Write Off Customer And Vendor Balances In QuickBooks
                     How to Adjust the Credit Balance in QuickBooks 
If you would like to regulate the credit balance during a customer's account, you've got to use a special 
process counting on whether you're increasing or decreasing the credit balance. If you're decreasing the 
credit balance, apply a replacement invoice and receive payment on the invoice for the quantity of the 
adjustment. If you're increasing the credit balance, apply a credit memo to the customer's account. 
 
Decreasing Credit Balance 
1.Choose "Customers" and "Create Invoices" from the QuickBooks menu. Select the customer with the 
credit balance from the list box. 
2.Tap or click the "Item" list box and choose "Add New Item" if you do not have already got an item to 
record credit adjustments. Select "Other Charge" because the type. Type an item name, for instance , 
"Credit Adjustment." Enter an outline within the Description box. Select "Non-Taxable Sales" within the 
Tax Code box. Select an account to use the adjustment like Other Income. Choose "OK." 
3.Tap or click the "Item" list box and choose the credit adjustment item if you've already created one. 
4.Type a description for the adjustment. Enter a quantity of "1." Type the quantity by which you would 
like to decrease the customer's credit balance within the Rate column. Enter a memo at rock bottom on 
the invoice if you would like . Choose "Save & Close." 
5.Select "Customers" and "Receive Payments" from the menu. 
6.Choose the customer whose balance you're adjusting. Enter the quantity of the adjustment, select 
"Cash" because the payment method and sort an outline into the Memo field. 
7.Tap or click the road with the credit adjustment invoice you entered to place a check next thereto . 
Tap or click "Save & Close." 
Increasing Credit Balance 
1.Select "Customers" and "Create Credit Memos/Refunds" from the QuickBooks menu. Select the 
customer with the credit balance from the list box. 
2.Select an item to use when applying the credit. Enter an outline for the adjustment and enter "1" for 
the number . 
3.Type a rate adequate to the quantity by which you would like to extend the customer's credit balance. 
Choose "Save & Close."