Learn how to refund a customer in QuickBooks Online.
If you need to return your customer's money, don't worry. Here's how to record a refund based on various scenarios. This ensures your books are up-to-date.
Refund for goods or services that didn’t satisfy the customer
You can use refund receipts if a customer asks for a refund for an item or service. If they used a credit card, learn how to refund a credit card payment.
Note: To avoid a double refund, make sure you didn't enter a credit memo yet.
- Go to Create ⨁, then select Refund receipt.
- Select the Customer ▼ drop-down, then select the customer you want to refund.
- Select the Refund From ▼ drop-down, then select the bank you deposited the payment for the invoice too.
- Add all products or services the customer returned in the Product or service column.
- Make sure to fill the quantity, rate, amount, tax, and other fields accordingly, then select Save and close.
Refund a customer's overpayment or credit
You can record a refund to your customer using Check or Expense if:
- They want to redeem their open credits.
- They made a prepayment for an order but canceled it before receiving the goods or services.
- They want you to reimburse an accidental overpayment.
Using Check or Expense to record the refund reduces your bank's balance and offsets the customer's open credit, overpayment, or prepayment.
Step 1: Record the refund for your customer
- Go to Create ⨁, then select Check or Expense.
- Select the customer you want to refund from the Payee ▼ drop-down.
- From the Payment account ▼ drop-down, select the bank account where you deposited the overpayment too.
- On the first line of the Category column, select an Accounts Receivable.
- Enter how much you want to refund in the Amount field.
- Fill out the other fields as you see fit, then select Save and close.
Step 2: Link the refund to the customer's credit or overpayment
- Go to Create ⨁, then select Receive payments.
- Select the same customer you used for the check or expense.
- Fill out the other fields as you see fit.
- Under the Outstanding Transaction section, select the checkbox for the Expense or Check you created.
- Make sure the payment is equal to the open balance, then select Save and close.