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13 replies

Rose-A
Rose-A
Level 10
June 23, 2022

It's good to see you here in the Community, Fanny Chen.

 

You can create a check affecting the Accounts Receivable (AR), then go to receive payment window and link the credit memo and check from there. This way, you can refund the transaction to the customer.

 

Here's how:
 

  1. Click the + New in the left panel and choose Check.
    Select the customer's name.
  2. From the Category column, choose Accounts Receivable.
  3. Enter the Amount and other necessary details.
  4. Hit Save and close.

 

Once saved, you can link the check and credit memo through the receive payment window.
 

 

Additionally, you can visit the following write-up: Sales and customers. This will provide you with links on how to manage your company income as well as customer-related concerns.

 

If I can be of assistance while working in QuickBooks, please let me know. I'll be more than willing to lend you a hand.

    BethFL
    April 11, 2023

    How do you apply a credit memo to a refund that was sent using QuickBooks Payments?

    JaeAnnC
    JaeAnnC
    Level 6
    April 12, 2023

    This still does not answer my question. I know how to create credit memos and apply to invoices or future invoices. My problem is the customer (a university entity) paid an invoice using his university credit card. The university asked for a refund to his card and will be issuing a check in payment for the invoice. I sent the refund through in QuickBooks Payments (original credit card processor). The customer has received the refund. I went back and took the invoice off of the original payment so I can process the check when received. I cannot find any way to tie a credit memo to the refund payment.


    I appreciate you for clarifying, Beth.

     

    Let me guide you further in linking the credit memo to the customer's payment refund in QuickBooks Online (QBO) so your accounts will stay accurate.

     

    Since a refund receipt is already created, you're unable to link the credit memo to that payment. However, you can delete the refund receipt and record the refund as a Check in QBO. Doing so reduces your bank's balance and offsets the customer's credit.

     

    To do that:

     

    1. Go to Sales and select Customers.
    2. Select the customer whom you refunded and click the refund receipt created.
    3. Go to More, click Delete, then select Yes.
    4. Next, go to + New and select Check.
    5. From the Payee dropdown, select the customer you want to refund.
    6. From the Payment account dropdown, choose the bank account where you deposited the payment.
    7. Select Accounts Receivable on the first line of the Category column.
    8. Fill in other necessary details and click Save and close.

     

    Then, you can link the credit memo to the customer's payment. You can follow the steps below.

     

    1. Go to + New and select Receive payment.
    2. Select the same customer you used for the Check when recording the refund.
    3. Fill out other fields as you see fit.
    4. Under the Outstanding Transaction section, check the box for the Check you created.
    5. Ensure the payment equals the open balance, and click Save and close.

     

    Furthermore, you can also enable auto-apply credits if you want to automatically apply them to the oldest open invoices for the same customer.

     

    Let me know if you have any follow-up questions about credit memos. I'll be around to help you anytime. Stay safe.

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