I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

kikiyumo · ‎December 10, 2018

I tried printing the check, it gave the check a number but didn't remove the credit from the customers account. how do i show that the customer has received the refund, and that it is not available as a credit for future orders. thank you.

the credit was actually issued back onto the customers credit card. but its only giving me the option to create a check to record the refund, is there a way to show that it was credited to their credit card directly from my account. it was done using a square reader. thank you.

SkinnyRaven · ‎December 10, 2018

You write the refund check on the same account as your merchant services deposit account. Next you link the refund to the credit memo.

Although you have recorded both the credit memo and the check, you still need to connect the check to the credit memo so that QuickBooks can track the transaction correctly. You use the Receive Payments window to connect the two.

To connect the refund check to the credit memo:
1. 1 Choose Customers > Receive Payments.
2. 2 Choose the customer to whom you just wrote the refund check. You'll see the amount of the credit
  
  included in the Existing Credits field and the refund check in the bottom section of the window.
3. 3 Select the Apply Existing Credits checkbox.
4. 4 On the Refund Chk line, enter the check amount in the Payment column, if not already entered by QuickBooks, and then click OK. If you now choose Customers > Create Credit Memos/Refunds to display the credit memo you just entered and click Tx History, you should see the refund check listed in the Transaction History - Credit memo window.

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SkinnyRaven · ‎December 10, 2018

You write the refund check on the same account as your merchant services deposit account. Next you link the refund to the credit memo.

Although you have recorded both the credit memo and the check, you still need to connect the check to the credit memo so that QuickBooks can track the transaction correctly. You use the Receive Payments window to connect the two.

To connect the refund check to the credit memo:
1. 1 Choose Customers > Receive Payments.
2. 2 Choose the customer to whom you just wrote the refund check. You'll see the amount of the credit
  
  included in the Existing Credits field and the refund check in the bottom section of the window.
3. 3 Select the Apply Existing Credits checkbox.
4. 4 On the Refund Chk line, enter the check amount in the Payment column, if not already entered by QuickBooks, and then click OK. If you now choose Customers > Create Credit Memos/Refunds to display the credit memo you just entered and click Tx History, you should see the refund check listed in the Transaction History - Credit memo window.

kikiyumo · ‎December 10, 2018

Hey, thank you. i might be doing this wrong. but when i click on payments, the check does not appear as one of the line items, it shows nothing when i select the customer. the check is already recorded under "recent transactions" right above the recording of the credit memo. but it still shows "open balance" amount under summary.

SkinnyRaven · ‎December 10, 2018

You used the refund option from the credit memo or just wrote a check? It will not show as a line item, look for apply existing credits at the bottom right.

kikiyumo · ‎December 10, 2018

thanks. yeah i hit the refund button at the top of the screen when i created a credit memo. i do see the apply credit button at the bottom. if i check the "apply existing credits" button and click save nothing happens. it shows saved but it doesn't appear in the left hand payments column and the summary still shows "open balance"

SkinnyRaven · ‎December 10, 2018

Go back to receive payments and confirm the credit no longer exists. If it does recheck it and confirm the amount in the payment column as in step #4

kikiyumo · ‎December 10, 2018

the credit still does exist. the refund chk line does not appear, so i can't enter any payment info in that column. down below it shows that an existing credit is still available, i can click on apply existing credits but there isn't anything to apply them to.

SkinnyRaven · ‎December 10, 2018

Check the customer account you should have 2 equal negative amounts, 1 for the credit memo and 1 for the refund check. Also review the expense account on the refund check and confirm it is accounts receivable.

kikiyumo · ‎December 10, 2018

thanks. i do see the two equal negative amounts as you said. i went into the refund check and it is from the bank account. i tried to attach it to accounts receivable, but it said that is the wrong type of account, looks like it has to be a bank account

kikiyumo · ‎December 10, 2018

I'm sorry, wrong account. i got the correct account changed to accounts receivable/it was originally on sales. everything looks good now. thank you so much for your help.

SkinnyRaven · ‎December 10, 2018

You're welcome.

rruecker · ‎December 10, 2018

I am having the same issue but when I try to link the credit memo to the check it doesn't show the check and tried to apply the credit to new invoices for that customer. I did check the account on the refund check and it is accounts receivable.

SkinnyRaven · ‎December 10, 2018

You did something wrong on the check if it doesn't show.

CRCInc · ‎December 10, 2018

I am havaing the same issue. I cannot link the credit memo to the check. I created the check from the credit memo section. When I try to go to Customer Receive Payments, I cannot use the discounts and credit to apply the payment and zero out the account.

qbteachmt · ‎December 10, 2018

A check to a customer either is a refund directly from an income/expense account entry on the Expense tab or an Item listed on the Items tab. For AR refunds, you issue the refund from the Payment screen where you have an overpaid condition; or, from the Credit Memo, at the top, the icon to Refund this creates a Check that lists AR on the expenses tab.

