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Level 2

How do I receive payment for an invoice, give a refund, then receive payment again on the same invoice?

I have an invoice and the payment was received (from the invoice I click "Receive Payments" and apply payment to that invoice).  I deposit everything in to "undeposited funds" because I use PayPal for credit card processing. So I have to go to the deposits and subtract the PayPal fee for each transaction before it is deposited in the PayPal account.  We then needed to give a refund to the customer because the item was not in stock.  Then 3 days later we need to receive payment again. 

 

After payment is received and I then do a "refund/credit", 1) the items from the invoice are all returned to inventory and 2) there is no open invoice to collect payment on.  

 

Is the only way to handle this is to create a second invoice?  I would rather not do that (for other reasons) if there is another way.  Thank you. 

5 Comments
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Moderator

How do I receive payment for an invoice, give a refund, then receive payment again on the same invoice?

Thanks for the detailed information, elsalty.

 

Based on the details above, here are the transaction that were recorded in QuickBooks Desktop.

  1. Recorded initial invoice.
  2. Paid the invoice.
  3. Process a refund to the customer.

Now, your customer paid again the same amount. However, the invoice is already closed.

 

You'll have to create another invoice and pay it with exact amount you received from the customer. If creating an invoice is not an option, you can create a sales receipt instead.

 

You might also want to consult your accountant on what's the best transaction to create in this situation. They know what's best for you and your books.

 

Feel free to get back to us if you need anything else. Have a great day!

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Level 2

How do I receive payment for an invoice, give a refund, then receive payment again on the same invoice?

I ended up using a different method based on another post I read that was a somewhat similar situation to mine:

 

1.  Collect the pay on the invoice as I normally would.

2.  For the refund, I wrote a check to the customer for the amount of the invoice using the accounts receivable account. 

3.  Then I "collected payment" on the check that was written which.

 

So essentially the customer paid money, I sent the money back to them, then they paid again when I collected payment).   I am not sure if this is the best way to handle it, but it prevents having a second invoice in QB which our website would not have a record of.  Our website only would have the original invoice that was paid, then a refund, then was paid again.  

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QuickBooks Team

How do I receive payment for an invoice, give a refund, then receive payment again on the same invoice?

Hello there, @elsalty.

 

 

 

You can create a service item for your document fees or tag fees to record your sales. Let me walk you through how.

  1. Click the Create (+) icon.
  2. Click the Sales Receipt.
  3. Under the Product/Service column, select your service item. Then, enter the other information needed.
  4. On the next line, click the blank field and select Add new.
  5. In the Product/Service information window, choose Service.
  6. Enter the Name, select a Discount given, or Expense account from the drop-down.
  7. Click Save and close.

 

Once done you can initiate a refund to your customer to return the funds to her. You'll just need to create a Credit Memo to the amount you want to return. 

 

Here's how: 

  1. Click the Customers tab, then select Create Credit Memo/Refund. From the Customer: Job drop-down, select your customer. 
  2. Enter the items you're giving credit for then select Save and Close. 
  3. You'll be routed to Available Credit, select the Give a refund then press OK. 
  4. From the Issue, a refund, input all the correct information and click OK

 

Once done refund initiated it will be shown in Credit Memo Refunded once successful.  

 

For additional information on this, I recommend the following article: Give your customer a credit or refund in QuickBooks Desktop for Windows

 

Please don't hesitate to let me know if you should have any questions about this or anything else QuickBooks related. Take care.

 

 

Highlighted
Level 2

How do I receive payment for an invoice, give a refund, then receive payment again on the same invoice?

Thanks for the response.  But is the way I did it bad for some reason?   

Highlighted
QuickBooks Team

How do I receive payment for an invoice, give a refund, then receive payment again on the same invoice?

Thanks for coming back here, elsalty.

 

The best way to handle this situation is to record a return by creating a credit memo/refund first. Although writing a check to refund a customer is part of the step, you will need the credit memo to track the sale, return, and refund correctly in QuickBooks.

 

You can read this article for the step by step process: Give your customer a credit or refund in QuickBooks Desktop for Windows.

 

Here's also a sample screenshot of what the refund check looks like:

 

 

I'm here to help if you have any follow-up questions about customer refunds or other concerns with QuickBooks Desktop. Thanks.

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