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Level 1

How do I issue customer cashback (as opposed to a refund) after the customer has paid?

 
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Best answer September 26, 2020

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QuickBooks Team

How do I issue customer cashback (as opposed to a refund) after the customer has paid?

Thanks for getting back to this thread, @powerandenergy.

 

If the cashback is based on spending as part of business promotion, then it is a rebate or discount on your expenses. It is not an income transaction, instead, it's an expense.

 

Therefore, we can record this as an expense transaction in QuickBooks Online (QBO). Let me show you how:

 

  1. Click the +New icon and select Expense.
  2. Select the name of the customer in the Payee drop-down list.
  3. In the Category column, click + Add new.
  4. Create an expense account to record your cashback. You can reach to your accountant to make sure you're using the correct Account Type and Detail Type.
  5. Fill out the rest of the field and select Save and close.

 

Additionally, you can run the Transaction List by Customer report in QBO. This will show you the list of transactions (income and expenses) grouped by customer. Just go to Reports and look for the Transaction List by Customer report.

 

I'm always here to help if you have any other concerns or questions. Just tag my name in the comment section and I'll get back to you as soon as I can. Have a great weekend.

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6 Comments
Content Leader

How do I issue customer cashback (as opposed to a refund) after the customer has paid?

Welcome to the Community, powerandenergy.

 

I want to make sure you're able to record a cash refund to your customer in QuickBooks Online. I'd be glad to show you how to get this done.

 

Since your customer made a cash payment, the refund of this money can be entered by creating a Refund Receipt. These steps will walk you through the process:

 

1. Click the +New button.

2. Choose Refund Receipt.

3. Select the Customer ▼ dropdown, then select the customer you want to refund.

4. Click the Refund From ▼ dropdown, then select the bank you deposited the payment for the invoice too.

5. Add the products or services the customer returned in the Product or service column.

6. Complete the other necessary info, then choose Save and close.

 

This article provides a detailed outline of how to refund your customer based on different scenarios: Record a customer refund in QuickBooks Online

 

That will do it! Pleas don't hesitate to reach back out if you need assistance with anything else.

Level 1

How do I issue customer cashback (as opposed to a refund) after the customer has paid?

Hi MorganB,

 

Thanks for the detailed reply, however the customer didn't pay in cash and I'm not refunding them for a return of products, I want to award cashback due as part of a business promotion. This is defined and allowable in UK VAT legislation, but I'm not sure how to account for it in QuickBooks?

 

Any ideas?

QuickBooks Team

How do I issue customer cashback (as opposed to a refund) after the customer has paid?

Thanks for getting back to this thread, @powerandenergy.

 

If the cashback is based on spending as part of business promotion, then it is a rebate or discount on your expenses. It is not an income transaction, instead, it's an expense.

 

Therefore, we can record this as an expense transaction in QuickBooks Online (QBO). Let me show you how:

 

  1. Click the +New icon and select Expense.
  2. Select the name of the customer in the Payee drop-down list.
  3. In the Category column, click + Add new.
  4. Create an expense account to record your cashback. You can reach to your accountant to make sure you're using the correct Account Type and Detail Type.
  5. Fill out the rest of the field and select Save and close.

 

Additionally, you can run the Transaction List by Customer report in QBO. This will show you the list of transactions (income and expenses) grouped by customer. Just go to Reports and look for the Transaction List by Customer report.

 

I'm always here to help if you have any other concerns or questions. Just tag my name in the comment section and I'll get back to you as soon as I can. Have a great weekend.

View solution in original post

Level 1

How do I issue customer cashback (as opposed to a refund) after the customer has paid?

 
Level 1

How do I issue customer cashback (as opposed to a refund) after the customer has paid?

i need to refund a customer who has overpaid on there account 

Moderator

How do I issue customer cashback (as opposed to a refund) after the customer has paid?

Thanks for joining this conversation, @cyndithompson.

 

In QuickBooks Online (QBO), processing a refund to a customer is pretty quick and easy! You can do it using a Check or Expense. This will reduce your bank's balance and offsets the customer's overpayment.

 

Here's how:

 

  1. In QBO, go to the + New option at the top left to create Check or Expense
  2. In the Payee drop-down, select the customer's name and the bank you deposited the overpayment in the Payment/Bank account drop-down.
  3. Select an Accounts Receivable in the Category column, then enter the amount.
  4. Enter the other necessary information, then hit Save and close to complete. 

 

Once done, you can now link the refund to the customer's overpayment. I highly suggest checking out this article and proceed to Step 2 for further guidance on how to do it: Record a customer refund in QuickBooks Online.

 

You can also run the Transaction List by Customer report to see the list of transactions of your customers. Refer to this article for more information: Run reports in QuickBooks Online.

 

Please know that I'm only a post away if you have any other questions or concerns. I'll be here to help. Have a wonderful day!

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