If you issued the AR check manually, and you have a credit memo, you link them using Receive Payment but leave the amount here as 0.

CRCInc · ‎December 10, 2018

I am using QB 2015 and if I do the transaction through Customers Receive Payments, I see the available credits but no place to "issue check".

qbteachmt · ‎December 10, 2018

"I am using QB 2015 and if I do the transaction through Customers Receive Payments, I see the available credits but no place to "issue check"."

You only see this, bottom left, three radio buttons, Because an out of balance condition exists = overpayment from this payment now on hand.

Otherwise, if this payment paid whatever was owed, there is nothing seen bottom left; it is Blank.

If you need to issue a refund NOT from an overpaid condition, then you decide how you intend to do with for the data entry that meets your needs:

As A Check.

Listing on the expense tab or items tab.

Or, from a Credit Memo that you need to create, where you will list Items. A credit memo would be needed, for example, when Sales Taxes are involved.

qbteachmt · ‎December 10, 2018

@CLCInc If you see a credit is available, Find and Go To whatever is creating that credit; it might be a Previous Payment screen or a Prior Credit Memo.

CRCInc · ‎December 10, 2018

I issued the refund from the Credit Memo and from Prepaid as an Item. I do go back to the Previous Payment Screen and when I press issue refund check, it will change the entire transaction as it was from four months earlier and the credits have been applied to fees. I can see the applied credits....do I change the date and the amount to match the overpayment? That doesn't seem right as it will change my applied credits. If I try to issue the credit from the payments screen, the available credits show at the bottom, but cannot "refund check".

qbteachmt · ‎December 10, 2018

"I issued the refund from the Credit Memo and from Prepaid as an Item."

Then you are Done.

"I do go back to the Previous Payment Screen"

You don't Also do this. You don't do Both. You seem to trying to do the same thing two different ways. Either there already is a Credit Memo for you to issue a refund from the top; or, you already have funds on hand as negative AR from an Overpayment condition and don't also need or use Credit Memo. You don't do Both for the same overpayment.

"If I try to issue the credit from the payments screen, the available credits show at the bottom, but cannot "refund check".

If you have One Specific Payment that resulted in Too Much Money, then you issue the refund from there. Then, Do Nothing Else.

If you have No Balance for that customer as Negative AR, and you intend to issue them a refund, then you control how to do this. If you decide to do it with a Credit Memo, you use the Credit Memo function and issue the refund check from the icon at the top, and Do Nothing Else. Or, you might simply want to write a check as a Refund of Income to them, and not use a Credit Memo at all.

Never use two different methods to manage the same information.

qbteachmt · ‎December 10, 2018

Let me try one more time:

A negative AR balance can be Refunded. This can be done Manually, by listing AR for that customer name on the Expenses tab of the check to that customer. Then, in Receive Payment, Do not put an Amount; you are receiving 0 payment. Your check as AR will be listed as if it is an Open Charge and you can Apply the credit from here. Using a Credit memo to issue this refund or issuing from an overpayment Creates the Same Check as I just described: AR.

CRCInc · ‎December 10, 2018

I get it. I have created the check manually and AR is on the check. However, the check as AR is not listing as an open charge so that the credit can be applied. Perhaps my Item is not mapped correctly?

CRCInc · ‎December 10, 2018

Thank you for your responses. I didn't make it clear that I was not doing both at the same time, I was trying to try both different ways. Will opt for using Credit Memo and using Prepaid as an Item.

qbteachmt · ‎December 10, 2018

The check either refunds Liability, or uses the Prepaid Item; or, is created from a Credit memo.

"the check as AR is not listing as an open charge so that the credit can be applied."

Perhaps it already is linked to something or is applied already.

Like this:

You issued a refund check from a Credit Memo you just created, and also still have a Negative on hand from using Receive Payment months earlier, when no open invoices ever existed = now you have this Twice. That means the original Payment screen is where that credit is coming from. You would not also create a new Credit Memo. You simply issue that check as AR so that you can open the Original payment and link it to the Refund.

qbteachmt · ‎December 10, 2018

"but when I try to link the credit memo to the check it doesn't show the check and tried to apply the credit to new invoices for that customer. I did check the account on the refund check and it is accounts receivable."

If the check was not created From the credit memo, as long as the check shows AR, you can use Receive Payment (leave the amount to Receive as 0) and apply them, here.

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I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.