Credit auto-applied to recurring sales receipt?

Hi, @Bocnuts. Thanks for posting to the Community.

You won't have to use a credit memo to issue a partial refund. Because a credit memo will automatically apply to the customer's oldest open invoice or open balances when you turn on the Automatically apply credits from the Account and settings.

In your case, you'll have to use a Refund receipt manually since recurring sales receipts are fully paid transactions.

1. Select + New and then choose Refund receipt.
2. Select the customer you want to refund from the Customer ▼ dropdown.
3. Enter the details in the fields using the same info from the original sale. To credit back their credit card, in Payment method, select Credit card. To credit back their bank account, in Payment method, select Direct Debit.
4. In Refund From, select the account you wish to refund the customer from.
5. Select Save and close.

You can reference this article: Void or refund customer payments in QuickBooks Online. It also covers how to refund an invoice.

Additionally, I'd like you to check out these to learn more about how to turn on automatically applying credits to open customer balances and refund customer payments:

• Create and apply credit memos or delayed credits in QuickBooks Online
• Record a customer refund in QuickBooks Online

Please get back if you have other QuickBooks record-keeping concerns. I'm still here to help. Take care always, and more power to your institution!

Thank you for your response!  I don't have Direct Debit displayed as a choice.  Although I know I can add it, I use ACH to process my recurring receipts.  However, when I choose ACH in the refund receipt as the payment method, it brings up the field for 'check number' with a 'print later' selection and does not have the ACH bank account info.  Is there another selection I am missing to refund it directly to their bank account?

Hi there, Bocnuts. 
 

Let me make it up to you by ensuring you'll be able to add the bank account info in QuickBooks Online (QBO). 

The option to enter the ACH bank account info on the refund receipt window isn't available in QuickBooks Online (QBO). However, you can setup your bank account details in the Customer info. 

1. From the Enter bank account info window, click +Add instead of Edit.
2. Fill in the Account Number, Routing Number, Account Type, Phone Number, and Name fields.
3. Place a checkmark in the box next to Use this account information in the future and I have signed authorization from my customer or will read the authorization script.
4. Click Save.

You can check out this article for more information: Process an ACH bank transfer from a customer.

For more details on handling customer payments, you can check out these pages: 

• Find out when QuickBooks Payments deposits customer payments
• Customize invoices, estimates, and sales receipts in QuickBooks Online

Please know that I'm just a post away if you need more help changing the account number. Take care.

My apologies, but I am still not finding how to attach an ACH to a refund receipt in QBO.  For my customers, I have set up recurring transactions to cover tuition, so I have that information.  When 'Customer Info' is referenced in the previous post, where am I entering this...from my customer list?  I ask because there is no 'enter bank account info' window that I see on that page.  

When I click on a customer, it shows sections for 'name and contact', 'addresses', etc. and it has a section for 'payments' under which I can select ACH and it brings up their account information I entered for the recurring receipts.  Is this what is being referred to in the previous post?  If so, when I select ACH(it doesn't show any bank info) in the refund receipt for a particular customer, will it then process the refund to the 'primary payment method' identified in the 'payments' section of the customer?

Hello there, @Bocnuts.

First off, I'd like to appreciate you for taking the time to follow the steps provided by my colleagues above. Allow me to chime in on this conversation and clarify things out.

Recording a refund for an ACH payment is only available on Refund receipts. However, refunding an ACH payment to the customer's bank account isn't available in QuickBooks Online (QBO). With this, I'd recommend choosing another refund method either cash, check, or store credit.

Additionally, here's an article that'll help you in case you'll want to set up autopay for recurring invoices so you won't have to keep track of your customer's payment information: Set up Autopay for recurring invoices in QuickBooks Online.

I'll be around in case you need further assistance with regard to issuing a refund to customers in QBO. Simply leave a comment below, and I'll get back to you.

I already utilize ACH auto-pay for our customers via recurring transaction.  Are you saying that QBO offers no way to offer a refund/partial refund via ACH back to our customers' accounts?  There is no way to refund our customers via the same way that they pay us? 

This seems to be a significant shortcoming of QBO...

I appreciate your feedback, Bocnuts.

Generally, there's a slim chance of recovering funds sent via bank transfer, which I personally think is the reason why our company doesn't have a refund option for ACH payments. However, I believe businesses should have that capability because they handle funds differently. Let's submit a suggestion for this.

1. Click the Gear icon.
2. Choose Feedback.
3. Enter a summary of your suggestion and click Next.
    

As a workaround, you can issue a check or send money to your customer, and record it as a refund receipt in QuickBooks. Please refer to the attached file.

Speaking of refunds, I can see that my colleagues have provided some references above, especially for refunding credit card payments. You can just use them as a reference in the future.

Don't hesitate to reach back out if you have more questions about refunding your customer. Take care and have a good one!