Question

How do I partially refund

Forum|Forum|5 years ago
May 8, 2021
1 reply
2 views

How do I partially refund for service invoice?

I use QBO. I created invoice a client $555, the total cost of the service. Client pays $100 in advance.

The client ask me to cancel the service , I charged him 25$ and send them 75$ by zelle , I issue $75 refund.

Still I have open balanceI have created a check and a payment but I haven't successfully linked those to the invoice. What am I missing?

QuickBooks Online

M

Maybelle_S

QuickBooks Team

Glad to see you in the Community, @twin Island.

I’m here to help and guide you on how to properly process the refund for your customer.

Based on your situation, let’s use the refund receipt for the service that was canceled. To avoid duplication, don’t enter a credit note.

Entering a refund receipt is simple and easy. Follow these steps to input the transaction.

1. Go to the +New button.

2. Select Refund Receipt under Customers.

3. Choose your customer from the drop-down arrow.

4. In the Refund From drop-down, pick the bank you deposited the payment for the invoice.

5. Add service in the Product/Service column and then the amount.

6. Fill in the remaining field boxes.

7. Hit Save and close.

You'll see the payment going out and will be able to match it to the refund receipt. For details about matching downloaded transactions, check out this guide: Categorize And Match Online Bank Transactions In QuickBooks Online.

If you wish to see the refund you've created, you can run the Transaction List by Customer report. Then, customize it to show all the refund receipts. I'll guide you how:

1. Go to the Reports menu.

2. On the search bar, type Transaction List by Customer.

3. Click Customize on the upper right corner.

4. Hit the General drop-down to select the appropriate date on the Report period.

5. Select the Filter drop-down.

6. Put a checkmark beside Transaction Type and then choose Refund from the drop-down arrow.

7. Hit Run report to view the changes.

You can find our training videos through this link to help get familiar with navigating the program: Video Tutorials for QuickBooks Online.

Let me know if you have any clarifications or need further assistance. I’m always ready to help and make sure you’re taken care of. Enjoy the rest of the day.

T

Twin Island Author

Angelyn_T

Moderator

Thank you for the screenshot you've added, @twin Island.

I'm here to help you with recording a partial refund to your customer.

Since your customer wants to cancel the service, you can delete or void the invoice. Once the invoice is deleted, record the $100 advance payment as a deposit to Accounts Receivable. Here's how:

Go to the +New icon, then click on Bank Deposit under Other.
Select the customer's name, then choose Accounts Receivable (A/R) under the Account column.
Enter the amount, then save the transaction.

From there, the customer will have -$100 balance from his/her profile.

To issue a refund, create a check to AR, then add the $25 deduction as a negative amount (charge or fees).

Go to the +New icon, then select Check.
Add the customer's name under the Payee section.
Fill in the information, then pick the AR and expense accounts under the Category column.
Input the amount, then save the transaction.

Once you go back to the customer's transaction list, the balance will now show as $0.00 with no overdue amounts.

For more tips about handling customer refund in QuickBooks Online, you can open this link: Record a customer refund in QuickBooks Online.

Moreover, you can review the topics from this article for more hints about handling sales and customer transactions in the future: Topics about your company's income and customers.

If you have any other follow-up questions about handling refunds, please let me know by adding a comment below. I'm always here to help. Have a good one!

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