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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 November 03, 2018

Accepted Solutions
QuickBooks Team

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

15 REPLIES 15
QuickBooks Team

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

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

Level 1

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? 

QuickBooks Team

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.

 

Level 1

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

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

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

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.

Level 1

Refund Receipt

Hi there, what about a refund receipt for a payment made by Paypal?  Do I need to refund the customer outside of Quickbooks using my Paypal account, or is the customer's payment automatically refunded by QBO?

QuickBooks Team

Refund Receipt

Thanks for joining on this thread, @BethanySarah.


You’ll have to create a refund to your customer through PayPal. After recording the transaction, open QBO and then enter a refund receipt.


This is to mirror what happened to the actual entry. Here’s how:

 

  1. Tap the New menu in the upper left and choose Refund Receipt under Customers.
  2. Enter a name in the Customer drop-down and then input the appropriate date in the Refund Receipt date field.
  3. Fill in the Service Date column and type in the item in the Product/Service field.
  4. Make sure to enter the amount and then click Save and close to record the entry.


For more details, check out the Record a customer refund article. It provides different steps on how to reimburse your client.


Let me know if you have any clarifications or questions. I’ll be right here to answer them for you. Have a great rest of the day.

Level 1

Refund Receipt

Great, so I'll refund on PayPal and create the matching entry in QBO. Thanks!

Level 2

Refund Receipt

Showing a negative balance for a customer and saying "that's the way it's supposed to be" is really confusing.

 

When you invoice a customer, the balance is +500

When the customer pays, 500 is subtracted and the balance is 0.

Now the money is refunded and the balance is -500.

 

I'm not an accountant but it seems as if we're missing half a transaction. Just like the invoice raised the balance and the payment decreased it, the Refund Receipt lowers the balance and it seems like there should be some other kind of transaction to raise it again so the balance is 0. Because the balance IS zero!!!!! The customer neither owes or is owed money.

 

Showing the balance as negative is confusing, and gives the impression a further action must be taken.

 

QuickBooks Team

Refund Receipt

I know how you want to reflect the correct balance in your customer's profile and I'm here to add some details with the refund receipt transaction, Yo_Be_Low.

 

Refund Receipt will create both the credit against sales and logs a transaction showing the money being returned to the customer.

 

If you're referring to the balance of your customer on the customer profile, once the balance is zero and you've created a refund receipt, it should show 0.00 in the Open and Overdue information.

 

However, if you're referring to the amount under the Total column, it will always show a negative amount since your previous customer balance is zero (0), thus -500 will show as a credit. Please see the screenshot below:

refund receipt credit.png

 

For reference, you might want to read these helpful articles so you can gather a lot of information and insights related to QuickBooks Online. 

 

Reach out to us if you're referring to something else. Remember, we want to make sure that we'll be able to further assist you by all means. Hope you have a great day!

Level 1

Refund Receipt

Good morning,

 

I am trying to create a Refund Receipt to a customer after a credit memo has already been issued.  No matter what "Refund Receipt" no. I am putting in the field or whether or not I let QBO determine one for me, I keep getting the same error message.  "You must specify a different number. This number has already been used."  

 

Please help.

Thank you!

 

 

QuickBooks Team

Refund Receipt

Let's find out why you're getting such an error in QuickBooks Online, kymmonson.

 

 A refund receipt is used if you need to refund for goods or services, or overpayment. While credit memo is used to reduce a customer's current balance. To avoid a double refund, you'll have to make sure that you enter either of the two refunds mentioned.

 

Once done, double-check if you're still getting the same error. If so, we can perform some steps to fix the issue. Your browser may have full of frequently accessed page resources that cause some unusual responses. To isolate this, try logging into your QuickBooks Online (QBO) account using a private browser (incognito).

  • Press Ctrl Shift (Google Chrome).
  • Ctrl Shift (Firefox).
  • Control Option (Safari)

If it works, return to your default browser and perform a clear cache. Every so often the cache becomes overwhelmed with older data which can potentially cause viewing and performance issues. Clearing it will refresh the system, and you'll be able to work with a clean slate. However, if the issue persists, try using other supported browsers.

 

However, if you're still getting the same error, I recommend contacting our support team to investigate this further. They have the tools to securely pull up your account. Here's how to reach them:

  1. Go to Help.
  2. Select Contact Us.
  3. Enter your concern in the What can we help you with? field.
  4. Click Continue.
  5. Choose a channel where you want to connect with our specialists.

You may want to add and match bank transactions with what you've already entered in QuickBooks.

 

Please know that I'm only a few clicks away if you have any other refund issues and concerns. I'm always here to help. Enjoy the rest of the day and stay safe!