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MJL Displays
Level 1

Reconciling a credit note

I have been paid the full amount of an invoice via my payment gateway - Stripe e.g.£100.00. Subsequent to the invoice payment we had to issue a credit as some of the items were out of stock e.g. £20.00. This credit note was raised in the customer's account and emailed to them. Their card was reimbursed the £20.00 from Stripe who then took £20.00 from our bank account. So now we have transferred the £20.00 bank payment to our Stripe account in Quickbooks, but don't know how to reconcile this with the credit note on the customer's account.

QuickBooks Team

Reconciling a credit note

Hi @MJL Displays,


I'll take care of this query for you about recording a customer refund in QuickBooks Online (QBO).


Since you already reimbursed the £20 credit note to your customer, you can record it as a refund instead. 


Here's how:

  1. Go to the + New menu.
  2. Select Expense, or Cheque.
  3. Choose the customer in question from the Payee drop-down menu. 
  4. On the Payment account drop-down menu, pick the bank account where you deposited the overpayment. 
  5. Enter Debtors for the Category column. 
  6. Type in the reimbursed amount in the Amount field.

The next thing you need to do is link the refund to the customer's credit note or overpayment. 


Let me show you how:

  1. Click the + New menu. 
  2. Select Receive payment.
  3. Choose the same customer used in the refund transaction above.
  4. Scroll down in the Credits section, then tick the box for the credit or overpayment.
  5. Ensure the payment is the same as the open balance. If so, press Save and close.

See this article for additional information about this refund process: Record a customer refund or supplier refund in QuickBooks Online. It includes the steps on how you can record a refund coming from your supplier. 


When you decide to proceed with reconciliation, view this article for the steps: Reconcile an account in QuickBooks Online


Feel free to tag me in a comment below if you have other questions about refunds in QBO. I'll be glad to help you out.

MJL Displays
Level 1

Reconciling a credit note

Thanks for the information. I followed your instructions - I had some problems with the first section as it kept coming up with an error until I selected no Vat.


However, while the customer now has a zero balance my Stripe account is still showing the value of the credit I transferred from the bank account where the money was taken from.

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