Fixing an incorrect invoice, credit charge and refund

[overmyhead]

I invoiced and processed a credit card payment for a customer. But the invoice #15482 had one line item incorrect.  In order to keep everything straight, I issued a full refund.  I was hoping to correct the invoice and charge again. 

But the refund credited to a new receipt number #15484. So now the invoice is still listed as paid. And there is a separate refund transaction. 

What's the best way to correct this?  Either I want to show that invoice 15482 is not paid and was refunded  OR I want to correct that invoice and charge for the correct amount. What are the best steps to fix this? Thank you. 

[MirriamM]

Hello, overmyhead,

Let me help share information about fixing incorrect invoice, credit charge and refund.

You can create an Expense Transaction to re-link payment of the invoice to have it reopen. Then, use the Accounts Receivable (A/R) account. Once done, delete the refund receipt you've made.

To delete refund receipt, here's what you'll need to do:

1. Open the Refund Receipt transaction.
2. Click More button at the bottom.
3. Select Delete, then click Yes.

By doing the steps above, your Invoice is now open in which you can edit the correct line item.

If you have further questions, please feel free to reach back out. I'd be happy to help. Have a great day!

[overmyhead]

Thanks for your reply. I thought I followed up right away but it looks like it didn't post. If I delete the refund receipt, what is the impact to the actual credit card refund? We process our payments (and presumably refunds) directly in QB. Thanks. 

[Rasa-LilaM]

Hi there again, overmyhead.

Thanks for getting back to us and sharing the result of the solution provided by my colleague. Let’s try some new steps to straighten out your sales records.

After creating a refund receipt, you'll have to make a journal entry. The refund receipt will move the funds to the customer’s card again and the journal entry places a balance back in accounts receivable to track the refunded amount.

Here’s how:

1. Click on Plus icon at the top, then select Journal Entry.
2. On the first line, select Accounts Receivable (A/R).
3. Enter the amount refunded in the Debits column and the customer’s name in the Name column.
4. On the second line, select the Income amount used for the item on the Refund Receipt, and then enter the transaction amount in the Credits column.
5. Click on Save.

In regard to the specific account to use, it’d be best to contact your accountant first. They can provide recommendations for which one to use to track the refund receipt.

If you have additional questions, post a comment below. I’ll be right here to answer them. Have a good one.