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Level 2

credit card refund and open balance

A customer was supposed to pay $2000 but ended up paying $2,135. I now have a credit balance of $135 in customers account. I have already refunded $135 back on his card from our merchant processing site. I need to enter the same in quickbooks and connect it to the open credit balance.  How do I do that? 

 

Also, how do we enter all the credit card refunds- cancellations, duplication payments or any refund in general and connect it to the customer? I normally do a journal enter or refund receipt but that way I have never been able to link it to the customer.. 

 

Thank you

3 Comments
QuickBooks Team

credit card refund and open balance

Thanks for posting your concern here in the Community. @humptydumpty.

 

I'd be happy to help provide some details on how to issue a refund and connect it to the open credit balance in QuickBooks Online (QBO). 

 

Since you've processed the refund through QuickBooks Payments, what you need to do in QBO is create a credit memo and refund the customer's credit card. Then, apply the credit memo to the outstanding invoice. 

 

Let me guide you through the steps to complete this process. The first step in refunding the deposit is to create a credit memo:

  1. Select Plus (+) icon.
  2. Under Customers, choose Credit Memo.
  3. Click the Name of the Customer on your invoice.
  4. Verify that the Amount field reflects the open balance of the invoice, less the amount of the deposit.
  5. Select Save and Close.

The credit memo is created. The next step is to refund the amount of the deposit to the customer's credit card. Here's how:

  1. Select Plus (+) icon.
  2. Under Customers, choose Refund Receipt.
  3. From the Refund method drop-down list, select the customer's credit card type.
  4. Complete the fields on the Refund Receipt, using one product/service item.
  5. Enter the amount of the deposit received in the Amount field.
  6. Select Save and Close.

The amount is refunded. The last step in the process is to apply the credit memo to the outstanding invoice:

  1. Select Plus (+) icon.
  2. Under Customers, choose Receive Payment.
  3. Select the name of the Customer on your invoice.
  4. Verify that the credit memo appears in the Credits section, and that the invoice appears in the Outstanding Transactions section.
  5. Make sure that the total credits equal the credit memo and invoice listed under Outstanding Transactions.
  6. Select both of the transactions.
  7. Select Save and Close

For further information about your last question, you can visit these articles to learn more about how to issue a refund with different scenarios: 

That should do it! Don't hesitate to drop a comment below if you have additional questions on how to issue a refund. I'll be around to help. Wishing you and your business continued success. 

Level 2

credit card refund and open balance

Thanks, Jany for answering the question.  I think I didn't frame my question correctly. I didn't process refund through quickbooks payments. I refunded from our merchant portal which is not linked to quickbooks in anyway. I need to enter the credit card refund in quickbooks and apply that to the open credit. When I created the credit memo, the total amount change to $270, when I do receive payments, I get a message saying there is no invoice to apply the payment to. 

 

I am trying to find a way to link all the overpayments and credit card or other refunds to a customer. For some reasons, I haven't been able to . ..

 

QuickBooks Team

credit card refund and open balance

Hello, @humptydumpty.

 

I've got the steps to help record your transactions accordingly. I'm here to help share them with you.

 

Once done recording a refund/credit memo, you may need to create an expense transaction accounting to the accounts receivable. Once completed, you have to link the two transactions to zero out the open balance.

 

To create an expense transaction:

 

  1. Log in to your QuickBooks Online (QBO) account.
  2. Click on the Plus (+) icon.
  3. Select Expense under Vendors.
  4. Select a payee (customer's name).
  5. Go to the Category details section, select Accounts Receivable under the Category column.
  6. Enter the amount (same amount of the credit).
  7. Click on Save and close.

Once done, go to the customer's transaction list and link the expense to the existing credit:

 

  1. Click on Sales at the left pane.
  2. Select Customers.
  3. Look for the customer's name.
  4. Click on New transaction beside Edit.
  5. Select Payment.
  6. On the Receive Payment page, put and check-mark on the expense transaction under the Outstanding Transactions section and the credit memo under the Credits section.
  7. Click on Save and close.

Once completed, the open balance will now be zero out.

 

I'm adding these articles for additional reference.

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f6 transaction liost.PNG

In case you have any other QuickBooks concerns in the future, you can always read our help articles: Help articles for QuickBooks Online.

 

Keep in touch if you have any other questions about the steps provided above. I'm always available to help however I can.

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