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Intuit

Record a customer refund

Learn how to refund a customer in QuickBooks Online.

If you're unsure how to record a refund, don't worry. Here's how to return your customer's money, depending on various refund scenarios.

Refund for goods or services that didn’t satisfy the customer

Sometimes, a customer pays for an item but wants to return it for full or partial refund. In this case, use Refund Receipt to record the reimbursement via cash or cheque.

The Refund Receipt doesn't affect the customer's balance (accounts receivable), only the bank balance.

Note: To avoid a double refund, make sure a credit memo has not been entered yet.

  1. Select Create (+).
  2. Under Customers, choose Refund Receipt.
  3. Select the same product/service you are refunding and enter the exact amount of the refund.
  4. Fill out the necessary fields, then select Save and close.

Refund a customer for open credit, prepayment, or overpayment

You can record a refund to your customer using Cheque or Expense if:

  • They want to redeem their open credits.
  • They made a prepayment for an order, but cancel it before receiving the goods or services.
  • They want to be reimbursed for an accidental overpayment.

Using Cheque or Expense to record the refund reduces your bank's balance, and offsets the customer's open credit, overpayment, or prepayment.