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VP Smart
Level 1

Customer refund

Hello,

 

I  use Online Quick Books and have this case. We had to make a refund to two customers' deposits. Our customers usually pay deposit in advance before the service is provided. We do not record these payments before the service is completed, after that we raise an invoice and allocate the payments against it. But in this case two customers were given the deposit's money back due to refuse the service. How should I record this in Quick Books?

 

Thanks

Solved
Best answer January 10, 2021

Accepted Solutions
Ryan_M
QuickBooks Team

Customer refund

Hi @VP Smart,

 

I'll share an insight on your customer refunds and how to record them in your QuickBooks Online (QBO) company.

 

You can record invoices for these customers and link those deposits as payment. Set the date when you received those deposits on the Receive payment screen.

 

From here, you can create a Refund receipt transaction.

 

Here's how:

 

  1. Click the + New menu.
  2. Select Refund receipt.
  3. Enter the customer under the Customer drop-down menu.
  4. On the Refund From the drop-down menu, select the bank account where you recorded the deposit. 
  5. Enter the service under the Product or service column.
  6. Hit Save and close.

You can also view this article for other options you can do for customer refunds: Record a customer refund in QuickBooks Online

 

Feel free to post a comment below if you have other questions. I'll get back to you as soon as I can. 

View solution in original post

10 REPLIES 10
Ryan_M
QuickBooks Team

Customer refund

Hi @VP Smart,

 

I'll share an insight on your customer refunds and how to record them in your QuickBooks Online (QBO) company.

 

You can record invoices for these customers and link those deposits as payment. Set the date when you received those deposits on the Receive payment screen.

 

From here, you can create a Refund receipt transaction.

 

Here's how:

 

  1. Click the + New menu.
  2. Select Refund receipt.
  3. Enter the customer under the Customer drop-down menu.
  4. On the Refund From the drop-down menu, select the bank account where you recorded the deposit. 
  5. Enter the service under the Product or service column.
  6. Hit Save and close.

You can also view this article for other options you can do for customer refunds: Record a customer refund in QuickBooks Online

 

Feel free to post a comment below if you have other questions. I'll get back to you as soon as I can. 

View solution in original post

VP Smart
Level 1

Customer refund

Thanks

Agavin1717
Level 1

Customer refund

I’m the customer and services weren’t rendered nor a signed contract agreement. I need full refund. I’ve reached out to company with a business response. Please assist me as I paid they your secured invoice. Thank you

jamespaul
QuickBooks Team

Customer refund

Hello, Agavin1717,

 

I'd like to help you record or handle your refund transaction. 

 

 

Are you referring to the services provided by your supplier? If so, you'll want to create a supplier credit and have it deposited to your bank account (if a refund is already secured). 

 

Here's a step-by-step process:

 

  1. Click the + New icon, then select Supplier credit.
  2. Enter the details of the refund. 
  3. Once done, click Save and close

 

sup1.PNG

 

Next, you'll want to create a bank deposit to get the funds back to your account:

 

  1. Click the + New icon again, then choose Bank deposit.
  2. Select the bank under Account.
  3. For the RECEIVED FROM column, select the supplier.
  4. Under ACCOUNT, choose the Creditors account (to zero-out the supplier's balance). 
  5. Enter the same amount as the supplier credit.
  6. Add other information such as reference number, memo, etc..
  7. Once done, click Save and close.

 

sup2.PNG

 

Finally, close out the supplier credit: 

 

  1. Click the + New icon again, then select Expense
  2. Select the supplier under Payee
  3. Add the deposit and the supplier credit.
  4. Enter other important information before closing it out.
  5. Once done, click Save and close

 

sup3.PNG

 

You can find more details about this process here: How do I handle supplier credits and refunds?.

 

Though, are you referring to your subscription? You'll want to cancel it for the refund. Though, I want to make it up to you regarding the unrendered services. Do you have any issues in QuickBooks Online? Or what help do you need so I can assist you? 

 

However if you still want to proceed with the cancellation, you can do it through the Account and settings page:

 

  1. Go to the Gear icon and choose Account and Settings.
  2. Click the Billing & Subscription tab,
  3. In the QuickBooks section, click Cancel subscription.

 

If you need to follow-up with the refund, I recommend contacting our support. They can pull up your billing details and process it for you. Here's how to contact them:

 

  1. Go to the Help menu, then hit Contact Us.
  2. In the box, enter something like "Follow up with the refund."
  3. Click Let’s talk.
  4. Choose how you want to reach us. 

 

I suggest checking out this article if you need more help with the process: Cancel your QuickBooks Online subscription.

 

If you need help like running reports, recording transactions or handling your information after cancelling, you can check out our articles. Browse them in our QuickBooks Online articles list

 

I'd be glad to offer a helping hand again if you have concerns recording transactions. I also like to address other questions you might have for your QuickBooks Online account. 

Di10
Level 1

Customer refund

HI 

I have completed a refund receipt for an overpayment, which is showing on account.  But the customer credit balance is still showing.  How do I link/apply to have account at zero

John C
QuickBooks Team

Customer refund

Hi Di10 The refund receipt function is used where you're refunding all or part of an invoice, not for over-payments. Was the over-payment a separate amount or was it one amount inclusive of the amount of the invoice?

Di10
Level 1

Customer refund

Hi

A customer overpaid an invoice and we refunded this amount with a cheque to them.

Amount would be inclusive of VAT

John C
QuickBooks Team

Customer refund

Hi Di10 If the over-payment was not paid separately then we recommend that you delete the refund receipt. The invoice payment should be for the full amount that you received, if it's not please delete the payment > receive payment on the invoice and enter the full amount in the amount received field (make sure that the date of the payment matches the date that your account was credited)> this will create a credit/un-applied payment on the customers account (show as an open amount)> then create an expense or a cheque from within New+ > please ensure that you enter the date that the amount shows as being debited from your account and enter the debtors/accounts receivable account in the category column. At this point the open amount will be zero on the customers account however you will have to link the credit/un-applied payment and the expense/cheque > select New + receive payment > enter the customers name > ensure that the cheque/expense and the un-applied payment/credit are ticked > save and close.

stephfalc
Level 1

Customer refund

What is the issue if the customer credit cards are declining?

Charies_M
Moderator

Customer refund

Hi there, stephfalc.

 

Declined credit cards are often caused by authorization problems or missing information. You'll want to review the following to avoid your credit cards being declined.

 

I'm adding this article as your reference to learn more about why customer's credit cards are being declined. (This article is made for the US version but can be applied to the UK version as well): Why is my customer's card declined?. This also provides steps on how to prevent your credit cards from being declined.

 

To review and verify the reason for declined payments, I'd recommend reaching out to our Merchant Services team. They can provide ways on how to make sure you'll get notified once there is a declined credit card payment. Here's how to get in touch with them: QuickBooks Merchant Services.

 

Feel free to ask if you have more questions. I'll keep my notifications open. Stay safe, and have a good one!

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