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brian20
Level 1

We created an invoice with a deposit paid by credit card. Customer changed his mind and had the payment reversed. How do you refund the deposit and remove the invoice?

 
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Charies_M
Moderator

We created an invoice with a deposit paid by credit card. Customer changed his mind and had the payment reversed. How do you refund the deposit and remove the invoice?

I'm glad to have you here in the Community, brian20.

 

It's my pleasure walk you through the whole process of refunding a deposit in QuickBooks Online (QBO).

 

To refund the deposit to an invoice, you can reverse the deposit by giving the customer a refund and applying a credit. 

 

Let's start with creating a credit memo. I'll show you how below:

  1. Click the Plus icon (+).
  2. Under Customers, select Credit Memo.
  3. Select the name of the Customer on your invoice.
  4. Enter the total of the invoice, including the deposit in the Amount field.
  5. Select Save and close.

Once done creating the credit memo, you can now issue a check to refund the deposit.

 

Here's how:

  1. Select the Plus icon.
  2. Under Vendors, select Check.
  3. Select the customer in the Payee field.
  4. Under Account details, select Accounts Receivable from the Account field drop-down list.
  5. Enter the amount of the deposit received in the Amount field.
  6. Select Save and close.

Now you're ready to record a payment.

 

Here's how:

  1. Select the Plus icon (+).
  2. Under Customers, choose Receive Payment.
  3. Select the name of the Customer on your invoice.
  4. Select the checkboxes for the credit memo and invoice in the Outstanding Transactions section.
  5. Select Save and close.

The payment is recorded and the deposit refund is completed.

 

I've got you an article to learn more about refunding a deposit in QuickBooks Online: How to refund a deposit and close an invoice.

 

There you have it. I'm here anytime you need more assistance with this or any other questions about QuickBooks. I'd be happy to help you out.

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