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Highlighted
Level 2

Invoices

This is probably very basic, but I can't seem to find a direct answer for these questions. 

 

I create invoices for my customers who can pay either by check or credit card.  When I refund a customer who paid by cc it seems that I cannot use a Refund Receipt because I don't have the cc info.  Instead I choose to use the Quickbooks Payments to reverse the cc transaction to refund the customer.    After that I'm not sure what the next step is.  How do I handle the invoice?  Do I void it?  Do I wait until the refund goes through and match that to a the invoice when I do my banking in QBs?  

 

Also, if I am keeping a credit for a customer (instead of a refund) to use in the future, without applying it to an invoice, is that a credit memo.   Do I create one and just leave it until the customer uses it?  

Solved
Best answer June 04, 2020

Best Answers
Highlighted
QuickBooks Team

Invoices

Hi there, @DPKennedy2060.

Let me share additional insight with regard to your concern. Since you use QuickBooks payments to create a refund to the customer, there's no need for you to void the invoice. All we need to do is to wait for the transaction to be automatically synced in QuickBooks Online (QBO). The refund will also be downloaded in your Online Banking and will show in the For Review tab where you can match it to the invoice.

 

For your second concern, yes, you can use a credit memo to apply credits to future invoices. This is a posting transaction that can be applied as a payment to close out outstanding invoices. They can use it to offset their existing balance whenever they needed to.

Also, just make sure to turn off the automatically apply credits feature in QBO. This way, you'll have the option to apply the credits to your customer's invoices manually. Here's how:
 

  1. Click the Gear icon.
  2. Select Account and Settings.
  3. Go to the Advanced tab.
  4. Click the Pencil icon in the Automation row.
  5. Uncheck the Automatically apply credits box.
  6. Click Save, then Done.

 

Even though, if you've turned off the feature already, you can still see the credit or unapplied payment when you record the payment manually. If you're not going to apply it to the invoice, ensure not to select the credit.
 

You can get in touch if there's anything else that you need. Click the Reply button, and we'll reply as soon as we can. 

View solution in original post

Highlighted
QuickBooks Team

Invoices

You're on the right track in splitting your downloaded refund transaction, @DPKennedy2060.

 

Let's resolve the payment differences when matching transactions by clicking the Resolve Difference button. It's possible that the difference is for the transaction or processing fees. Also, this helps match your transactions by resolving its difference until it will be equal to zero.

 

Here's how:

  1. Go to the Banking page, select the For Review tab.
  2. From the For Review tab, locate the split refund.
  3. Select the Find other records or Find match button to open the Match transactions window.
  4. By default, the Match transactions window lists All transactions within the date range, but you can narrow the results.
  5. Use options on the Show drop-down menu to specify the type of transaction you're looking for.
  6. If the transaction you're looking for is outside the default date range, select the From and To date fields to change the dates.
  7. If the amounts are different, you can locate additional matched transactions, or select Resolve Difference to open the Add resolving transaction fields to add the Category and Amount (and, optionally, Payee) of a resolving transaction until the difference equals zero.
  8. If necessary, you can use the Add new transaction button to add multiple resolving transactions.
  9. Click Save.

You can check these articles for more insights about the process:

Know that I'm just a reply away should you need anything else. I'll be around to help. 

View solution in original post

Highlighted
QuickBooks Team

Invoices

Hi there, DPKennedy2060.

 

I'll help you in handling the outstanding balance. 

 

We only have to issue a refund for the first payment. Since your customer has decided not to purchase this certain product/service, we can void the invoice to zero out the balance if there's no product or service that has been delivered yet.

 

Please take note that voided invoices will not be removed from your records, hence it will not affect the invoice numbering sequence. Also, the customer cannot make payment anymore for a voided invoice. Here's how to do it:

 

  1. Select Sales from the sidebar menu.
  2. Go to the Invoices tab.
  3. Find the invoice you wish to void.
  4. From the Actions column drop-down menu, select Void.
  5. Choose Yes to confirm the changes.

If you already delivered a product/service to your customer, we'll need need to record the remaining balance as a bad debt and write them off. This process will ensure that your accounts receivable and net income stay are accurate and up-to-date. You can read this article to be guided in doing it.

 

In case you'll need to track all the refunds that you've processed for a particular date range, we can customize the Transaction List by Customer report. I'll show you how:
 

  1. Select Reports from the sidebar menu.
  2. Enter "Transaction List by Customer" in the search bar.
  3. Click the Customize button.
  4. Set the desired reporting date.
  5. Go to Filter, then choose Refund from the Transaction Type drop-down menu.
  6. Pick a specific customer on the Customer drop-down, then click Run report.

