Thanks for getting back to us, @mhughes2481. I appreciate the steps, and I'm here to help share information to record the refund of your customer.
As mentioned in your previous post, the balance of your customer still shows zero when you create the refund receipt since it will not affect the Accounts Receivable. Meanwhile, creating a credit memo will only affect the income and AR account means it will not show a money-out transaction from your bank.
That said, I'd suggest deleting the refund receipt and credit memo created so it will not double or make negative transactions. Then, you can edit the check you've created and ensure that the affected account is Accounts Receivable (AR). That way, we have the money out (refund) from the bank, so QBO will recognize that the customer still owes the remaining 1500.
Here's how:
- In the left menu, click Expenses.
- Go to the Expenses tab and find the check created.
- Click the View/Edit button.
- Modify the first line of the Category column, and select Accounts Receivable.
- Verify the details, then select Save and Close.
For more details on handling overpayment, see this article and proceed to Step 2: Refund a customer's overpayment or credit.
Once done, go back to the banking menu and match your transactions. For more details on how to categorize your transactions and personalize your sales forms, see these articles:
Please let me know how it goes by clicking the Reply button below. I'm always here to help if you have any other concerns. Have a great day!
