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We collected a deposit towards an invoice (services & materials) to lock in a specific service date approximately a month out.
The customer cancelled within 24 hours notice, qualifying him for a cancellation fee per our policy.
What are the appropriate steps to provide him a partial refund (deposit - cancellation fee)?
How do we create this refund (the deposit was towards various services and materials)? How do we make sure our inventory isn't effected, since we never used these items? What do we do with the original invoice?
Let me help you record the partial refund towards the canceled invoice, DS93.
If a customer gave you a deposit for an invoice but changed their mind. Then, they backed out of the transaction, just reverse the deposit by giving the customer a refund and apply for credit. To refund a deposit in QuickBooks Online (QBO), we'll need to create a credit memo, a check to refund the deposit, and then record the payment. This will close the original invoice in QBO. The first step in refunding a deposit is to create a credit memo. Here's how:
The credit memo is created. The next step is to issue a check to refund the deposit. Just follow instructions on Step 2: Create a Check to refund the deposit section in the How to refund a deposit and close an invoice article. Then, proceed to the next steps to finish the process.
Feel free to visit our Sales and customers page for more insights about managing your company's income and customers.
I'd like to know how you get on after trying the steps as I want to ensure this is resolved for you. Just leave a comment below and I'll get back to you. Have a great day ahead.
You're most welcome, @trailways.
I’m glad to know that the information provided by my colleague above has helped you to figure this out. Thank you for making business with us in QuickBooks.
If you have any other concerns about QuickBooks count me in. I'll surely get back to you. Take care.
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