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Level 1

How do I create a partial refund?

On a single invoice I charged for four different services at $500/each that were to occur over several months.  The customer later decided they didn't want two of the services.  The original invoice of $2000 was paid in full.  I need to refund $1000 for only those two cancelled.  When I try to process a refund I receive the error message "CustomerX's payment doesn’t have an open invoice to go with it".  

Solved
Best answer October 15, 2018

Best Answers
Highlighted
Level 15

How do I create a partial refund?

Don't mess with the completed transaction.  Just pay the customer and use your refunds income account as the expense for the payment

View solution in original post

11 Comments 11
Highlighted
Level 15

How do I create a partial refund?

Don't mess with the completed transaction.  Just pay the customer and use your refunds income account as the expense for the payment

View solution in original post

Highlighted
Level 1

How do I create a partial refund?

The transaction is being disputed.

How do you pay the customer back a partial refund?

 

Thanks,  Dr. Abreu

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Content Leader

How do I create a partial refund?

@Alex315

 

I've got you covered, Dr. Abreu.

 

As Rustler mentioned above, even if the transaction is being disputed, once it's completed you don't want to alter it. Instead, just issue a Refund Receipt for the disputed amount. I'll guide you through doing this below:

 

Create a Refund Receipt

  1. From QuickBooks Online, click the Plus (+) icon and select Refund Receipt.
  2. Select the customer who is disputing the transaction at the top, and enter a Product/Service that you'll be refunding from (thus reducing the Income from the disputed invoice).
  3. If ACH payments are enabled, be sure to pick the correct refund account and payment type before continuing.
  4. Click Save and send.

This process is also covered in our tutorial on Refund Receipts here. Check out this video demonstration for a quick example:

 

 

With these instructions, you can refund as much as you need without having to edit the disputed transaction. Please let me know if there's anything else you need, I want to make sure you're taken care of. Thanks for reaching out, wishing you a wonderful rest of your day.

Highlighted
Level 1

How do I create a partial refund?

I did the refund receipt steps a week ago, but my customers didn't get a refund. Nor do I see any funds coming out of my account. 

Highlighted
QuickBooks Team

How do I create a partial refund?

Hello there, @runamplify.

 

I appreciate you joining this thread and reaching out to us. I can share some insights about the refunding process in QuickBooks Online.

 

Are you subscribed to our Merchant Services? If so, we advise calling their department. They have the tools to investigate why your customer wasn't funded and there's no take out amount on your account.

 

You can get their most current contact details in this link: QuickBooks merchant services or QuickBooks Online support - who should I contact for help?. Go to the QuickBooks Payments support section.

 

Keep me posted on how it goes, runamplify. You can mention my name when adding a reply in this post. I'm still here to help you more. Have a good one.

Highlighted
Level 1

How do I create a partial refund?

Thanks for the info to refund customer from my checking or cash, but how would I refund back to his credit card?  Thanks

 

Highlighted
Moderator

How do I create a partial refund?

Thanks for looping in, makingsigns.

I can provide you with easy steps on how you can refund the customer's credit card via QuickBooks Online.

 

Using the Transfer feature is the easiest way to transfer funds, and the easiest to recognize in the bank register.

 

Here's how:

 

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Other, select Transfer.
  3. From the Transfer Funds From the drop-down list, select the bank account that the funds are coming out of.
  4. From the Transfer Funds To drop-down list, select the bank account the funds are being deposited into.
  5. In the Transfer Amount field, enter the amount being transferred.
  6. Edit the Date.
  7. Select Save and close.

Here's a recommended article for more details: Transfer funds between accounts.

 

Also, you may find this article helpful: https://quickbooks.intuit.com/community/Income-and-expenses/Record-a-customer-refund/td-p/186177.

 

If you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you.

 

To reach us, please follow these steps:

 

  1. Sign in to your QuickBooks Online Company.
  2. Click (?) Help at the upper right corner.
  3. At the bottom, click on Contact us.
  4. Type in your concern then hit Continue.

Keep me posted if have further questions about refunds in QuickBooks Online.

Highlighted
Level 1

How do I create a partial refund?

I've created the refund receipt and matched the expense (check that came out of our account when she cashed the refund check). The customer account still shows a credit. How do I fix it so their account no longer shows a credit?

Highlighted
Moderator

How do I create a partial refund?

Thanks for sharing a screenshot, 2mandi2.
 

I could see that there are still amounts showing at the bottom. This tells me that you may not have linked the expense and the refund made to your customer. In your case I would recommend to use Credit Memo since this will affect customer's account. Then make sure to use Accounts receivable on the expense transaction. Once done, we can link these two transactions from the Receive Payment page. 

 



Also, you may need to check on the last payment you have recorded in QuickBooks. The status partial would tell that there is an amount left unapplied to an invoice. 


You can also check this article about Customer refund
 

Let us know if you need anything else. 

Highlighted
Level 1

How do I create a partial refund?

I have a question 

I want qb to refund back the money since she paid from our qb link

i have done it in the past but this time i cant figure it out.

i dont want to ask customer for her credit card just want to refund back to the cc she used to pay us through qb please advise 

 

thank you nancy 

Highlighted
Moderator

How do I create a partial refund?

Hello pepito,

 

There are different ways to record a customer refund in QuickBooks Online. The steps may differ depending on your scenario. You can create one of the following:

  • Credit Memo - you can use it as payment for other invoices of the customer.
  • Refund Receipt - this a reimbursement to the customer for the returned items.
  • Check - this will reduce your bank's balance and offset the customer's open credits.

Though, you're more-likely to create a check based on the details you provided, I'd still recommend reaching out to your accountant about this. They know the best way to record it.

 

You can also browse the Refund a customer for open credit, prepayment, or over payment section of this link: Record a Customer Refund.

 

To return the actual amount to your customer, you might still need to ask for their credit card information. Then, you send the money through bank transfer or ACH.

 

Have a great day!

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