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Level 1


I accidentally charged a client the incorrect amount so I issued a refund receipt for the entire amount of the transaction. As I'm unsure if the refund will be returned to my bank account or go back to the client's account (desired outcome), I'd like to send my client a placeholder payment for the refund amount. How can I achieve this?

5 Comments 5


Hi there, madeiraconsultants


A placeholder entry is a recurring invoice in QuickBooks Online. 


For a placeholder payment, you can create a credit memo since you aren't sure if the payment will be posted to your bank. This credit can be applied to the future invoice of your client.


Here’s how to create a credit memo in QuickBooks.


  1. Click the Plus (+) icon and select Credit Memo.
  2. Choose the customer name.
  3. Enter the Credit Memo Date.
  4. Fill in the necessary information.
  5. Click Save and send to notify the customer of the credit.


Check out this link to learn how to link the credit to an invoice: Create and apply a credit memo


I'm also adding this article to learn how to process a refund in QuickBooks: Void or refund customer payments in QuickBooks Online. It provides detailed steps as a guide.


Get back to me if there's anything else you need about sending a placeholder payment. I'll be right here to guide you.

Level 1


Thank you so much for the explanation! The client wants the actual funds in his account as opposed to store credit, so I'll need to send over a payment to him. Is there a way to process a payment to the customer as a 'placeholder' until we can determine where the refund receipt payment goes on Friday?

QuickBooks Team


Hello there, madeiraconsultants.

Thank you for adding more details about your concern. The information shared will guide us on how to process a payment to your customer.


Since there’s a refund receipt created, you’ll no longer have to create a placeholder payment. The refund payment will be returned to your client's account rather than to the firm.

While waiting for the refund to be deposited back into your customer's account, you can write a check and have them return it when they receive the funds.Then void it in your records.

Here’s how:


  1. In QuickBooks Online (QBO), head to the New menu in the upper right and select Check under Vendors.
  2. On the transaction’s page, click the Payee drop-down and choose the customer’s name.
  3. Then pick the account you wish to use in the Bank Account drop-down.
  4. Fill in the remaining fields.
  5. Navigate to the Category details section and go to the first line to select the account used for the item.
  6. Utilize the Description column to add more details about the entry.
  7. Input the payment in the Amount field.
  8. Press Save and close.


For additional resources, the links below will help you organize your cash flow, and track sales, receivables, and profitability more accurately.



Feel free to leave a comment below if you have additional questions on how to manage your customer’s payments and refunds. I’ll get back to make sure this is taken care of for you. Have a great rest of the day.

Level 1


I appreciate the explanation on how to send a check. This was most helpful. I completed this and then attempted to receive payment. However, because I use recurring transactions to ACH from my client's bank account, there is no invoice that I can reference to receive the payment. It shows as having already been refunded in the customer list. When I attempt to set the payment as zero, I'm unable to save as the message I get is that Accounts Receivable can't be less than the transaction. I appreciate any guidance you can provide to get me past this point.



Hello @madeiraconsultants,


Thank you for getting back to us here in the Community. Allow me to chime in and provide additional information about entering customer refund in QuickBooks Online.


I've reviewed the thread from the beginning until the last part to know more about the concern. I can see that you're using a recurring ACH payment and want to record the refund.


The way you record the transaction will depend on how you handled the payment. Can you share more details on how you canceled the processed payment and entered the refund?


Any additional information and screenshots will help us provide an accurate and detailed resolution. Also, please note that when creating a refund receipt, you have the option to select Bank as the payment method to credit it directly to the bank.


Also, it would be best to contact our Payments Team to verify the refund status. Our support for Payments is available from 6 AM - 6 PM PT (Monday - Friday). Here's how you can reach them:


  1. Go to: Contact Payments or Point of Sale Support.
  2. Click Chat with us under QuickBooks Payments.
  3. Follow the instructions on how to contact support.


Also, I've attached a link that contains important notes about voiding an eCheck transaction in QuickBooks: Void an eCheck transaction.


Drop me a comment if you need more information about adding an ACH refund. I'm always here to help. Take care always.

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