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gracemadd
Level 1

Does creating a credit memo refund the customer?

 
1 Comment
AlexV
QuickBooks Team

Does creating a credit memo refund the customer?

I'm here to ease your confusion between credit memo and refund, gracemadd.

 

We process refund if we reimburse our customers. We give the money back to them. While credit memo is used to offset the customer's balance. We can also apply it as a payment to the their future purchase. Creating a credit memo isn't considered as refund yet unless we applied it as a payment.

 

You can create a refund receipt to record the refund. Here's how to do it:

  1. Go to the Plus icon and select Refund receipt.
  2. Select the Customer and the affected bank account on the Refund From drop-down.
  3. Enter all details needed, then Save and close.

Here's a guide on how to record a customer refund. We can follow these steps on how to enter a credit memo:

  1. From the Plus icon, select Credit Memo.
  2. Enter all information required. 
  3. Select Save and close.

You can apply it when you receive a payment from your customer. 

  1. From the Plus icon, select Receive Payment.
  2. Select the Customer. Enter all required details.
  3. On the Credits section, select Credit Memo.
  4. Hit Save and close.Credit memo.PNG

     

    Credit memo 1.PNG

     

Here's an article for your reference: Enter and apply a credit memo or delayed credit.

 

I'm here to help you if you have additional questions. Have a great day!

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