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Super Explorer *

How to apply a check refund to a credit memo

I have a customer who returned product from a paid invoice after payment was applied. There was also added expenses refunded for freight and such. I entered a credit memo for the returned product and other expenses and applied partial payment to a smaller still open invoice. With the remaining balance I issued the customer a refund check. My question is how do I apply the remainder of the credit memo to the refund check so that the customer no longer shows a credit due?

QuickBooks Team

Re: How to apply a check refund to a credit memo

I appreciate you for sharing complete details about your concern, @dal1cas2.


When a customer pays for an item and wants to return it for a full or partial refund. In this case, use Refund Receipt to record the reimbursement via cash or check.


To create a refund receipt:

1. Go the Plus (+) icon.
2. Choose Refund Receipt.
3. Select the same product/service you are refunding and enter the exact amount of the refund.
4. Enter the necessary information.
5. Click Save and close.

For more detailed steps, you may check this article: Record a customer refund.


Also, if you want to apply credits for an overpayment, you can refer to these articles:

Let me know if you have other questions. I'm always here to help.

Super Explorer *

Re: How to apply a check refund to a credit memo

This solution does not seem to work as I already gave the customer a refund check. The customer's account now shows a refund due to them that was already give. What I need to do is find out how to mark this amount as no longer due to customer.

QuickBooks Team

Re: How to apply a check refund to a credit memo

You can delete the refund check you’ve created in QuickBooks, dal1cas2.

Once done, recreate it this way:

  1. Click the Plus icon at the top. 
  2. Select Check under Vendor. 
  3. Enter the customer’s name on the Payee field. 
  4. Enter the bank involved under Bank Account. 
  5. Select Accounts Receivable under Category.
  6. Enter the correct amount and other necessary information. 
  7. Click Save and Close. 

This will offset your customer’s due credit balance. 

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