Refund your customer for an item or service in QuickBooks Online

If you have QuickBooks Payments, you can refund your customer for returned items or services with a refund receipt. This also updates your sales and accounting records.

For a refund involving a lost package or the Accounts Receivable account, you create a credit memo instead.

To issue a refund directly in QuickBooks, check out QuickBooks Payments rates and apply.

For a better experience, open this article in QuickBooks Online. Launch side-by-side view

The QuickBooks design has been updated! If this video doesn't match what you see in QuickBooks, use the in-app Search bar to navigate to the page you need.

Get personalized help categorizing transactions with Full-Service Bookkeeping.

What you’ll need

• The customer's preferred payment method.
• An entry for the product or service item being refunded.

Create a refund receipt

Use a refund receipt to document and process a refund to a customer.

Note: To avoid a double refund, don’t enter a credit memo for an item or service refund.

Follow this link to complete the steps in product

1. Select + Create.
2. Select Refund receipt or Give refund.
3. From the Customer ▼ dropdown menu, select the customer you want to refund.
4. From the Payment method ▼ dropdown menu, select how you want to refund the customer.
5. From the Refund From ▼ dropdown menu, select the bank account where you deposited the customer's payment.
6. Add all products or services the customer returned to the Product/Service column.
7. Enter the quantity, rate, and amount for each product or service.
8. Optional: Select Print or preview, then select Print or preview again, to print a copy for your records.
9. Select Save and close.

Results

After you save the refund receipt, QuickBooks automatically updates your accounting. The refund is recorded in the bank account you chose. Your product and service item quantities are changed to show the return.

Related links

• Refund your customer for a paid invoice in QuickBooks Online
• Record a refund for an overpayment or credit in QuickBooks Online
• Void or refund customer payments in QuickBooks Online.