Issued refund Check to Customer - how do i link it to the customer to clear the credit balance?

Hi there,

There are different ways to record a customer refund in QuickBooks Online (QBO).

In your situation, you should have entered just a refund receipt instead of a credit memo to avoid a double refund.. That said, you need to delete the check and credit memo created to ensure your books are up-to-date.

To delete the credit memo, here's how:

1. In the left menu, click Sales.
2. Go to the All sales tab.
3. Locate Credit Memo.
4. In the Action column, choose Delete.
5. Click Yes to confirm.

For more scenarios in refunding your customer, here's an article you can check: Record a customer refund in QuickBooks Online.

If you need to customize your sales form in the future, check out this article: Customize invoices, estimates, and sales receipts in QuickBooks Online.

Additionally, I'm attaching our Community link if you need help adding, organizing, and sending invoices: Invoices and payments.

If there's anything else you need help with, feel free to leave a comment below. I'm more than happy to answer it for you. Have a great day.

HI MirriamM,

Do I select my bank for the account on the Refund Receipt?  My check register will not reflect this check that has been issued to this customer if deleted. The customer paid with a check and so, a refund check was actually issued to him. How can I note this in QB?

Hello, 587106411929391.

I'll take it from here and shed some light on recording the customer refund in QuickBooks. 

Yes, we would want to select a bank account under the Refund from drop-down menu on the Refund Receipt form. Doing this would post the refund transaction to your check register. 

You also mentioned something about the receipt not reflecting under their account. 

Have you selected the customer's profile under the Customer drop-down menu? Perhaps this is the reason why it's not showing up under the profile. Make sure to select their profile from the menu. 

I would like to go over your original post again to ensure your entries are correct and accurate. Creating a Refund receipt and a Credit memo will double-book your refund, as mentioned by MirriamM. 

Since you only issued a check to the customer, we would only want to enter a Refund Receipt. QuickBooks automatically counts the form as a "check" type.

So, when you look at their profile, the Refund Receipt is reflected as "Refund" instead of "Check."

If you haven't already done it yet, let's first delete the credit memo entry from your books. I'll just reiterate the steps above for convenience (this achieves the same results):

1. Click the + New button, then select Credit memo (we aren't creating anything; we're just going to find it). 
2. Click the clock icon beside the Credit Memo header.
3. Look for the credit memo you created, then select it. 
4. Click the More button, then select Delete. 

We don't need to record anything at this point. But, if you want to print the Refund Receipt as a check, let's open it again, then click the Print later option. Save the receipt afterward. 

To print it, go to the + New button, then select Print checks. Select the bank where you recorded the refund, then check the Refund entry. Add a check number, then click Preview and print. 

When you're ready to reconcile your payments and expenses in QuickBooks, take a look at this guide if you need help: Reconcile an account in QuickBooks Online.

You're more than welcome to drop by again if you have concerns about managing customer payments and refunds. I'll also help you out if you have questions about other entries or when running reports. Always here to help. 

I deleted the Credit Memo, although I did it under the customer tab. (I believe I am using a different QB version than yours - the radio button under "new'' only opens a new credit memo.)  I thought the check issued would show on the customer's account, but it does not. I know the check was issued, but it would be helpful for others in our organization to be able to view under the customer account. 

Thank you for taking the time to follow every step provided by my colleagues. I'll conform with others and share my thoughts regarding this matter.

You'll want to double-check if you've created the correct transaction. If you enter a check, it won't reflect on the customer's account. However, if you record a refund receipt, it'll naturally show under your customer's account. You can use refund receipts if a customer asks for a refund for an item or service. 

Here's how to refund a credit card payment for a sales receipt:

1. Go to + New, then Refund receipt.
2. Choose the customer you want to refund from the Customer dropdown.
3. Enter the details in the fields using the same info from the original sale. To credit back their credit card, in Payment method, select Credit card. To credit back their bank account, in Payment method, select Bank.
4. In Refund from, select which payment method and account you wish to refund the customer from.
5. Save and close.

If it's a paid invoice you need to refund, follow these steps: 

1. On the + New, then Refund receipt.
2. Choose the customer you want to refund from the Customer dropdown.
3. Enter the details in the fields using the info from the original sale.
4. Choose which payment method and account you wish to refund the customer from.
5. Save and close.

You can return to this page for more information on the process: Void or refund customer payments in QuickBooks Online.

Furthermore, depending on your pricing plan and transaction type, you may be charged a fee for refunds or returns. For more information, see this article: Understand fees for refunds or void transactions.

For additional QuickBooks-related concerns, don't hesitate to post them here in the Community. We're always available and willing to lend a hand to your queries. Have a great day ahead.

Hi,

I created a refund receipt for a security deposit. I issued it to the customer, wrote a check, and categorized it to the proper bank account in the refund receipt. It has cleared the bank. How do I match it with my banking transactions? 

Hello there, @booksSeptic. Let me walk you through matching your bank transactions in QuickBooks Online (QBO).

To prevent any duplicate entries in your account, follow these steps to match your bank transactions with the ones you've manually entered in QBO:

1. Go to Transactions and select Bank Transactions.
2. Select your account and go to the For Review tab.
3. Click the transaction, then Match.
4. Set the date period and tick the checkbox of the transaction to match. 
5. Select Match.

For more details, please refer to this article: Match online bank transactions in QuickBooks Online.

Additionally, we recommend conducting monthly reconciliations to ensure your transactions match your bank statements.

Keep in touch if you have other questions about matching your bank transactions in QBO. The Community is more than willing to lend you a hand. Stay safe, and have a great day ahead.

Thank you for the thorough explanation that includes screen shots! I had to refund a customer for a returned part & this is SOOOOOO much easier than the Credit Memo-Expense-Check process that the QBO Help system recommends!

Hi there, Teesa66.

On behalf of my colleagues, you're welcome. The QuickBooks Community will always be around to lend you a hand any time you need guidance. I'll be around if you need further assistance with any QuickBooks-related tasks.
 
I hope you have a pleasant day ahead. Take care.