I just watched the QBO tutorial video on how to issue a refund to a customer. I entered a refund receipt and the refund amount was deducted from the bank register but there is still a credit balance on the customer's A/R. I'd like to utilize the refund receipt option since I have sales tax that needs to be backed out of the liability when a refund is issued. The refund receipt makes this easier than issuing a check and calculating it manually.
Click Banking on the left pane, then select Banking.
Locate the transaction, click Match under ACTION.
This will offset the credit balance on the customer's A/R. If you're unable to match the transaction, you can follow the instructions under Find matching transactions in this article:Add and Match Downloaded Banking Transactions.