Store credit - syncing to QBO - credit memo / payment method

OK - maybe I am making this too complicated, but tell me if this is not a catch-22 situation here:

  1. I want to credit out past invoices that a customer would not pay or to just credit out a past invoice that should not be paid

  2. I see “sync store credit” in the QB sync settings in Syncro - I can enable it and choose a QB item to sync for “store credit gifts” - I assume I can create a bad debt item in QBO and choose that item?

  3. But to enable store credit, I must create a “store credit” payment method in syncro which then must be linked to a QBO payment method because ALL payment methods in Syncro must be linked to a payment method in QBO or it won’t sync…what payment method do I choose in QBO to have it be a “credit memo”??

I just linked Store Credit to a payment method called “Store Credit”. There’s not really much info on this page about the setup and I’m not sure this has always been an option, because I remember seeing multiple times that it doesn’t sync credits. The pictures do not show the payment method either. QuickBooks Online Setup and Help

On the QBD setup page it just says " * If you enable Sync Store Credit to QuickBooks , you will then need to type the proper items in the QuickBooks Item for Store Credit gifts and QuickBooks Item for new or unmapped Products in a Customer Purchase fields.". Again, not helpful on the actual setup part lol.

Typically “gifts” are other current liability in QB, but you can create a product called “Bad Debt” and link it to your Bad Debt account like we’ve done.

Hoping someone can chime in here, I haven’t enabled the store credit sync because I didn’t know it existed. I didn’t see any announcement about it. From what it looks like, when you create a Store Credit, it creates the credit memo based off the product you linked, not from the payment method. Payment methods in QBO are not sophisticated, not linked to any account, you only have the option of marking as a credit card or not.

Yeah, when we tried it a while back - it actually sent a payment over with the payment method we selected, and NOT a credit memo. So - this makes it look like we took a payment in. We would likely have to do some funky journal entries to move the payment into a bad debt account I would think…?

Hi @brad.otto

I believe you’d likely would follow these: