Why when we are trying to issue a refund for a customer from inside the invoice, there is no refund option anymore?

Hello @Russ1234,

Make sure you're in the correct place, either on the Sales Receipt or Invoice screen, as refunds are generally handled from these screens or through the customer payment section. Sometimes, the settings for payment processing may be disabled. To check, go to the Gear Icon > Account and Settings > Payments and make sure your payment processing options are turned on.

If the option is still missing, you can manually issue a refund by creating a Credit Memo. To do this, go to the + New button > Credit Memo, select the customer, and enter the relevant details to apply the refund.

It should help

Welcome to the Community forum, @Russ1234.

Let me share some insights regarding your concern about processing a refund for a customer from inside the invoice in QuickBooks Online (QBO).

The feature to process refunds directly within the invoice is not yet available in QBO, which is why there is no button for it. Instead, we can manually create a refund receipt from the menu, rather than opening the payment from the invoice page. It's important to note that this is for recording purposes only. Let me guide you through the process:

1. Click the + New button.
2. Select Refund receipt or Give refund.
3. Click on the Customer dropdown, then choose the customer you want to refund.
4. Choose the bank from the Refund From dropdown where the payment for the invoice was deposited.
5. Add all products or services the customer returned in the Product/Service column.
6. Fill the date, quantity, rate, amount, sales tax, and other fields accordingly, then select Save and close.

Note: For a partial refund, only add the items or amount you want to refund.

Also, if you need to refund your customer's money for any reason, here's how to record a refund based on various scenarios:

• Customer refund for a paid invoice
• Refund for goods or services that didn't satisfy the customer
• Refund for a customer's overpayment or credit

You can check this article for more detailed steps on how to process a refund in QBO: Record a customer refund in QuickBooks Online

Moreover, you can check these references about working with ACH returns/disputes that you can use in the future:

• Void or refund transactions in QuickBooks Payments
• Fix rejected ACH payments or fees in QuickBooks Payments.

Please notify me if you have another goal in mind or if you have more queries regarding issuing a refund in QBO. I'll provide you with the necessary assistance may require. Keep safe and enjoy the rest of the week, Russ1234!

@Shania_C following your instructions to generate a Refund Receipt creates a CREDIT transaction in Quickbooks. This means if the customer overpaid $30 a month ago and the user creates a corresponding refund receipt for $30 there is now a $60 CREDIT on the customer's account.

How is the customer supposed to create a $30 DEBIT to which the original $30 overpayment can be applied and correctly reflect the $0 balance on the account?

I appreciate your efforts in replicating the steps provided by my colleague about processing a refund, @PBJ10. Let me further help you by outlining the necessary instructions for recording the transactions accurately.

Please know that you can record a refund receipt if you need to reimburse the customer for returning the product. Since your customer overpaid an amount, you can create a check posted to accounts receivable instead.

Before doing so, it's necessary to delete the created refund receipt first to avoid duplicates. Once done, follow these steps below:

1. Go to + New, then click Check.
2. Choose your payee from the Payee ▼ dropdown menu.
3. From the Bank Account ▼ dropdown, select the account you want the money to come from.
4. Fill out the rest of the fields accordingly.
5. Select Save and close.

After that, we'll have to link it to your customer's open credit to close the transaction.

1. Go to + New and click Receive payment.
2. Add the Customer and select the Payment method and Deposit to and where you want to deposit the money.
3. Tick the checkboxes of the check and open credit. Balance should be 0 as they will cancel each other out.
4. Hit Save and close.
   
   

Once everything is in place, you may want to create and send a customer statement to get reminded about upcoming deadlines and updated balances.

Whenever other issues pop up or you have questions about processing a refund, feel free to circle back. I'm just a post away and here to help.