Refund a deposit in QuickBooks Online
by Intuit•47• Updated 6 days ago
Learn how to refund a deposit entered in QuickBooks Online or processed with QuickBooks Payments.
If a customer paid a deposit for an invoice but later changed their mind and canceled the transaction, you can return the deposit. You can do this by giving the customer a refund and applying a credit.
The steps vary depending on whether you use QuickBooks Online or QuickBooks Payments to process the deposit.
Not processed with QuickBooks Payments
To refund a deposit in QuickBooks Online, create a credit memo, create a check to refund the deposit, and then record the payment.
Step 1: Create a credit memo
- Select + New.
- Select Credit Memo.
- Select the name of the Customer on your invoice.
- Enter the total of the invoice, including the deposit, in the Amount field.
- Select Save.
Step 2: Create a check to refund the deposit
- Select + New.
- Select Check.
- Select the customer in the Payee field.
- Under Category details, in Category dropdown, select Accounts Receivable.
- Enter the amount of the deposit received in the Amount field.
- Select Save and close.
Step 3: Record a payment
- Select + New.
- Select Receive Payment.
- Select the name of the Customer on your invoice.
- Make sure that the total credits equal the credit memo and invoice listed under Outstanding Transactions.
- Select the checkboxes for the credit memo and invoice in the Outstanding Transactions section.
- Select Save and close.
Processed with QuickBooks Payments
To refund a deposit you processed using QuickBooks Payments, create a credit memo. Then refund the customer's credit card, and then apply the credit memo to the outstanding invoice.
Step 1: Create a credit memo
- Select + New.
- Select Credit Memo.
- Select the name of the Customer on your invoice.
- Verify that the Amount field reflects the open balance of the invoice, less the amount of the deposit.
- Select Save and close.
Step 2: Refund the customer's credit card
- Select + New.
- Select Refund Receipt.
- From the Refund method dropdown list, select the customer's credit card type.
- Complete the fields on the Refund Receipt, using one product/service item.
- Enter the amount of the deposit received in the Amount field.
- Select Save and Close.
Step 3: Apply the credit memo
- Select + New.
- Select Receive Payment.
- Select the name of the Customer on your invoice.
- Verify that the credit memo appears in the Credits section, and that the invoice appears in the Outstanding Transactions section.
- Make sure that the total credits equal the credit memo and invoice listed under Outstanding Transactions.
- Select both of the transactions.
- Select Save and close.
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