As always. you can find me here if you have any other concerns or follow-up questions about this topic. Have a pleasant day ahead.

View solution in original post

14 Comments 14
Highlighted
QuickBooks Team

Invoices

Good evening, @DPKennedy2060

 

Thanks for taking the time to reach out to the Community. I'd be happy to help you with refunding a customer credit card. 

 

Here's how to refund a credit card payment:

  1. Select + New in the left corner, then choose Refund receipt
  2. Click on the customer you want to give a refund to from the Customer drop-down arrow. 
  3. Fill out the other fields with the information from the original sale. 
  4. Pick the payment method and the account to issue the refund from. 
  5. Enter the product/service you're refunding and the amount. 
  6. Go to Save & Close. If you want to send a refund receipt to your customer, choose the drop-down arrow, then Save & Send

 

For more detailed instructions with refunding a credit card in QuickBooks Online, please refer to this article: Refund a credit card payment in QuickBooks Online.

 

When creating a credit for a customer, it'll only apply to that customer for whenever you want to use it. You can check out this video with additional information with recording credits as well: How to Record Customer Credit: Credit Memos & Balances

 

You can also check out our Video Tutorials in the Community for further information on QuickBooks Online. 

 

Feel free to follow up and let me know how it goes. I'm always here to help. Have a safe and productive rest of your day!

Highlighted
Level 2

Invoices

I've already read this a dozen times.  It's not my question.  

Highlighted
QuickBooks Team

Invoices

Hi there, @DPKennedy2060.

Let me share additional insight with regard to your concern. Since you use QuickBooks payments to create a refund to the customer, there's no need for you to void the invoice. All we need to do is to wait for the transaction to be automatically synced in QuickBooks Online (QBO). The refund will also be downloaded in your Online Banking and will show in the For Review tab where you can match it to the invoice.

 

For your second concern, yes, you can use a credit memo to apply credits to future invoices. This is a posting transaction that can be applied as a payment to close out outstanding invoices. They can use it to offset their existing balance whenever they needed to.

Also, just make sure to turn off the automatically apply credits feature in QBO. This way, you'll have the option to apply the credits to your customer's invoices manually. Here's how:
 

  1. Click the Gear icon.
  2. Select Account and Settings.
  3. Go to the Advanced tab.
  4. Click the Pencil icon in the Automation row.
  5. Uncheck the Automatically apply credits box.
  6. Click Save, then Done.

 

Even though, if you've turned off the feature already, you can still see the credit or unapplied payment when you record the payment manually. If you're not going to apply it to the invoice, ensure not to select the credit.
 

You can get in touch if there's anything else that you need. Click the Reply button, and we'll reply as soon as we can. 

View solution in original post

Highlighted
Level 6

Invoices


@DPKennedy2060 wrote:

I've already read this a dozen times.  It's not my question.  


 

@DPKennedy2060   One thing you'll learn, if you haven't already, is that Intuit and there "Team" are #1 at NOT answering the questions asked.  You can ask it OVER and OVER, in many different ways, with as little or as much detail as you choose, and you still will have a hard time getting an answer to your ACTUAL question(s). 

Highlighted
Level 2

Invoices

That is certainly something I found out quickly! Thanks!

Highlighted
Level 2

Invoices

So I waited for the refunds to show up in the online banking but I could not match it to the invoice.  When I selected Match, the transactions that were refunded in payments did not show up there. 

For instance, one refunded amount was the total of 4 different invoices.  I selected split and chose each of the four invoices (customer names) and amounts to off set it.   Nothing applied to those invoices and they are all still showing open balances.    Even when I did a few individual reverse transactions in payments I did not get a match when the refund downloaded to online banking.   Obviously I am doing something wrong.

Highlighted
QuickBooks Team

Invoices

You're on the right track in splitting your downloaded refund transaction, @DPKennedy2060.

 

Let's resolve the payment differences when matching transactions by clicking the Resolve Difference button. It's possible that the difference is for the transaction or processing fees. Also, this helps match your transactions by resolving its difference until it will be equal to zero.

 

Here's how:

  1. Go to the Banking page, select the For Review tab.
  2. From the For Review tab, locate the split refund.
  3. Select the Find other records or Find match button to open the Match transactions window.
  4. By default, the Match transactions window lists All transactions within the date range, but you can narrow the results.
  5. Use options on the Show drop-down menu to specify the type of transaction you're looking for.
  6. If the transaction you're looking for is outside the default date range, select the From and To date fields to change the dates.
  7. If the amounts are different, you can locate additional matched transactions, or select Resolve Difference to open the Add resolving transaction fields to add the Category and Amount (and, optionally, Payee) of a resolving transaction until the difference equals zero.
  8. If necessary, you can use the Add new transaction button to add multiple resolving transactions.
  9. Click Save.

