Recording a customer refund in QuickBooks Online is sometimes required when you have to return the money you get from the customer. Apart from this, it is also used to feed the details of refunds from vendors. So, if you keep records then there will be no confusion at the time of the payments. Moreover, recording a refund on different situations helps users to keep financial information up-to-date. If you’re not aware of “how to record a customer refund in QuickBooks Online” then this post will be helpful.
- 1 Steps to Record a Customer Refund in QuickBooks Online:
- 2 Refund for Foods or Services that didn’t Satisfy the Customer:
- 3 Refund a Customer’s Overpayment or Credit
- 4 FAQ’s
Steps to Record a Customer Refund in QuickBooks Online:
There are mainly two steps involved in order to record the same using the Check or Expense:
Step 1: Record the Refund for your Customer
- In the beginning, click + New button
- Next, select the Add expense, Expense, or Check
- If you are in a business view then simply go through steps to move two account in first view
- Again move back to the steps provided below:
- Choose customer to whom you want to refund using the dropdown menu from Payee
- Now, you have to choose the preferable bank account where you want to deposit your over payment within the section called “Payment account” using the drop down menu
- On the first line of the category column you have to select “Account receivable”
- After that enter the refund amount in the “Amount field”
- Once done with that then fill out the other relevant fields
- At last, save and close in order to save the changes that are made.
- To start with clicking the + new button
- Then select receive invoice payment for receive payment tab
- Now you have to select the same customer which are used for check/expense
- Next, fill out other relevant information in the required fields
- Select the checkbox for Check or Expense that you are created under section “Outstanding Transaction”
- After that, you have to verify whether your payment is equal to open balance
- At last, simply select save and close option to up to date the modifications that are made.
Refund for Foods or Services that didn’t Satisfy the Customer:
In order to refund, you simply issue a refund receipt for goods or services rather than reduce an outstanding or future balance. When the refund check is issued to your customer then it will automatically deduct the amount from your bank account and also decrease the income account if the customer didn’t return the item.
Filling out the refund receipt window is pretty similar as filling in the invoice window. Perform the below instructions to view the refund receipt window:
- The very first, click + New and then pick Give Refund or Refund receipt
- Using the dropdown menu, click Customer then choose your preferable bank from where you want to get refund.
- After that, select the Refund From using the drop-down menu and then choose the preferable bank where you want to deposit your payment for particular invoice.
- If the customer is not returning you any items so you have to choose the Return & Allowances service.
- If a customer is ready to return the item received then under the column “Product or Service”.
- Here, you have to add all the products or services returned by the customer.
Refund a Customer’s Overpayment or Credit
You are eligible to record a refund to your customer with the help of Check or Expense if it follows the key fields listed below:
- If the customer willing to redeem their open credits
- If the customer wants you to refund an accidental overpayment
- If the customer made a prepayment for order and canceled it before receiving the goods/services at their location.
You can easily record the refunds using the Check or Expense in order to reduce the bank balances and offsets the open credit, prepayment/overpayment of customers.
Hopefully, this post is useful for you as it covers all related topics frequently asked by QuickBooks users regarding how to record customer refunds in QuickBooks Online. So, there are two ways that a vendor can adopt first is to issue a Credit a payment stating that no longer owe the amount which is stated in a document. The second one is they can issue a refund check. You can easily perform these two steps with ever provided in guidelines that are quick or easy to apply. In case you find any difficulty during the process feel free to rectify your queries using the QB live chat option available or call QuickBooks support 24/7.
How do I Create a Vendor Credit in QuickBooks online?
🔹 First, select + New >> vendor credit
🔹 Select desired vendor using the vendor drop-down menu
🔹 Depending on how you require your purchases with this particular vendor, you have to categorized your details or item details
🔹 Normally this is a category product or services that you are getting a credit for
🔹 At last, you have to hit save and close.
How do we apply a Vendor Credit to a Bill?
You can apply vendor credit to any open your future bill. You can apply steps to use vendor credit:
🔹 First, you have to select + New button >> Pay bills
🔹 Choose the bill for your vendors from the list
🔹 Here, you will see available credits with this particular vendor within the Credit Applied field
🔹 After doing that, you have to complete the remaining fields like you normally do.
How to Create a Credit Memo in QuickBooks online?
Go to the Customers menu and then select Create Credit Memos/Refunds. Choose the Customer from the Customer: Job drop-down. Enter the items that you’re credit for and then select the Save & Close option.