Record a customer refund in QuickBooks Sole Trader

To record a cash refund after your customer paid their invoice, you can enter an expense on the Transactions page to balance your books.

1. Go to Transactions.
2. Select New transaction.
3. Select the Expense radio button, and enter the same amount as the paid invoice.
4. In the Category ▼ dropdown, select Sales.
5. Complete the rest of the fields, then select Save.

This sales transaction cancels out the paid invoice from an accounting perspective.

To record a refund made from a bank account, wait until the transaction comes in from your QuickBooks linked bank account.

1. Go to Transactions.
2. Find the refund bank transaction that you sent to your customer.
3. Review the transaction to make sure the Category is Sales. Update if needed.