You can check these articles for more insights about the process:

Know that I'm just a reply away should you need anything else. I'll be around to help. 

View solution in original post

Highlighted
Level 2

Invoices

Hi lamjuViel,

I do know how to match transactions.  Issue here is that there is no match.  What comes up is almost less than half of the amount I am trying to resolve.  And that is searching all transactions for a greater period of time than I need, just to make sure that I covered all bases.  I think I did something wrong when I refunded.  All I did to refund was go into QB Payments and reverse the transactions.  The total that showed up in Online Banking is correct, but I just can't find a match.  

Highlighted
Level 2

Invoices

Should I have issued a refund receipt at the time I reversed the transactions in QB Payments?  No names/invoices come up when I try to match.  I must have missed a step somewhere when I did the refund.  

Highlighted
Level 2

Invoices

I issued refund receipts to each invoice and was then able to match the downloaded transactions from QB Online to the invoices. The invoices however still show as open with unpaid balances.  I guess that's my next step, figuring out why and how to correct the open balance invoice.  

Highlighted
QuickBooks Team

Invoices

Hi there, @DPKennedy2060.

 

I'm happy to help you figure out if you've missed a step somewhere when creating a refund. First, I need to ask you a couple of questions so we can figure out what happened.

 

  • What steps did you take when creating your customer's refund?
  • Can you provide a screenshot of a few of the steps?

 

By answering the question and providing a screenshot, I can help you determine if any mistakes were made in the process. In the meantime, I recommend referencing the steps and articles mentioned above by @Kendra H to learn how to refund a credit card payment in QuickBooks Online.

 

I'll keep an eye out for your reply. 

Highlighted
Level 2

Invoices

Hi Anna,

I think I figured it out.  I was advised not to do a Refund Receipt so instead I was reversing the transaction in QB Payments.  With nothing to offset it in QB online I realized that I did have to do a Refund Receipt, but the difference is to uncheck process credit card and just indicate the account the payment was coming out of, ie, my bank account.  Once I created the Refund Receipts I was able to match up the transactions from Online Banking to the invoice/ref receipt.  

 

I still however show the customers invoice as open with a remaining balance.  They only pay a deposit first and that is what I needed to refund.  So while the refund was processed and matched, the invoice is still outstanding.  

 

In the attached screen print you can see the invoice created on 12/8.  Next you see a payment of $250 made on 12/8.  That left an open balance of $306.50.  You can see the refund for $250 completed on 5/28.  So do I need to void the invoice?  I'm not sure how to handle the invoice in this situation. 

 

I hope I provided enough information.  I am trying so hard to figure all of this out so I can run my business smoothly.  It's a learning curve for me!

Highlighted
QuickBooks Team

Invoices

Hi there, DPKennedy2060.

 

I'll help you in handling the outstanding balance. 

 

We only have to issue a refund for the first payment. Since your customer has decided not to purchase this certain product/service, we can void the invoice to zero out the balance if there's no product or service that has been delivered yet.

 

Please take note that voided invoices will not be removed from your records, hence it will not affect the invoice numbering sequence. Also, the customer cannot make payment anymore for a voided invoice. Here's how to do it:

 

  1. Select Sales from the sidebar menu.
  2. Go to the Invoices tab.
  3. Find the invoice you wish to void.
  4. From the Actions column drop-down menu, select Void.
  5. Choose Yes to confirm the changes.

If you already delivered a product/service to your customer, we'll need need to record the remaining balance as a bad debt and write them off. This process will ensure that your accounts receivable and net income stay are accurate and up-to-date. You can read this article to be guided in doing it.

 

In case you'll need to track all the refunds that you've processed for a particular date range, we can customize the Transaction List by Customer report. I'll show you how:
 

  1. Select Reports from the sidebar menu.
  2. Enter "Transaction List by Customer" in the search bar.
  3. Click the Customize button.
  4. Set the desired reporting date.
  5. Go to Filter, then choose Refund from the Transaction Type drop-down menu.
  6. Pick a specific customer on the Customer drop-down, then click Run report.

As always. you can find me here if you have any other concerns or follow-up questions about this topic. Have a pleasant day ahead.

View solution in original post

Highlighted
Level 2

Invoices

Thank you!!

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