Refund a credit memo.

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.

A credit memo is a document which shows the amount that is due to a customer for a full or partial refund. The amount can be applied towards another order, or refunded to the customer after the original purchase. Before a credit memo can be printed, it must first be generated for the order.   MyAtriumHealth

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

Thanks for chiming in on this thread, Beth.

I'll lead you through the steps on how to apply a credit memo refund from QuickBooks Payments to your customer's invoice in QuickBooks Online (QBO).

Instead of a refund, some customers would rather receive a credit to lower the balance on their subsequent invoice. To do that:

1. Go to + New and select Credit memo.
2. Select a customer's name in the Customer dropdown.
3. Enter the credit memo details, such as the date and the amount. You can also create a custom credit service item to easily add it to credit memos as a single line item. 
4. Select Save and close.

To apply the credit memo to an invoice, please refer to the steps in this article: Create and apply credit memos or delayed credits in QuickBooks Online.

Additionally, you'll be interested in customizing your sales forms in QBO. This way, they'll appear professional to your customers, and you'll be able to include information relevant to your business.

Keep in touch if you need additional assistance applying credit memos in QBO. I'm always here to keep an eye out for your queries. Have a nice day.

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.

Thank you for your reply. This of course works. But it would be wonderful if Quickbooks would remove the payment from the invoice when the refund is made in the system instead of having to use a work around.

hello,  after i linked the check and credit memo through the receive payment window, Cr Memo is still unapplied, shows as still not refunded.  please advise

after i linked the check and credit memo through the receive payment window, Cr Memo status is still shows as  unapplied .  please advise

I'm here to ensure that you successfully applied your credit memo to your check, RxCity. 

To begin, it's important to ensure first that the invoice is already in its Received status. Afterward, you can create a Credit Memo and Check where you'll link it in the receive payments window. Since you've mentioned that you already linked the two of them yet the status of the credit memo is still Unapplied, kindly make sure that you entered the right category in your Check transaction. 

Here's how: 

Step 1: Ensure that the specific invoice is already paid.

Step 2: Check if you correctly input the right category for your Check entry.

1. Go to the Sales menu located at the left navigation panel and choose Customers. 
2. Type the name of the customer in the search bar and click the result. 
3. In the Check transaction, click the Edit option under the Action column.
4. Within the Category details section, ensure to put the right category in your category dropdown such as entering the Accounts Receivable (A/R). 
5. Once done, click Save and close. 

Step 3: Link your check and your credit memo

1. Go to the +New button located at the upper left corner and click the Receive Payment option. 
2. Under the Customer dropdown, choose the right customer. 
3. You'll see in the Outstanding Transaction section the Check entry you've created.
4. In the Credit section, you'll see the Credit Memo transaction.
5. You can now link them by ensuring that the two transactions are ticked.
6. Once done, you can now Save and close.
7. After closing, you'll see in your customer's profile that the credit memo is already applied to the check.

Furthermore, you may also want to learn more about customizing your sales forms in case you want to personalize and add some specific info: Customize invoices, estimates, and sales receipts in QuickBooks Online.

We'll be here if you need further assistance as you're using QBO. Just leave them in the comment section, and We'll be there to help.

I came here to research a similar issue and your structured response provided the nugget of wisdom I needed.  Thank you.

I'm so glad to see you found the answers you were looking for here in the Community, jdharr. You know where to come if you ever need a hand again in the future. Take care!

I have a customer who paid with a credit card, returned the item and purchase another item.  I created a credit memo for the return then invoiced the other item. It has left him with a credit for 6.70.  I gave him the 6.70 in cash. How do I clear the 6.70 credit off the credit memo?