Refunding a Credit Card Payment for an Invoice

Link to Intuit's instructions:
Void or refund customer payments in QuickBooks Online (intuit.com)

I'm glad you were able to process the refund, @miradorit.  Allow me to add details to help you manage your invoice payment.

If you plan to mark the original invoice as unpaid, the refund should be recorded as a check and posted to Accounts Receivable. Subsequently, we will need to unlink the payment from the invoice and link it with the check using the Receive Payment feature.

Given that you have already followed the article and generated a refund receipt to reimburse the customer, we're unable to link this transaction to an unapplied payment. As a result, we will need to create a new open invoice.

Here's how:

1. Select + New.
2. Select Invoice.
3. Choose a customer and review the Invoice date, Due date, and Terms, then enter new dates or terms.
4. Select Add product or service and select a product or service from the dropdown.
5. Enter the necessary information, then proceed to Review and send the Invoice or proceed to receive payment.

You can check this article to guide you when you need to review your transactions: Categorize online bank transactions.

We're available 24/7 for any further inquiries regarding managing invoices. Take care.

Thank you for your reply, but...

I have Invoice #1 for Widget A for $100 for which payment was inadvertently paid to the customer's credit card.  A credit card refund was processed using instructions supplied by Intuit. The refund was processed successfully. Invoice #1 is still marked PAID.

My sales for Widget A shows $100.

You're asking me to create Invoice #2 for Widget A for $100.  My sales for Widget A will increase by another $100.

I mean no disrespect, but your suggestion won't solve the problem of Invoice #1 still showing PAID.

Hi there, Mira. We'll share details to provide clarification and help you learn more about how refund works inside QuickBooks Online (QBO).

When issuing a refund receipt to a customer for their invoices inside QuickBooks Online (QBO), the item used in the invoice also gets returned to your inventory. Due to recording purposes, the transaction remains paid inside the program and stays in your customer's profile or the All Sales section.

If you wish to let your customer pay using a different mode of payment, create a new invoice and set the payment method to preference. For more details, please see this page: Create invoices in QuickBooks Online.

On the other hand, we got you this article to help you create personalized sales forms inside the program: Customize invoices, estimates, and sales receipts in QuickBooks Online.

The Community team is always ready to assist if you have any follow-up invoice or transaction-related questions. We encourage you to comment below so we can respond right away. Stay safe.