Credits not showing on cash basis P&L

This year I started using Quicken for Business and matching entries in my old Quickbooks so I can compare.
I applied an outstanding credit memo for a customer. When I print a cash basis P&L the credits I applied are not showing like they are in Quickbooks. They DO show if I print the accrual version.
How do I get Quicken to match?
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Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @jbrown08322,

    So, you know what the problem is - you went from an accrual basis to cash basis. The only way to get Quicken to match is to either - enter a pseudo payment from the client this year (and post the other side to an accrual account or miscellaneous non-deductible expense), or just reverse the income entry in Quicken.

    Frankx

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
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  • jbrown08322
    jbrown08322 Member ✭✭
    Frankx,
    No, both the Quickbooks and Quicken are setup as cash basis. What I can't figure out is why the now applied credit memo amount in Quicken does not show up as income on the P&L like it does in Quickbooks.
  • jbrown08322
    jbrown08322 Member ✭✭
    I think I’ve determined my problem. Created a test company and entered some customers/invoices. If I pay off a invoice with an overpayment, and leave it as a credit, then later use that credit to pay another invoice the P&L is correct. BUT if I create a Credit Memo and then apply it to an invoice the applied amount does NOT show on the P&L.
    So either this is a bug, or I’m creating the Credit Memo incorrectly. I created it using the same “Consulting Income (business)" category as my invoices. Did I need to create some kind of adjustment category?
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @jbrown08322

    I am not exactly sure what you've done when you said "If I pay off a invoice with an overpayment, and leave it as a credit...".

    When a customer makes an overpayment of an invoice (e.g. they simply paid too much) - that doesn't affect your income.  You still owe them the overpayment which you can either let it ride for continuing customers who you sell to frequently, or you can refund the overpayment - either way it still doesn't affect your income.

    If you issue a credit memo - that is a reduction in the amount that customer has to pay, but it also is a reduction in your income. Like I said I am not sure what you were doing but I doubt this is a bug in Quicken.  More likely it has to do with how you made the entries or it is a timing issue that is exacerbated by the timing of your move to Quicken.

    Frankx

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • jbrown08322
    jbrown08322 Member ✭✭
    The point I was trying to make was when I used the Credit Memo to pay a new invoice, the income was not being recorded on the P&L. Seems that it should.

    At any rate I got around the problem by deleting the Credit Memo, letting it delete any payments made with it. Then added a “New Customer Payment” for the amount (to a dummy bank account so as to not mess up my real one). Now I’m able to pay off outstanding invoices using the “Apply existing credits” option and see it reflected in the P&L.
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