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david224
Level 3

Issuing a refund

Hi Team,

A customer of mine whom I sold her a product and charged her CC decided, to return the product I sold her and asked for refund.

As mentioned, I charged her CC and the money already deposired in my account.

How can I sssue a refund?

Thank you

David

Solved
Best answer April 05, 2021

Best Answers
LieraMarie_A
QuickBooks Team

Issuing a refund

Hello there, @david224. I'm here to help you in refunding your customer's credit card payment.

 

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. Click + New, then Refund receipt.
    Capture.PNG
  2. Select 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. Select Save and close.

 

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

  1. Click + New, then Refund receipt.
  2. Select 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. Select Save and close.

 

You can visit again this link for more details about the process: Void or refund customer payments in QuickBooks Online.

 

Moreover, with refunds or return transactions, you may incur a fee depending on your pricing plan and transaction type. For further details, check out this article: Understand fees for refunds or void transactions.

 

Fill me in should you need further assistance with this refund process. The Community team will always here to help. Have a great day ahead!

View solution in original post

19 Comments 19
LieraMarie_A
QuickBooks Team

Issuing a refund

Hello there, @david224. I'm here to help you in refunding your customer's credit card payment.

 

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. Click + New, then Refund receipt.
    Capture.PNG
  2. Select 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. Select Save and close.

 

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

  1. Click + New, then Refund receipt.
  2. Select 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. Select Save and close.

 

You can visit again this link for more details about the process: Void or refund customer payments in QuickBooks Online.

 

Moreover, with refunds or return transactions, you may incur a fee depending on your pricing plan and transaction type. For further details, check out this article: Understand fees for refunds or void transactions.

 

Fill me in should you need further assistance with this refund process. The Community team will always here to help. Have a great day ahead!

david224
Level 3

Issuing a refund

This is just awsome LiaraMArie,

Very detailed

Well explained 

Clear and easy to follow.

As always - the answers I get form the community are just great.

Thanks a lot.

David

ZackE
Moderator

Issuing a refund

Thanks for following up with the Community, david224.
 

I'm happy to hear LieraMarie_A was able to help with identifying how you can issue refunds to customers.
 

I've additionally included a few detailed resources about working with QuickBooks (QBO) and your Merchant Service Center (MSC):


Please feel more than welcome to send a reply if there's any questions. Have a wonderful day!

partysaver
Level 1

Issuing a refund

By doing a refund receipt, does that only record a refund, or actually process the refund and return it into the client's bank or credit card account?

LieraMarie_A
QuickBooks Team

Issuing a refund

Hi there, @partysaver. I've got the information you're looking for about refunding customer payments.

 

Entering a refund receipt in QuickBooks Online only records the return. If you have a QuickBooks Payments account, you can reverse a transaction. This will process the refund and return it to the client's bank or credit card account.

 

Here's how to fully refund a transaction:

  1. Sign in to your QuickBooks Payments account.
  2. From the Processing Tools drop-down, select Reverse a Transaction.
  3. Fill out the necessary fields and select Search.
  4. Select the transaction(s) you want to refund, then Submit.

 

Follow these instructions to partially refund or credit a transaction

  1. Sign in to your QuickBooks Payments account.
  2. From the Processing Tools drop-down, select Reverse a Transaction.
  3. Fill out the necessary fields and select Search.
  4. Select the transaction you want to refund.
  5. Manually type in the amount you want to refund in the Amount field, then Submit.
  6. A new message will appear. You'll be asked to select Continue to process a full refund. If you'd like to submit a different amount, select Cancel. You'll then be prompted to enter a different refund amount. Select Continue.
  7. A receipt of the transaction will display on the screen. Select E-mail or Print to get a copy of the receipt.

 

We also have an awesome guide about this process: Void or refund transactions in QuickBooks Payments.

 

Moreover, you may incur a fee depending on your pricing plan and transaction type when processing a refund. For further details, check out this article: Understand fees for refunds or void transactions.

 

If you have any further questions about issuing a refund, I'm always here to help you. Have a great day, @partysaver.

bezner6214
Level 1

Issuing a refund

I followed these instruction and the clients account still shows a negative

Candice C
QuickBooks Team

Issuing a refund

Hey there, @bezner6214

 

Thanks for chiming in on this thread. I appreciate you coming here with your concern. 

 

If you've already tried all the steps above, then I recommend contacting our Customer Support Team for further assistance. Here's how: 

 

  1. Go to the Help icon. 
  2. Hit the Contact Us button. 
  3. Give a brief description of the issue and tap Let's talk
  4. Scroll down and choose to Get a callback

 

It's that easy! 

 

Let us know how it goes. We're always here to lend a helping hand. Take care! 

Panachebridalhr
Level 1

Issuing a refund

Hello Everyone:

 

I am following up on our refund status.

 

I respectfully request so information as soon as possible as it has been 2 weeks since the request.

 

AileneA
QuickBooks Team

Issuing a refund

I believe that this is not easier since this involves money and time, Panachebridalhr.  

 

The nature of your concern requires help from our QuickBooks Care Team. This way, they can open your account in a secure environment and review and trace the status of your refund in QuickBooks.

 

Here's how you can reach us: 

 

  1. Go to the Help menu at the upper right.
  2. Select Contact Us.
  3. Enter your concern.
  4. Click Let’s talk.
  5. Choose to Get a callback.
  6. Type in your contact info.
  7. Tap Confirm my call.

 

Please know that the availability of support depends on which type of subscription you're using. You can check out this article for our contact information. Click on the QuickBooks Online drop-down to see the most updated support schedule: Support hours and types.

