Mistakes happen, and running your business with QuickBooks Online helps you account for all kinds of unlikely situations. If your customer has sent you money by mistake and you need to record a refund, QBO makes this process simple. I'll explain how you can record the refund in a few easy steps.
If you need to return your customer's money, don't worry. Here's how to record a refund based on various scenarios: Record a customer refund in QuickBooks Online. This ensures your books are up-to-date.
I'd recommend referring to the sub-section in the article titled "Refund a customer's overpayment or credit", as it sounds like this method would best suit your needs.
Here's an overview of that section:
Step 1: Record the refund for your customer
Step 2: Link the refund to the customer's credit or overpayment
That's all there is to it. If you have any additional questions, please don't hesitate to reach out to an expert on our tech support team.
Does your suggestion of how to "enter the refund for overpayment by e-tsf" actually process a refund through our Bank Account to the Customer's Bank Account or just through QBO?
Also, does it create a physical entry, like a receipt that we can send to the customer?
Being able to track your refunds and credits is a great way to provide yourself and your clients with a record of them. I'd be happy to go over refund receipts and credit memos with you.
QuickBooks Online makes it easy to keep track of your clients credits and refunds by making a receipt for each. When you issue a refund through QuickBooks Online it doesn't send the money directly to your client's bank account. It would just track that a refund was made and you would need to either e-transfer the funds to your client or provide them with a cheque. As for refund receipts, once a refund is processed in QuickBooks using the methods showing above, a refund receipt will be created that you can send to your clients for their own records. The same goes for credit memos if your customer would rather use the overpayment against future purchases.
If you have any questions let us know and we'd be happy to help.