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Level 1

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

I used the methods described and the customer balances went to zero. However, the AR 30/60/90 report now shows the customer as having an account balance due equal to the amount of the check. How do I get the AR report and the customer record to match?QB Report Issue.PNG

Highlighted
Level 1

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

QB Report Issue.PNG


I can get the customer account to balance OK using the method, but the AR 30/60/90 report will now show the customer has having a balance due equal to the amount of the refund (or check). How does one get the AR report to accurately show the correct balance. Yes, I did refresh the report. 



 

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Level 15

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

"How do I get the AR report and the customer record to match?"

 

If you have an overpayment from a Payment, you link the Refund by using opening their original payment and applying it to the Check, which is listed as if that is an open invoice.

 

If you have an overpayment from a Credit Memo but you created the check manually, and the check lists AR, the use the Receive Payment screen. Do not enter an amount; there is no New Money to enter. Here you see their Refund Check listed, and the amount that is an Available Credit; use the Icon on the ribbon at the top to Apply Credits.

Highlighted
Level 1

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

Thank you!

This has made life so much easier for our not-for-profit.

 

Now here's a follow-up:

 

So, a "customer" purchased something on behalf of the organization.

We have reimbursed them by issuing a credit and writing a check, linking them per your advice.

 

How do we now setup and pay a bill showing the original purchase from the original vendor?

Meaning: we need to record the line items correctly (product added to equity, shipping, etc.) and although the bill was paid, the organization did not send any money to the vendor.

 

Of course, if this whole process is backwards, please do let me know!

We're trying to stop our members spending on behalf of the org, but sometimes they just go ahead and do it anyway.

 

Thank you :)

Highlighted
QuickBooks Team

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

Greetings, @ DunedinMusicSociety.

 

I can share some information on how you can set up billable expense in QuickBooks Desktop.

 

Depending on the set up or agreement you have with your  vendor, here's how you can process and record vendor refund in QuickBooks Desktop.

  • The vendor sends you a refund check for a bill that is already paid.
    1. Record a Deposit of the vendor check.
    2. Record a Bill Credit for the refunded amount.
    3. Link the deposit to the Bill Credit.
  • The vendor sends you a refund check for returned inventory items.
    1. Record a Deposit of the vendor check.
    2. Record a Bill Credit for the returned items.
    3. Link the deposit to the Bill Credit.
  • The vendor sends a refund check that is not related to an existing bill.
    1. Record a Deposit of the vendor check.
    2. Record a Bill Credit for the amount of the Vendor Check.
    3. Link the Deposit to the Bill Credit.
  • A vendor sends a refund check on behalf of the original Vendor.
    1. Create a deposit for the vendor who sent the refund check.
    2. Create a Bill for the Amount of the Deposit and apply it to the Deposit.
    3. Create a Credit for the Original Vendor.
    4. Create a Bill for the Amount of the Credit affecting the Wash Account and apply the Bill to the Credit.
  • The vendor sends you the refund as a credit card credit.

Keep in touch with us here in the Community if you have other question about creating credit memo for your customers and processing vendor refunds. I’ll be here should you need further assistance.

Highlighted
Level 1

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

Hi there, 

 

Thanks for sharing this. I am using QBO and cannot resolve this issue. Can you please assist?

Highlighted
QuickBooks Team

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

Hello there, @SHarrisFinancial,

 

I'd be glad to provide you the steps on how to write a refund check in QuickBooks Online.

 

You'll first need to create a bank deposit using the Accounts Payable so you can link the vendor credit to the deposit.

 

Here's how:

  1. Click the Plus (+) icon.
  2. Under Other, select Bank Deposit.
  3. Select the Bank Account where you want to deposit the funds.
  4. Scroll down and go to the Add funds to this deposit section.
  5. Select the name of the vendor in the Received from column.
  6. Pick Accounts Payable in the Account field.
  7. Enter other details in this table.
    createbankdeposit.PNG
  8. Click Save and close.

Then, link the deposit with the vendor credit.

  1. Click the Plus (+) icon.
  2. Select Check under Vendors.
  3. Select the vendor from the Payee drop-down list.
  4. Add the Deposit and Unapplied Payment that appears on the left side in the Check page.
  5. Click Print check to print it.
    linkdepositandvendorcredit.PNG
  6. Then, Save and close.

For your guidance with the solution above, you can go through this article: Manage vendor credits.

 

To learn more about printing checks, please check this out: How to print checks.

 

If you need assistance with this, just leave a comment below. I'd be glad to lend a hand.

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Level 1

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

Changing the account, on the check I'd written, from sales to receivables did the trick, thanks!

Highlighted
Level 2

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

It's weird. Many things that are talked about in this thread are simply not on my screen. What I want should be way simpler:
1. Customer A: bought several products for 5000 USD.

