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Join nowI've been stuck on this one for a week. Using QBO, we created an invoice for a customer for $3000. The customer was supposed to pay $1500 using merchant services, but accidentally paid the full $3000. We then wrote her a check for $1500, and collected a $1500 check from her at the end of the project. I tried created a Refund Receipt for $1500, but it still shows a zero balance for her. I need to figure out a way balance this out so that I can match her final payment check to the invoice.
Solved! Go to Solution.
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:
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!
I can help you with recording a refund, @mhughes2481.
You can create a credit memo to record a customer refund.
Here's how:
You can check the following article for more information about recording a refund based on various scenarios to ensure your books are up-to-date: Record a customer refund in QuickBooks Online.
If you have customers with open balances, refer to the following article on what to do next: Manage outstanding balances for customers and vendors in QuickBooks Online.
Let me know if you need further help recording a customer refund. I'm always here to help. Have a wonderful day!
Thank you. I've tried creating a credit memo and then there's nothing for me to match the transaction to for the check I wrote to the customer. I tried a refund receipt and still nothing shows up in the list of transactions to match it to.
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:
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!
Thank you, that was the solution!
Thanks for getting back to us, mhughes2481.
We're delighted to hear that the steps mentioned above by my colleague were able to help you in recording the refund in QuickBooks Online (QBO). Please know that you can always rely on the Community if you have further QuickBooks-related concerns. We're always available anytime to assist you.
Stay safe, and have a great rest of the day!
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