Is there a way to issue a partial refund to a client for a transaction that was initiated outside of QuickBooks (ie. not a payment made on an QB invoice)?

Thank you for your post, Ahargusphoto. Yes,  issuing a partial refund for a transaction initiated outside of QuickBooks is possible in QuickBooks Online (QBO). Allow me to elaborate on it in detail.

Since the transaction didn't originate inside QuickBooks, we can issue a refund receipt in QBO for record-keeping purposes. It will allow you to document the refund in your QuickBooks account, even though the original payment did not come through the QuickBooks invoicing system. I'll guide you through the process.

Here's how:

1. Click on + New, then go to Refund receipt under the Customer section.
2. Enter the name of the customer.
3. Select a bank from the Refund field where you take the money from.
4. Complete other fields, then hit Save and close.

It's important to note that creating a Refund receipt in QuickBooks Online doesn't automatically process the refund to the customer. You'll still need to issue the refund through your preferred payment method, such as writing a check, initiating a bank transfer, or processing a refund through a third-party payment processor.

You can visit our QuickBooks App Store website to look for a third-party app for payment processors from the CATEGORIES section.

Moreover, let me share this resource on how to void or refund customer payments you process in QBO. It also includes some other ways how to give partial refunds. 

Drop your questions below if you have concerns about payments in QBO. If you'd like assistance with other accounting entries, paychecks, or any other QuickBooks tasks, let me know, and I'll guide you through the steps and provide detailed instructions.