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Refund your customer for an item or service in QuickBooks Online

by Intuit• Updated a day ago

You can refund your customer for returned items or services with a refund receipt. This also updates your sales and accounting records.

For a refund involving a lost package or the Accounts Receivable account, you create a credit note instead.

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What you’ll need

  • The customer's preferred payment method.
  • An entry for the product or service item being refunded.

Create a refund receipt

Use a refund receipt to document and process a refund to a customer.

Note: To avoid a double refund, don’t enter a credit note for an item or service refund.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Select + New or + Create.
  3. Select Refund receipt.
  4. From the Customer â–Ľ dropdown, select the customer you want to refund.
  5. From the Payment method â–Ľ dropdown, select how you want to refund the customer.
  6. From the Refund From â–Ľ dropdown, select the bank account where you deposited the customer's payment.
  7. From the Amounts are â–Ľ dropdown, select the applicable Tax option.
  8. Add all products or services that the customer returned, in the Product/Service column.
  9. Enter the Service Date, SKU, Description, Quantity, Rate, Amount, Tax, and Class fields accordingly for each product or service.
  10. Optional: Select Print or Preview, then select Print or Preview again, to print a copy for your records.
  11. Select Save and close.

Results

After you save the refund receipt, QuickBooks automatically updates your accounting. The refund is recorded in the bank account you chose. Your product and service item quantities are changed to show the return.

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