not able to see the credits, the arrow sign beside the “Invoice Balance” tab has to be clicked. You can then apply for the delayed credit on the invoice of your choice.

Tip: If you are unable to find an invoice, then you can move it to the software from another program. Thus, you can import invoices into QuickBooks Online and then perform this procedure. After this, the credits will be applied to those invoices.

• Tap on “Save and Send”. Once you press it, the invoice will be sent to the customer you had picked.

How can Delayed Credits be Deleted in QuickBooks Online?

There can be times when you enter the wrong details while creating a delayed credit in QuickBooks Online and notice the same later. Thus, to remove it, you need to make way through the section of Delayed Credit. Once you tap on it, the clock icon has to be located and clicked. Doing so will open the form from which the credit you want can be deleted.

• Launch the “QuickBooks Online” homepage .
• Head to the “Delayed Credit” section.
• Then opt for the sign depicting “Clock” for opening the form of “Delayed Credit” which you want to remove.
• Next, you need to click on the option named “More”.
• Hit the “Delete” button now.

The selected value will then be deleted. You can utilize the same steps from 1-5 for deleting any other credit relating to another customer.

Summary
After learning what is a delayed credit in QuickBooks Online, its concept should become clearer. You should now have understood the multiple requirements these credits can fulfill. Once you start using them, your invoices can be balanced. Accounting errors or issues in this balance can additionally be prevented.

FAQs – What is a Delayed Credit in QuickBooks?