 

I'm all ears if you do have other questions aside from refund, and I'll help you out. Stay safe!

KylieTippen
Level 1

Issuing a refund

I followed these instructions and it seemed to work, but when I do my deposit, the refund amount isn't on there.  Therefore, my deposit amount isn't correct without that refund amount on there.  How do I fix this?

RCV
QuickBooks Team
QuickBooks Team

Issuing a refund

I'll be sharing details on how depositing your transaction works. Then, to ensure that all entries will show in the Deposit screen, KylieTippen.

 

If you followed the steps provided by my colleague, then there's no need to make deposits. We make deposits for invoice payments and sales receipts. To properly record a refund, you can check out this article for the steps and details: Record a customer refund in QuickBooks Online. From there, you'll how to handle a refund based on various scenarios to ensure your books are up-to-date.

 

Then, we can pull up and customize your Transaction Detail by Account report to see the list of refunds you've given to your customers. Here's how: 

 

  1. Go to Reports.
  2. On the Search address, enter Transaction Detail by Account.
  3. Click Customize.
  4. Select the appropriate report period you wanted to show up on your report.
  5. Under Filter, select Customers and Transaction Type.
  6. On the Customers menu, select All.
  7. For the Transaction Type menu, select Refund.
  8. Press Run report.

 

To learn more about how you can save a report after customizing it this article: How to memorize a report in QuickBooks Online. Additionally, I've also included this reference for a compilation of articles you can use to get a better view of your business's financial status: Financial Report for QuickBooks Online.

 

If you need to record bank deposits in QuickBooks Online (QBO), put the transactions you need to combine into your Undeposited Funds account. Then use the bank deposit feature to combine them: 

 

  1. Click the + New Plus icon. 
  2. Select Bank Deposit.
  3. From the Account dropdown, choose the account you want to put the money into.
  4. Choose the checkbox for each transaction you want to combine.
  5. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
  6. Press Save and close or Save and new.
     

Here's an article you can refer to for more details about recording and making bank deposits in QuickBooks Online. Feel free to visit our Banking page for more insights about managing your bank feeds and reconciling accounts.

 

You can always update us on the result after performing the recommended solutions as I'd like to ensure this is resolved for you. Just leave a comment below and I'll get back to you. Have a great day weekend. 

 

BeaconBooks
Level 1

Issuing a refund

I had a customer who overpaid an invoice by $118.83.  I followed all of the above steps to refund  but the customer's account still shows that he has a $-118.83 balance.

MaryLandT
Moderator

Issuing a refund

I appreciate you following the steps so you can process a refund in QuickBooks, BeaconBooks.

 

Let me provide the right step to clear out the balance showing up on the customer's account.

 

In QuickBooks Online, you need to record the refund using Check or Expense in QuickBooks. This offsets the customer's open credit, overpayment or prepayment. 

 

Here's how to record the refund to the customer.

 

  1. Click + New.
  2. Select Expense, Add expense or Check.
  3. Select the customer you want to refund from the Payee ▼ drop-down.
  4. From the Payment account ▼ drop-down, select the bank account where you deposited the overpayment to.
  5. On the first line of the Category column, select Accounts Receivable.
  6. Enter how much you want to refund in the Amount field.
  7. 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.

 

 

Get back to me if you have follow-up questions about issuing a refund in QuickBooks. I'll be right here to help you.

BeaconBooks
Level 1

Issuing a refund

No, that doesn't work.  The customer still shows a credit on his account of $118.83, whether I do a refund receipt or an expense.  And what do you mean delete the refund receipt?  This payment hits the checking account, so deleting this will cause the bank account to not balance.

Jovychris_A
Moderator

Issuing a refund

Thanks for your prompt response, @BeaconBooks.

 

I understand how much you want to resolve the customer overpayment, and follow all the steps above to refund your client.

 

Normally, following the steps recommended by my colleagues will help resolve customer refunds. Specifically, when you follow the steps shared by @MaryLandT to record the refund for your customer as an expense or check.

 

In addition to the steps, you will have to use the Receive payment feature to link the refund to the customer's overpayment written in this article: Record a customer refund in QuickBooks Online.

 

If it continuously shows customer credit on his account, I recommend contacting our Customer Support Team for further assistance. Here's how: 

 

  1. Go to the Help icon. 
  2. Hit the Contact Us button. 
  3. Share a brief description of the issue and tap Let's talk
  4. Scroll down and choose to Get a callback

 

If you have other QuickBooks-related concerns, please don't hesitate to get back here. We're always here to help. Keep well!

mzibelman79
Level 1

Issuing a refund

How loong does it take usually for the customer to see the refund on their credit card?

JaeAnnC
QuickBooks Team

Issuing a refund

Thanks for joining in on this conversation, @mzibelman79.

 

I can see that you've posted to another thread with a similar concern, and one of my colleagues already shared information to answer your question.

 

To see her response, you may go to this link: https://quickbooks.intuit.com/learn-support/en-us/payments/re-how-long-does-it-take-normally-for-a-r...

 

Keep in touch if you have other queries regarding refunds. We're always available to assist you. Take care, and have a great day!

morgannec
Level 1

Issuing a refund

My quikbooks does not even give me the option to do a refund receipt? I pay for the highest subscription in quikbooks. 

ChristineJoieR
QuickBooks Team

Issuing a refund

I'm here to help you, @morgannec.

 

I recognize you are using the QuickBooks Online Advanced version.

 

Before we start sharing for possible resolution, may I ask a screenshot for the error you've encountered in QuickBooks Online. This way, I'd be able to identify further and provide remedies to the issue.

 

I'm looking forward to see you again here in the Community. I will wait for your reply.

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