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Anonymous
Not applicable

Refund Receipt

A customer was issued an invoice, which they paid.

 

We are now cancelling the invoice, and refunding the customer by BACS.

 

I believe using Refund Receipt is the suggested way of doing this in Quickbooks Online. A Refund Receipt will create both the credit against sales (including accounting for any VAT), plus it logs a transaction showing the money being returned to the customer (to match with the bank account).

 

When I look at sales reports, all looks fine there.

 

When I look at the individual customer's record, the balance shows as £0, but the total now has:

 

1. Original Invoice £180

2. Original Payment -£180

3. Refund -£180

Total = -£180.

 

I originally thought I would be creating a credit memo for £-180, then a payment going out of £180 and the totals of all the transactions would be £0.

 

Then, I read that Refund Receipt was the way to do this (refund a paid invoice), but the totals are -£180 and it's making me wonder if I've done something wrong. Should the total be £0?

 

Thanks

 

James

 

Solved
Best answer 11-03-2018

Accepted Solutions
QuickBooks Team

Re: Refund Receipt

Glad to see you here in the Community, JamesRead.

 

You've done a great job with recording the refund receipt. Thanks for providing us the screenshot since it gives us a clearer picture of what happened to your account.


Let me clear things up for you why the customer’s Transaction List page is showing a total of £180.00. The Total column will show all the transactions associated with the customer.


The total changes every time you add or deduct the amount. You’ll need to go to the Balance column to see the running data of the customer.

That's it. The information will help get you moving today.

Be sure to let me know if you have additional questions about QBO. I'll be glad to answer them for you. Wishing you the best.

View solution in original post

8 REPLIES 8
QuickBooks Team

Re: Refund Receipt

Glad to see you here in the Community, JamesRead.

 

You've done a great job with recording the refund receipt. Thanks for providing us the screenshot since it gives us a clearer picture of what happened to your account.


Let me clear things up for you why the customer’s Transaction List page is showing a total of £180.00. The Total column will show all the transactions associated with the customer.


The total changes every time you add or deduct the amount. You’ll need to go to the Balance column to see the running data of the customer.

That's it. The information will help get you moving today.

Be sure to let me know if you have additional questions about QBO. I'll be glad to answer them for you. Wishing you the best.

View solution in original post

Anonymous
Not applicable

Re: Refund Receipt

Hi Rasa Lila. 

 

As I said, in my head I expected both the customer balance and the total to be £0.

 

Many thanks for your explanation and confirming it’s correct.

 

Kind regards

 

James

Not applicable

Re: Refund Receipt

I have a nuance question based on this thread.  I had a similar situation where a customer paid the first (half) of their invoice and then cancelled their booking (=my service).  I returned their payment but in issuing the refund receipt I am unsure how to allocate the various amounts to the product/service (which are essentially 1/2 of what the invoice shows).  Do I do a refund receipt for the entire invoice or for just the amount they paid? 

Highlighted
QuickBooks Team

Re: Refund Receipt


Hi there, kmcgoverness.


Thanks for joining on this thread. Allow me to chime in and help you allocate the remaining amounts of the item.


In situations like this, you will only process a refund for the first half of the invoice since they already canceled the service. To account for the remaining amount, create a credit note to keep your record in order.


Here’s how:

 

  1. Go to the Plus icon at the top, select Credit Note.
  2. Select the customer’s name.
  3. Enter the total amount of the invoice, including the deposit in the Amount field.
  4. Click on Save and close.  

For future reference, I'm adding a link with detailed information when to apply a credit note or delayed credit.

 

These steps should point you in the right direction.


Let me know if you have additional questions about QBO. Please know I’m just a comment away for help. Have a good one.

 

Experienced Member

Re: Refund Receipt

I had a client pay an invoice via bank transfer, and then ask for a refund.  I created the refund receipt, and sent it to the client.  Everything is balancing in quickbooks fine.  My question is, does this bank transfer the money back?  Or do I need to physically send the check to the client?  I know bank transfers take a few days to process, and I don't want to double pay if it is just taking a few days to process through.

 

 

thank you!

Amy

Moderator

Re: Refund Receipt

Thanks for joining this conversation, Amyjameson.

 

If you have a Merchant account, then yes! The refund will automatically be transferred or sent to your client. If you don't, although everything is balancing in QuickBooks Online (QBO), it's just for recording purposes. You have to create a physical check and manually send it.

 

Just in case, I'll be sharing these articles for additional resources:

 

 

Please let me know if you have any other issues or concerns. I want to make sure everything is taken care of for you. Have a great rest of the day!

Anonymous
Not applicable

Re: Refund Receipt

Can I just add...

 

If this is a new customer (and the amount is substantial) then double check with your bank that the original payment to you actually cleared (ie wasn’t a cheque that could bounce after you have refunded the funds) before you refund any funds.

 

 

QuickBooks Team

Re: Refund Receipt

Hi James

 

The transactions you have created are correct, the total column is a total of the transactions within that column. The figures that you should be concerned about is the balance  and the open and overdue amounts which should all show as zero.