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mohadeeb
Level 1

customer refunds accounting

Hello,

 

I run a dental practice and occasionally we have to do small refunds to patients by writing a check.  We do not do any billing through Quickbooks and simply use it to keep track of expenses and accounting reports.  Typically, when a refund is processed it is a different amount from what has been billed to a particular person.  

 

My question is:  How should I categorize a check we write to refund a person?  I would like it to just be removed from the total revenue of the business rather than categorize it as an expense.  I have a read about "refunds income" but I don't really understand that.   

 

My second question is:  How will refunds be reflected on the P&L statement?

 

Thanks! 

2 Comments 2
Mark_R
QuickBooks Team

customer refunds accounting

Recording your customer's refund is my priority, @mohadeeb.

 

When you record refunds through checks, it'll reflect on your Profit and Loss report depending on the account used for refund. However, I suggest seeking help with your accountant. This way, they can guide you on how to properly categorize the refund to be removed from the total revenue.

 

You might want to check out these articles to learn more about running Profit and Loss report and recording customer refund:

 

Don't hesitate to click the Reply button below if you need further assistance with QuickBooks Online. Thanks for coming to the Community, wishing you continued success.

Mark_R
QuickBooks Team

customer refunds accounting

I'm here to ensure everything is alright, @mohadeeb.

 

Were you able to work on recording refunds by checks with your accountant? If you haven't yet, you can find an accountant that is a QuickBooks-certified independent accounting professional through this link: Find-a-ProAdvisor resources. They can provide strategic insights to your businesses.

 

Thanks for coming to the Community, wishing you continued success.

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