Return the change in cash for a customer that gave me more money than the invoice amount!

Hi Lembi,

It can be inconvenient when a software you use doesn't have a feature that you're used to having, especially when it involves something as simple as returning a change to a customer. I'm here to help.

One thing you'd want to do before recording a payment with an excess amount is to disable the Automatically apply credits option in your settings. That way, the excess amount won't be automatically applied to other open invoices of the customer. Otherwise, you'll need to recreate the payment transaction. You don't have to if there's no other open invoice.

To start, yes, you're right about creating a credit memo for the excess amount. After that, you'll want to create an expense transaction for the customer (payee), use the Accounts Receivable (A/R) account in the Category details section, and enter the same amount. This expense will serve as a refund.

The next thing that you'll want to do is to link the credit memo to the expense transaction by creating a Receive Payment entry. This will close both transactions and prevents accidentally applying them as payments to future invoices.

Check out this article for more refund scenarios: Record a customer refund in QuickBooks Online.

On the other hand, I understand it would help a lot if there's a refund option like in QuickBooks Desktop, so please don't hesitate to submit your feedback. That way, our engineers can consider making changes in future updates. 

If you have any other questions or need further assistance, please don't hesitate to ask. Take care!

It took me a while until I think about that work around yesterday. I still think that this is not acceptable. I know the Sales Receipt would work better but we want to create invoices for each customer because of a few specific reasons concerning our business. 

For once, customers put the invoice and came to pick it up 2 or 3 days later. Between other reasons.

But anyways I do appreciate your help. I could not accept all those steps of creating Memos and all. Its ridiculous because for start if I cannot create a memo towards the invoice,.. I have to choose one product and create the memo our of it - even if my invoice had 15 products...  Then its going to be on the product report ....  what is ridiculous.

I just cannot understand why they don't have this feature of just let us choose between apply credit or refund the change! Super annoying!

Now when I got the same idea as yours I thought just about to create one product:

Petty Cash... then I choose Petty Cash Bank account as Income and as an expense as well. I put on the description:

Money refund to customer (Overpaid Cash Refund)

So whenever this happens I jump a line and I add this product on the invoice with the value of $1,77 (of our example) and I give the customer the invoice stamped PAID and he sees the last line as equal the money I just gave him as a change!

Than my register on Petty Cash account will be ok!

Now my question for you....You create two products on your example. What it would be the consequences if I just have one like I did? On my work around I use the Cash Refund and then I just pay the invoice normally.

Anyways I will deposit to the bank for real $255. Whenever my Petty Cash is low I would transfer money from undeposited funds to Petty Cash!

Am I doing something wrong? Thank you and I am sorry for the long text!

This is WAY TOO MUCH work and it does not work for us!

You would have to choose a product for the Credit Memo and on the report of this product would be there some money that would looks like a discount or something.... 

I found a work around yesterday and another member of the community just confirmed to be the best option!

Now that said.... QuickBooks Online is missing too many tools and features that we have on Desktop! It make the transition a nightmare .. we had products assembly for example and you have bundles which does NOT control inventory... so its too many things missing! QB online is on market for a long time - Its a shame its not built yet!

Honestly!

Hello again, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Keep safe and have a great rest of the day.

Adding the Expense transaction from Accounts Receivable worked for me. Didn't need to add a credit memo, though.

I'll add my voice to the chorus calling for this to be built-in simple. Kindergartners learn how to make change, why hasn't Intuit? Even the Credit or Refund option on over payments like the desktop version would be a huge step up.

We hear your sentiments, @CreativePrinters.

We recognize that having the credit or refund options on over-payments can help streamline your workflow. However, these features aren't currently available in QuickBooks Online (QBO).

To help improve your experience with QBO, your valuable feedback goes directly to our product development team for review and consideration.

Here's how to send it:

1. Go to the Gear icon and choose Feedback.
2. Enter your comments or suggestions.
3. Click Next to submit.

Also, I'll add this helpful article you can use in the future, which outlines steps on voiding or refunding payments you process through QBO: Void or refund customer payments in QuickBooks Online.

You can always get back to this thread if you have any other concerns related to QBO. We've got your back.