Refunds

Hello, tracy1016.

To zero out your customer's balance and Accounts Receivables, let's create an expense transaction here's how: 

1. Click the (+ New).
2. Go to Expense.
3. Choose the name of the customer.
4. Select the same bank account used in processing the refund.
5. In the Category Details section, choose Accounts Receivables in the Category column.
6. Enter the complete expense details.
7. Tap Save and Close.  

For additional insights about processing customer's refund, you may check out these articles: 

• Record a customer refund
• How to refund a deposit and close an invoice 

As always, feel free to open the topics from this link in case you need guides while working with QuickBooks in the future. 

Have other questions in mind? Place them below, and I'll get back to you as soon as I can. Stay safe!

What do I use as payment method since it was refunded through QuickBooks?

Thank you! What do I put in the payment method box since it was a refund through QuickBooks?

Hi there, Tracy.

You can use the same bank account that was used when the actual refund was processed. 

I'd also like to share these articles for additional guidance and reference when processing refunds to your customers:

• Void or Refund Customer Payments in QuickBooks Online
• Void or Refund Transactions in QuickBooks Payments

The Community is always here to help if you need anything else. Just reply below or post new questions and we'll be glad to answer them for you.

Well, your way did make 75.00 owed on our customers account, but there is still no invoice for me to send them to pay since the previous invoice shows it's been paid. Is there a way to attach the 75.00 expense to the paid invoice so that I can send it out for payment?

Thanks!

Tracy

Hi there, @tracy1016.

The option to link the expense to the paid invoice is unavailable in QuickBooks Online (QBO). Invoice payments are income transactions that fall under operating revenue which include items such as sales, discounts, and returns. 

On the other hand, an expense is the cost of an asset used by a company in its operations to produce revenues. In other words, it is the use of assets to create sales. 

To properly record the refund, you can also review this article: How to refund a customer in QBO.

In addition, you can reach out to your accountant for further guidance in handling your transactions in QuickBooks. This way, we can ensure that your books are accurate.

Moreover, there are several financial reports you can run to track your sales income in QuickBooks. They will show you helpful insights on the things you buy and sell, and the status of your inventory.

Should you have any follow-up questions or concerns, don't hesitate to post again here in the Community or leave a comment on this thread. Take care and have a good one.