Hi there, vespinoza-gcinca.
I can tell why credit is showing up on the customer's account. This happens when the amount received is more than the invoice.
Let me provide the right step to remove the credit. You need to record the refund using Check or Expense in QuickBooks, not the refund receipt. This offsets the customer's open credit, overpayment or prepayment. Don't forget to delete the refund receipt later.
Here's how to record the refund to the customer.
- Click + New.
- Select Expense, Add expense or Check.
- 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 to.
- On the first line of the Category column, select Accounts Receivable.
- Enter how much you want to refund in the Amount field.
- Fill out the other fields as you see fit, then click Save and close.
The steps of recording refunds will vary depending on whether you use QuickBooks Online or QuickBooks Payments. You can browse these articles to learn the different ways of processing a refund.
I've modified the steps from my previous post @vespinoza-gcinca. Please check again and get back to me if you have follow-up questions. Thank you and have a great day!
