Online equivalent of credit memo and credit card refund

RJBreneman · ‎April 05, 2019

In Desktop, I created an invoice and applied a payment - invoice is marked Paid. Then I needed to issue a Credit Memo for the full amount and issued a Credit Card Refund so Credit Memo is marked Refunded. Customer balance is zero.

In QB Online, I created an invoice and applied a payment - invoice status is Paid and payment status is closed. Now I want to do the functional equivalent of what I did in Desktop so the original invoice and payment are kept intact, a credit memo and refund are issued and the Customer balance is zero. How to do this?

JaneD · ‎April 05, 2019

Welcome to the Community, RJBreneman.

I'm here to help mark the credit memo as refunded in QuickBooks Online (QBO).

You should create a check or an expense transaction to offset customer's open credit. To do so, please follow these steps:

Click on the + New button.
Under Vendors, choose Check or Expense.
In the Account column, choose Accounts Receivable.
Enter the credit in the Amount column.
In the Customer column, choose the customer.
Select Save and close.

Then, let's link the check or expense with the credit memo:

Click on the + New button.
Under Customers, choose Receive Payment.
Fill out the following fields:
- Customer
- Date
- Payment Method
- Reference No.
- Deposit To
- Memo (Optional)
Under Outstanding Transactions, select the Check or Expense that you created.
Under Credits, select the unapplied payment.
Make sure Amount Received is zero.
Click on Save and close.

For further guidance, you can also check this article: Record a customer refund.

This should point you in the right direction. If you have additional questions, you can always reach back to me. I'll be around. Have a great weekend.

View solution in original post

RJBreneman · ‎April 08, 2019

JaneD thanks for the response. I was able to follow your instructions and resolve the issue. I had to make one minor adjustment. Under the

let's link the check or expense with the credit memo

5. Under Credits, select the Unapplied Payment.

there was no Unapplied Payment. I checked the unapplied Credit Memo instead and that worked. Everything is paid/closed and their balance is zero. Here is a screenshot of the complete transaction list.

Thanks again!

View solution in original post

JaneD · ‎April 05, 2019

Welcome to the Community, RJBreneman.

I'm here to help mark the credit memo as refunded in QuickBooks Online (QBO).

You should create a check or an expense transaction to offset customer's open credit. To do so, please follow these steps:

Click on the + New button.
Under Vendors, choose Check or Expense.
In the Account column, choose Accounts Receivable.
Enter the credit in the Amount column.
In the Customer column, choose the customer.
Select Save and close.

Then, let's link the check or expense with the credit memo:

Click on the + New button.
Under Customers, choose Receive Payment.
Fill out the following fields:
- Customer
- Date
- Payment Method
- Reference No.
- Deposit To
- Memo (Optional)
Under Outstanding Transactions, select the Check or Expense that you created.
Under Credits, select the unapplied payment.
Make sure Amount Received is zero.
Click on Save and close.

For further guidance, you can also check this article: Record a customer refund.

This should point you in the right direction. If you have additional questions, you can always reach back to me. I'll be around. Have a great weekend.

RJBreneman · ‎April 08, 2019

JaneD thanks for the response. I was able to follow your instructions and resolve the issue. I had to make one minor adjustment. Under the

let's link the check or expense with the credit memo

5. Under Credits, select the Unapplied Payment.

there was no Unapplied Payment. I checked the unapplied Credit Memo instead and that worked. Everything is paid/closed and their balance is zero. Here is a screenshot of the complete transaction list.

Thanks again!

JaneD · ‎April 08, 2019

You're always welcome, RJBreneman.

A credit memo is also called as unapplied payment in QBO. I'm glad I was able to help you with your concern. Well done!

Just in case, I've added an article that will guide you step-by-step on how to do various tasks in QBO. Here's the link for you reference: Getting Started.

That should do it. I'm always around if you have any other concerns. Have a great week ahead!

yana-ringo · ‎December 21, 2020

Hi,

I use your directions for customer refunds, vis this link, https://quickbooks.intuit.com/learn-support/forums/replypage/board-id/other-questions/message-id/168....

The only thing is, that lately, it's not marking the payment as applied. What am I doing wrong? See pic attached for reference.

IamjuViel · ‎December 21, 2020

Let me share additional information @yana-ringo.

You can create a credit memo if your customer wants to use their credits to reduce their current open balance. I can guide you on how this works.

First, let's create a credit memo. Here's how:

Go to + New.
Select Credit memo or Give credit.
From Customer dropdown, select the customer's name.
Enter the credit memo details, such as the date and the amount.
Click Save and close.

Once completed, you can now manually apply the credit memo to the invoice.

Click the + New.
Choose Receive payment or Receive invoice payment.
Select the customer
From the Outstanding Transactions section, select the open invoice you want to apply the credit memo to.
In the Credits section, mark the credit memo you want to apply.
For the open invoice in the Payment column, enter how much of the credit you want to apply.
Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
Fill out the rest of the form, including the Payment date.
Click the Save and Close button.

Also, you can enable the credit memo auto-apply feature. This way, the system will automatically apply any credits your customer has to their open balance. You can read through these articles for more detailed information:

Stay in touch with us here if you have other questions about managing your customer-related transactions. I'm always here to help.

yana-ringo · ‎January 16, 2021

Hi,

This is the procedure I was following but when I go back to the customer's account, the payment is still showing unapplied. I think the software is having some major issues and have been for several weeks.

I have followed every step, and have done and redone it, and it still isn't working right. Is anyone else's software doing the same thing??

Thank you!

ChristieAnn · ‎January 16, 2021

Hi there, yana-ringo.

I appreciate you for following the steps provided by my colleagues above in recording transactions or customer's open balance.

It could be the transaction is not linked to the correct entry. To verify this, you'll need to go to the Sales page and locate the entry. This way, you're able to edit or delete it to correct the inaccurate information.

Here's how:

Click the Sales menu on the left panel.
Go to the Customers section. Then, choose the Transaction List tab.
Review all the customer's entries if all transactions were applied properly.
If not, you can delete the refund or payment created and follow again the steps provide above.
Click Save.

If the issue persists, I suggest contacting our QuickBooks Support Team. They have the tools to pull up your account to further investigate the cause of the issue. Please follow the steps below.

Open your QuickBooks Account.
At the top right, click the Help icon.
Type customer's payment in the Type something field.
Click I still need a human.
Hit Contact us.
You'll be routed into the How can we help? page. Then, select how you want to contact them and fill in the information.

Please refer to this article to see steps on how you can void a sales receipt or invoice paid by credit card or ACH: Void or refund customer payments in QuickBooks Online.

You can always get in touch with us if you have follow-up questions about handling refunds in QuickBooks. We'll help you out.

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Online equivalent of credit memo and credit card refund