Refund a paid invoice using QBO

I appreciate the detailed information with regards to how the refund was recorded, cleco1.

The term "Unapplied Cash Payment" is a concept frequently utilized in QuickBooks Online (QBO). It typically arises when there's a payment check that has not been allocated to a vendor bill.

Additional details about this are discussed in these resources: 

• What's Unapplied Cash Payment?
• Unapplied Cash Payment Income on Your Profit and Loss 

Now, let's examine the Expense or Check transaction to verify if the Accounts Receivable account was used. After confirming the use of the Accounts Receivable account, it's important to ensure that the Credit Memo and Expense transaction are correctly linked in the final step.

First, access the Check and proceed to the Category column. If it's assigned to a different account, modify it to "Accounts Receivable A/R."

Second, go back to the Payment transaction and make sure that both Expense and Credit Memo are selected. 

Once these steps are completed, revisit the Profit and Loss report to check if the Unapplied Cash Payment is no longer present.

Feel free to use these articles as your guide in case you need to record customer credits in QBO:

• Create and Apply Credit Memos or Delayed Credits in QuickBooks Online 
• Handle a Customer Credit or Overpayment in QuickBooks Online 

Remember, the Community is always available should you require any further assistance or have additional inquiries.

I have applied the expense to the A/R account. The Expense has been applied to the Credit Memo.  I have attached a screenshot of the Profit and Loss showing still showing the Unapplied Cash Payment account reflecting these values.  Incidentally, the Credit Memo is also showing up under Not Specified, even though I had assigned it to the same Class as the Expense/Check (8010 Arrow Creek)

Good morning, @cleco1. 

Thanks for reaching back out with additional information about your issue. 

With the details you gave, I recommend contacting our Customer Support Team for further assistance. They'll be able to review each part of your account that has to deal with this situation so they can determine the best solution for you. Here's how: 

1. Go to the Help icon in the top right-hand corner. 
2. Click on the Contact Us option. 
3. Enter your question and tap Let's talk. 
4. Scroll down and choose to Get a callback. 

It's that easy! 

Keep us updated on how the conversation goes with our support. We're always here to have your back. Have a splendid day!