How do I record a tenant refund?

Diane18 · ‎April 28, 2021

We own a house that has 2 rental units. We sold the house and both tenants are moving out before using up their last month's rent. I have to issue their rent back to them. Their last month's rent was issued in a Sales Receipt and I posted it to the "Rent" Item. The "Rent" Item is linked to a rental Income account. Should I issue another Sales Receipt with a negative amount posted to the same Item? Then write a cheque to apply to the Sales Receipt?

Tammy_H · ‎April 28, 2021

Hi Diane18,

It's always nice to hear from you. QuickBooks Desktop supplies you with all the tools you need to keep accurate records. This includes recording refunds. I've got your back, and I'll guide you through making the entry.

To create a refund, follow these simple steps:

Create a credit memo. Go to the Customers menu, and select Create Credit Memos/Refunds.
From the Customer: Job dropdown menu, choose the customer you're creating the refund for.
Enter the details for the transaction.
Click Use credit to give refund.
The cheque will automatically be filled in. Confirm the details. Click Ok.
Click Save and Close.

If you'd like to review the other options that are available when using credit memos, check out this article: Give your customer a credit or refund in QuickBooks Desktop.

You know you can find me here if you have any other questions. Have a great day!

View solution in original post

Tammy_H · ‎April 28, 2021

Hi Diane18,

It's always nice to hear from you. QuickBooks Desktop supplies you with all the tools you need to keep accurate records. This includes recording refunds. I've got your back, and I'll guide you through making the entry.

To create a refund, follow these simple steps:

Create a credit memo. Go to the Customers menu, and select Create Credit Memos/Refunds.
From the Customer: Job dropdown menu, choose the customer you're creating the refund for.
Enter the details for the transaction.
Click Use credit to give refund.
The cheque will automatically be filled in. Confirm the details. Click Ok.
Click Save and Close.

If you'd like to review the other options that are available when using credit memos, check out this article: Give your customer a credit or refund in QuickBooks Desktop.

You know you can find me here if you have any other questions. Have a great day!

Diane18 · ‎April 28, 2021

Thanks Tammy_H

I had a brain lapse lol - I knew that, but never thought of it. Thank you for your help.

Tammy_H · ‎April 28, 2021

Anytime Diane18, that's why I'm here. Glad I could help. All the best!

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How do I record a tenant refund?