Good morning, nichols29.
Thanks for joining us here in the Community. I'm happy to show you how to issue a refund to your customer in QuickBooks Online.
There are just a few steps to get this done. Here's how:
You'll want to start by first creating a credit memo:
1. Select + New and select Credit memo.
2. In the Customer field, select the appropriate customer.
3. Enter the Credit Memo Date, Amount, Tax, and Product/Service (This is the category, product, or service you’re getting a credit for).
(Note: If you choose an inventory item, QuickBooks will put it back into inventory. If the item is defective or if you don’t want it added back to inventory, you can make an inventory adjustment.)
4. Select Save and close.
Once the credit memo is entered, you can make the refund:
1. Select + New and select Expense.
2. In the Payee field, select or enter the desired customer.
3. In the Payment account field, select the bank the money is being refunded from.
4. In the Category field, select the Debtors account (Accounts receivable).
5. In the Amount field, enter the amount of the refund.
6. In the Tax field, select the appropriate Tax (not inclusive/exclusive of tax).
7. Select Save.
8. Next, go to + New and select Receive payment.
9. Add the Customer and select the Payment method and Deposit to.
10. Balance should be 0 as they will cancel each other out.
11. Select Save and close.
12. If you have Online Banking, go to Transactions, then Bank transactions. Then match the record you found.
The following article provides additional info about recording a customer refund in QuickBooks Online.
That will do it! Please don't hesitate to drop a comment below if you have any other questions. I'll be here to lend a hand.
