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ZC Building Supply
Level 1

clear customer credit

We don't link our bank account to QB. 

How do you do when a customer return products, I adjust their invoice with a overpayment, I refund their money by our credit card machine and the customers account leave a credit that is already refunded. How do I clear that credit? 

9 Comments 9
BettyJaneB
QuickBooks Team

clear customer credit

Hi there, @ZC Building Supply.

 

Glad to have you back here in the Community. Allow me to share some information about recording a refund in QuickBooks Online.

 

You can record a refund to your customer using a check or expense. This will reduce your bank's balance, and offsets the customer's open credit, overpayment, or prepayment.

 

To do that:

  1. Select Plus icon (+) on the Toolbar.
  2. Under Vendors, choose Check or Expense.
  3. In the Account column, choose Accounts Receivable.
  4. Enter credit, prepayment, or overpayment amount in the Amount column.
  5. In the Customer column, choose the customer.
  6. Select Save and close.

Here's an article that you can check out for the entire steps of this process: Record a customer refund.

 

You can also read through this link about applying a credit from an overpayment for your future reference. 

 

Lastly, if you need additional assistance with this procedure, feel free to reach out to our Customer Care Team. They have extra tools that can guide you all throughout the process.

 

Please know that I got you covered if you have any other concerns with QuickBooks. I'd be happy to help. Have a nice day.

ZC Building Supply
Level 1

clear customer credit

thank you very much for the reply. I am using 2016 Pro desktop version, where do I find the Plus sign ?

KhimG
QuickBooks Team

clear customer credit

It’s nice to see you again, @ZC Building Supply.

 

Thanks for providing the QuickBooks version you’re using. Let me guide you on issuing a refund for a returned item in QBDT.


Refund the amount to the customer by creating a credit memo or issuing a refund check. I’m adding the steps below for both transactions.


Credit memo:

  1. Go to Customers at the top menu bar, select Create Credit Memos/Refunds.
  2. Pick the customer from the Customer: Job drop-down.
  3. Enter the returned items in the line item area, then choose Save & Close.
  4. On the Available Credit window, select Give a refund, then click OK.

 

 

Refund check:

  1. Go to Customers at the top menu bar and select Receive Payments.
  2. Select customer and enter amount.
  3. Under the Overpayment section, click Refund the amount to the customer.
  4. Choose Save & Close.
  5. Enter all necessary information on the Issue a Refund window.
  6. Hit OK.

 

 

 

For more in-depth information on this matter, check out this article: Record a credit memo or refund in QuickBooks Desktop.


That should get you on the right track. 


Let me know if this works out for you, I’m always here to help. Have a good one! 
 

ZC Building Supply
Level 1

clear customer credit

Thank you for replying. however, we don't link QB with our bank account so we don't issue refund check. Instead, we refund via our credit card gateway machine that's not linked with QB. how do I do to clear that refund?

IamjuViel
QuickBooks Team

clear customer credit

Pleased to have you here, @ZC Building Supply.

 

When processing a refund, it would be best to use the same bank account originally used when depositing the payment from your customer.

 

Since you've made the refund via the credit card machine, is the credit card account connected with QuickBooks? If yes, all you need to do is record the refund transactions creating of create a check refund.

 

a4.jpg

 

Also, make sure to refund transaction under Accounts Receivable account to link it with the credit memo.

 

a5.jpg

Once completed, you can now match your downloaded credit card refund to the refund transactions you've created. By doing so, you'll avoid getting duplicate records of the refunds in your QuickBooks. You may check out this article for more detailed instruction: Add and match Bank Feed transaction.

 

Keep in touch with us here in the Community if you have other questions about processing customer refunds and recording it in QuickBooks. I'm always here to help.

ZC Building Supply
Level 1

clear customer credit

I do not link the credit card account with the QB. would I be able to record the refund? 

Anonymous
Not applicable

clear customer credit

Hello there, @ZC Building Supply

 

Allow me to chime in and share some insights about clearing a customer credit in QuickBooks. 

 

Yes, you can record the refund even if your credit card is not linked to QuickBooks. You can issue a credit memo as mentioned by my colleagues on this thread. You can check this article for more information: Record a credit memo or refund in QuickBooks Desktop.

 

However, since you mentioned you adjust the customer's payment with over-payment, you'll need to issue a refund check to zero out the available credits for this customer. You can use the same bank account originally used when depositing the payment from your customer.

 

Let me show you how:

 

  1. Go to Banking menu and select Write Checks.
  2. Select Accounts Receivable on the Expenses tab and enter the overpayment amount and customer. Leave the Payee field as blank. 
  3. Click Save & Close when done.
  4. Then, open the Payment transaction for the customer.
  5. On the Customer Payment window, you will see the check created. You'll need to link this check to zero out the available credits for this customer.
  6. Once done, click Save & Close.

overpayment1.PNGoverpayment2.PNG

 

Let me know how the steps went. I'll be on the lookout for your reply if you need further help with clearing out your customer's credit.

ZC Building Supply
Level 1

clear customer credit

I have to mention again, I do not link any of our bank account with QB . i can't issue check without a linked bank account. 

 

how do I clear the credit without linking a bank account? 

 

 

Charies_M
Moderator

clear customer credit

Hello there, ZC Building Supply.

 

Thanks for providing clarifications about your concern. Let's get this sorted out.

 

If you wish to create a check without a linked bank account, you can set up a clearing account in QuickBooks. This account has a zero balance and is use to move money from one account to another account when you cannot move the money directly.

 

Here's how:

  1. Go to the Lists menu.
  2. Select Chart of Accounts.
  3. Right click anywhere in the Chart of Accounts, then select New.
  4. In the Add New Account window, select the Bank radio button.
  5. Select Continue.
  6. In the Account Name field, enter Clearing Account or Wash Account.
  7. Do NOT enter an opening balance.
  8. Click Save & Close.

Here's a great resource that you can check on for more detailed steps: Set up a clearing account.

 

Now you use the Clearing Account when you write a check to clear the credit. 

 

Here's how:

  1. Go to Banking.
  2. Click Write Checks.
  3. Choose Clearing Account as your Bank Account.
  4. Enter other necessary information.
  5. Click Save & Close.

 

That should do it. Once you've created the account, you'll be able to record the expense with the right payment account in no time.

 

Please know that you're always welcome to post anytime you need help with QuickBooks reports. I'll be around.

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