Accidental Refund

Hello, ftpeters. 

Thank you for reaching out to the Community. You can create a Check, so it will show you got deducted in your bank account, and then under check number, input the credit card to know that refund was processed through your CC, or you can add notes on the memo.  

Also the account should be under AR to show the customer balance in QuickBooks.  

To learn more the steps and process, please refer to this article: Create and record checks in QuickBooks Online.  

Additionally, I'm adding this article to further guide you in managing your vendor and customer transactions using QBO: QuickBooks Help Articles. It includes topics about account management, banking, and expenses, to name a few. You can click the + More topics button to view other selections.

Keep me posted if there's anything else you need by commenting below. I'll be around to help you. Take care!

Hi AileneA,

Thanks so much for your response.

My follow-up question is if we post this check to AR wouldn't that create a credit for the customer?  We gave them money that they should pay back to us so we want their customer record to show that they owe us rather than having a credit.

Thanks again for your help.

Hit there, @ftpeters. I'd be happy to share some information about the process for getting a refund from your customer in QuickBooks Online (QBO).

The Account Receivable is the account that you have to use on the check you are going to send if you expect to get paid. The process given by my colleague is to ensure that your customer will be able to have a basis on the amount they've owed to you and record it properly in your books. It will not create a credit for your customer.

To know more details about Accounts payable, you can check out our QuickBooks Blog page: What are accounts receivable?

Moreover, I've got an article for you to learn more about managing your business's cash flow: Statement of cash flows: What it is & how to read it. It contains ways how to increase cash collections through QBO.

I'll be around if you have other questions. Feel free to let me know in the comment section below. Take care always!