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.

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?

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

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!