Hello @MKT22191,
A refund created and processed in the bank, such as PayPal, will not be posted into QuickBooks. You'll want to manually enter a refund given to your customer. Let me show you how.
- Go to the +New button.
- Under CUSTOMERS, select Refund Receipt.
- Select the customer and date.
- On the Refund from menu, select your PayPal bank account.
- Choose a product or service.
- Enter the amount to refund.
- Click Save and close.
In addition, here's an article you can read to learn more about how you can enter a refund for your customers: Record a customer refund in QuickBooks Online.
Lastly, I've got you this helpful article in case you're in need to start creating credit memos or delayed credits and the difference between them: Create and apply credit memos or delayed credits in QuickBooks Online.
Stay safe and comment below or post again if you have any other questions. I'll be here to lend a hand.
