How do I refund a customer? I have Quickbooks Self Employed and I cannot figure it out.

I'm glad you chose this forum to find a solution to your refunding concerns in QuickBooks Self-Employed (QBSE), Angie. I'll walk you through the entire process of repaying a customer (depending on the scenario that fits you).

Beforehand, it's important to note that the program doesn't have a direct feature for recording customer refunds. However, we have several ways to help you handle this type of transaction. To accomplish this, please follow the steps below.

If you receive the customer payments manually in QBSE, we have two methods to track the refund in the program. We can adjust the payment amount or log the refund as an expense. 

If you prefer to enter the refund as an expense, you perform these steps:

1. Go to the Transactions menu and click Add transaction.
2. Add all the necessary details of the refund.
3. Enter the amount as a negative (-) entry in the Amount column.
4. Select a category for the refund and click Save.

However, if you received the funds through QuickBooks Payments, I recommend accessing your Merchant account to start the refund process. Here's how:

1. Sign in to your QuickBooks Payments account.
2. Select the drop-down menu beside Processing Tools, then choose Reverse a Transaction.
3. Enter the necessary details in the fields and hit Search.
4. Locate the payment you want to refund.
5. You can manually enter the amount you like to repay in the Amount field, then click Submit.
6. A pop-up (new) message will appear. You'll be asked to select Continue to process a full refund. If you'd like to submit a new amount, hit Cancel. Then, enter the different details. Select Continue after.
7. A receipt will show on the screen. Choose E-mail or Print to secure a copy of the transaction.

Further info about the process can be found in this article: Void or refund transactions in QuickBooks Payments.

Finally, I've added these resources to record your self-employed income and expenses, track mileage, prepare your Schedule C tax form, and ensure the categories selected are accurate:

• Overview Of QuickBooks Self-Employed
• Schedule C And Expense Categories In QuickBooks Solopreneur And QuickBooks Self-Employed

If you have any follow-up questions or need further assistance tracking other business transactions in QBSE, please don't hesitate to reach out. I'm always here to help and would be more than happy to provide additional support. So feel free to click the Reply button any time, and I'll get back to you as soon as possible.

1. Go to the Transactions menu and click Add transaction.
2. Add all the necessary details of the refund.
3. Enter the amount as a negative (-) entry in the Amount column.
4. Select a category for the refund and click Save.

@CharleneMaeF your first step does not exist in QBO anymore. When you say "Go to the Transactions Menu" there is no "Add Transaction" option. Here are the transactions available: 

• Invoice

• Payment

• Estimate

• Payment Link

• Sales Receipt

• Credit Memo

• Delayed Charge

• Statement

Which of these options would create a DEBIT to which the overpayment credit can be applied?

I'm delighted to see you here, PBJ10.

I recognize you've been looking for ways to handle customer refunds and overpayments. I also see that you have previously raised a similar concern. To provide you with a comprehensive answer, I'm directing you to a response from my colleague that addresses how to manage overpayment issues in QuickBooks Online. This will offer you detailed guidance and helpful steps to follow.

Additionally, please know that my colleague is referring to these steps on how to add transactions in QuickBooks Self-Employed. See illustration below:

I've included these resources for additional information about customer credits:

• Record a customer refund in QuickBooks Online
• Create and apply credit memos or delayed credits in QuickBooks Online

Let me know if you still have other concerns about your customer refunds and credits, I'll right back.