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QuickBooks for Nonprofits Tip: How to Apply a Credit for a Reimbursable Expense to an Invoice

by Ruth Perryman 14. March 2010 08:44

Question: I work for a nonprofit company. We have members who pays for supplies and instead of a reimbursement they want it applied to their monthly dues. I have to record so it first of all shows the company is paying for supplies for meeting, second to record the money they spent against AR monthly dues. What do I do? Thank you

Answer:
Using a credit memo might do the trick. Credit memos normally reduce revenue, but the instructions below will leave your dues revenue at the original amount and instead increase your supplies expense.

Go to Lists > Item List and create an item for the reimbursement. Map the item to your supplies expense account.
Go to Customers > Create Credit Memo's/Refund and enter a credit memo for the reimbursable expense using the item created above. You'll get an error message that the item you're using is associated with an expense account. Normally, that's a problem but in this case that's exactly what you want.
After you save the credit memo, you'll get a popup screen asking how you want to apply it. Select Apply to an invoice. Check the invoice you want to apply it to and click Done.

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Ruth Perryman - QuickBooks Specialist Written by Ruth Perryman, CMA, CFE, CFM, MBA, DPA (ABD)

Ruth is the president of The QB Specialists, an Intuit Solutions Provider that has helped thousands of businesses throughout the United States, Canada and even the Caribbean get the most out of QuickBooks since 1996. Ruth has over 20 years of industry experience, including 5 years as a Chief Financial Officer. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and Enterprise.

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