From the Received from the drop-down, choose the Customer.Go to the Customer menu, then select Receive Payments.Let's now link the credit memo to the check to avoid getting open credit memos and unapplied refund checks. This ensures that QuickBooks will account for the credit and refund correctly. Leave Accounts Receivable as of the account in the detail area of the refund check.Open the credit memo you want to use for the refund.Go to Customers, then select Create Credit Memos/Refunds.After creating that, you'll need to create a refund check to complete the process. Let me share with you the correct way of recording a refund on QuickBooks Desktop.Ĭreating a Credit Memo for the refund is the most reliable path. Thank you for bringing this to our attention so that we can deal with this quickly, appreciate you for providing the detailed concern and the effort you've done in applying for the refund. Record a customer refund in QuickBooks Online.Create and apply credit memos or delayed credits in QuickBooks Online.Let me share these articles for more details on how to record a refund or apply a credit memo: Make sure to check the box of the unapplied Credit memo in the Credits section.Click the 1 payment made link under the PAID status.Let's open the invoice again and redo the process: I also checked the screenshots and it looks like the Credit Memo was not applied successfully as a payment to the original invoice. Otherwise, applying the credit memo as a payment to the original invoice will still leave a negative balance. If you want to keep the original payment in the record, you can directly create a refund receipt or check to refund the customer instead. This can be the reason why there's a negative balance in the customer's account. Have a great rest of the weekend.Ĭredit memo is usually created if you want to use a credit as a payment to a future invoice.Īs you mentioned and shown in the screenshot, the initial deposit is still recorded in your account. Should you have any other concerns or follow-up questions, you can always find me here. In case you'll need to track all the invoices that are due on a particular day, we can customize your Transaction Detail By Account report. Once done, you can now perform Receive payment using the credit memo that you've created. Click Save and close, then select Yes to confirm the changes.
Go to the Customers tab, then select the appropriate customer.This way, we'll be able to close the invoice and zero out the customer's balance. We can open the credit memo and edit the amount. Please know that we only need to create a credit memo for the remaining balance of the invoice since you've already issued a refund for the initial deposit. The program prompts you that warning because you've entered the whole amount of the invoice in the credit memo. Never use two different methods to manage the same information.I'll help you in handling your customer balance. Or, you might simply want to write a check as a Refund of Income to them, and not use a Credit Memo at all. 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. 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 have One Specific Payment that resulted in Too Much Money, then you issue the refund from there. "If I try to issue the credit from the payments screen, the available credits show at the bottom, but cannot "refund check". You don't do Both for the same overpayment. 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 seem to trying to do the same thing two different ways. "I do go back to the Previous Payment Screen" "I issued the refund from the Credit Memo and from Prepaid as an Item."