2. It is decided that part of their purchase will be reimbursed, 1000 USD.

3. I create a Credit Note for 1000 USD and sent it to them. They decide they want a refund.

4. There is now -1000 USD on the customer account.

5. I transfer them 1000 USD.

6. Why does Quickbooks refuse to give the option to connect the bank transaction of 1000 USD to the Credit note that was written. It even says in the top right 'Amount to refund'. That single step would get their balance correct again. Why is it that only Refund Checks can be connected with Bank Transactions.

 

I've tried getting it back to 0 by also writing a Refund Receipt and subtracting the refund amount from the original payment of 5000 USD. The problem is that than the amount of 1000 USD is subtracted twice (or even thrice?) from the Product Account. Besides it is not really a truthful representation.

 

In the past I have circumvented this problem by just writing Refund Checks, which result in correct bookings, but now a customer wants a document that states 'Credit Note'. So now I just want to do it correctly. 

 

If I use the original tutorial it falls apart with Step 3: From the Received from drop-down, select the Customer. Then, select the Discounts and Credits Icon.

 

There is no such thing as a Discounts and Credits Icon?

Highlighted
Level 2

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

It's weird. Many things that are talked about in this thread are simply not on my screen. What I want should be way simpler:
1. Customer A: bought several products for 5000 USD.

2. It is decided that part of their purchase will be reimbursed, 1000 USD.

3. I create a Credit Note for 1000 USD and sent it to them. They decide they want a refund.

4. There is now -1000 USD on the customer account.

5. I transfer them 1000 USD.

6. Why does Quickbooks refuse to give the option to connect the bank transaction of 1000 USD to the Credit note that was written. It even says in the top right 'Amount to refund'. That single step would get their balance correct again. Why is it that only Refund Checks can be connected with Bank Transactions.

 

I've tried getting it back to 0 by also writing a Refund Receipt and subtracting the refund amount from the original payment of 5000 USD. The problem is that than the amount of 1000 USD is subtracted twice (or even thrice?) from the Product Account. Besides it is not really a truthful representation.

 

In the past I have circumvented this problem by just writing Refund Checks, which result in correct bookings, but now a customer wants a document that states 'Credit Note'. So now I just want to do it correctly. 

 

If I use the original tutorial it falls apart with Step 3: From the Received from drop-down, select the Customer. Then, select the Discounts and Credits Icon.

 

There is no such thing as a Discounts and Credits Icon?

Highlighted
QuickBooks Team

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

Hello, @LaurensPP.

 

When you create a credit memo, you have the option to apply it to an invoice or give a refund. Let me guide you on how it works.

 

Here's how to create credit memo:

  1. Click the Customers menu.
  2. Choose to Create Credit Memo.
  3. Select the name of the Customer: Job.
  4. Enter the credit memo details.
  5. Click Save and Close.

Once the credit memo is created, you can now write a check with the total amount of the refund.

 

Lastly, to avoid getting open credit memos and unapplied refund checks, let's link the credit memo to the check.  

You can refer to this article for more detailed steps: Give your customer credit or refund in QuickBooks Desktop for Windows.

 

Fill me in if you have other questions. I'm always here to help.

Highlighted
Level 2

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

Thanks for the reply. Problem is that my Quickbooks looks nothing like yours and many options are not available on my client. We're running the Quickbooks Essentials. I presumed the software is generally the same?

Highlighted
QuickBooks Team

I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

I appreciate you getting back to us, @LaurensPP.

 

The steps provided by my colleague above is for QuickBooks Desktop (QBDT). And I'd be happy to walk you through the steps on how to get this done in QuickBooks Online (QBO).

 

To create a credit memo, here's how:

 

  1. Click the Plus (+) icon.
  2. Select Credit Memo.
  3. Choose the customer in the Customer drop-down.
  4. Fill out the necessary information.
  5. Click Save and close.1.PNG

Once done, please follow the steps below to create a check with the total amount of the refund:

 

  1. Click the Plus (+) icon.
  2. Select Check.
  3. Choose the payee, then select the appropriate bank account from the drop-down.
  4. In the Category drop-down, select Accounts Receivable.
  5. Enter the credit memo numbers in the Description field.
  6. In the Amount field, enter the amount of the refund.
  7. Select the customer you want to refund from the Customer/Project drop-down.
  8. Click Save and close.2.PNG

Then, here's how to link the credit memo to the check:

 

  1. From the left panel, click Sales.
  2. Select Customers.
  3. Choose the appropriate customer from the list.
  4. Then click Receive payment from the Action column.3.PNG
  5. In the Outstanding Transactions section, select the Check.
  6. Choose the Credit Memos from the Credit section.
  7. Click Save and close.4.PNG

As always, you can visit our QuickBooks Community help website in case you need tips and related articles in the future.

 

Feel free to leave a comment below if you have any other questions with QuickBooks. We're always here to help.

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