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userimripersiado
Level 2

Refunding question

Hello,

 

A customer has paid me more than he should have.

What would be the right way to refund him for the extra amount of funds?

 

Imri Persiado

Solved
Best answer July 04, 2021

Best Answers
ShiellaGraceA
QuickBooks Team

Refunding question

I'll share the steps on how you can process a customer refund, @userimripersiado.

 

You'll want to record the customer refund first by creating an expense or check. Then, link the refund to a customer's overpayment. Let me guide you how.

 

To record the customer refund:

 

  1. Go to + New. Then, select Expense or Check
  2. Choose the customer you want to refund from the Payee drop-down.
  3. Select the bank account to where you deposited the overpayment.
  4. On the first line of the Category column, select Accounts Receivable.
  5. Enter how much you want to refund in the Amount field.
  6. Click Save and close

 

After that, follow these steps to link the refund to a customer's overpayment. Here's how:

 

  1. Go to + New.
  2. Choose Receive payment.
  3. Select the same customer you used for the check or expense when recording the refund.
  4. Under the Outstanding Transaction section, mark the checkbox for the Expense or Check you created when recording the refund.
  5. Make sure the payment is equal to the open balance, then click Save and close. See the image below.

 

 

Learn more about this process in this article: Record a customer refund in QuickBooks Online.

 

That's all there is to it. If you need help with other customer-related tasks, browse this link here to go to our general topics with articles.

 

Drop your comment below if you still have questions or concerns with customer refunds. I'm always here to help. Take care and have a great weekend.

 

 

 

View solution in original post

5 Comments
ShiellaGraceA
QuickBooks Team

Refunding question

I'll share the steps on how you can process a customer refund, @userimripersiado.

 

You'll want to record the customer refund first by creating an expense or check. Then, link the refund to a customer's overpayment. Let me guide you how.

 

To record the customer refund:

 

  1. Go to + New. Then, select Expense or Check
  2. Choose the customer you want to refund from the Payee drop-down.
  3. Select the bank account to where you deposited the overpayment.
  4. On the first line of the Category column, select Accounts Receivable.
  5. Enter how much you want to refund in the Amount field.
  6. Click Save and close

 

After that, follow these steps to link the refund to a customer's overpayment. Here's how:

 

  1. Go to + New.
  2. Choose Receive payment.
  3. Select the same customer you used for the check or expense when recording the refund.
  4. Under the Outstanding Transaction section, mark the checkbox for the Expense or Check you created when recording the refund.
  5. Make sure the payment is equal to the open balance, then click Save and close. See the image below.

 

 

Learn more about this process in this article: Record a customer refund in QuickBooks Online.

 

That's all there is to it. If you need help with other customer-related tasks, browse this link here to go to our general topics with articles.

 

Drop your comment below if you still have questions or concerns with customer refunds. I'm always here to help. Take care and have a great weekend.

 

 

 

View solution in original post

userimripersiado
Level 2

Refunding question

Thank you for your kind reply.

 

When trying to link the expense to the receive payment, I'm getting an error and I don't see the expense\check under "outstanding transactions".

 

Please see below:

1.png 2.png

MaryJoyD
QuickBooks Team

Refunding question

You're welcome, @userimripersiado. It's our pleasure to help. 

 

I can share some information in recording your customer refund.

 

You can try to check the expense/check that you've created and make sure the affected account is Accounts Receivable. Make sure that it's associated with the correct customer name.

 

There are different ways in handling a customer overpayment in QBO. For the step-by-step guide, you can refer to this article: Handle a customer credit or overpayment in QuickBooks Online. It also includes details about setting up customer credits to apply to future payments by default.

 

Here are some articles you can read for ideas about how you can work with your sales in QuickBooks: Sales and Customers for QuickBooks Online.

 

I'm always here if you have questions about recording your transactions. Keep safe and have a wonderful day!

userimripersiado
Level 2

Refunding question

I've selected the "Rent income" account which is an income account. That's also the overpayment account.

Should I record it differently?

 

Imri

ZackE
QuickBooks Team

Refunding question

Thanks for getting back with the Community about this, userimripersiado.
 

When recording refunds, you'll want to use your Refund From ▼ drop-down list to choose the bank account you deposited your payment into.
 

If you're unsure as to which account you'll need to use, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
 

Here's how it works:

  1. Go to our Find an Accountant page.
  2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
  3. Select Search.
  4. Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.

 

Once you've found an accountant, they can be contacted through their Send a message form:

  1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
  2. Enter your appropriate info in the Your nameYour email, and Your phone number (optional) fields.
  3. Hit Send message.

 

You'll additionally be able to find many detailed resources about using QuickBooks in our help article archives.

 

I'll be here to help if there's any questions. Have a wonderful day!

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