The QuickBooks is secure accounting software that will assist your clients in collecting your payments. Often, therefore, you might need to return the cash you got from a client and enter a refund on QuickBooks Online. You need to refund your customer’s money if your customer is not happy with the goods or service delivered, or if a customer makes an overpayment. We will cover different times in this post where you will need to refund the money of your customer while ensuring that your books are up to date.
You can contact our Quickbooks service if you are not sure how to enter a refund on QuickBooks Online and need some other Quickbooks-related assistance.
Refund for products or services that have not fulfilled the customer
In this case, if the consumer is not happy with the product or service provided for which the payment has already been made, when a customer asks for a refund, you will use the refund receipt. To stop a double refund, make sure you haven’t already entered a credit note. To enter a refund in QuickBooks, follow the instructions below to:
- Select+New in the very first place.
- Now pick Receipt of Refund or Offer Refund.
- Then, pick the customer from the Customer drop-down list that you want to refund the money to.
- To proceed further, pick Refund from the drop-down menu and also select the bank you have deposited for the invoice payment.
- Include in the Product or Service all returned goods or refused services
- Also, fill in all the data accordingly, such as quantity, cost, number, tax, and other fields.
- Lastly, choose Save and Close.
How to document overpayment recovery in QuickBooks?
Here are the instances where you will have to refund QuickBooks vendor overpayment and enter a refund in the QuickBooks application:
- When your clients want their open end credits to be redeemed
- If a consumer has made a prepaid payment for an order, but before receiving the products or services, the order is cancelled.
- In the event of an unintended payment being made from the end of the client.
When you report the reimbursement using a cheque or expense, it decreases the balance of your bank and offsets the open credit, overpayment, or prepayment of the consumer. Review the instructions below to illustrate how to record a QuickBooks Desktop vendor credit:
Phase 1: Record Your Customer’s Refund
- Follow the instructions mentioned below to record a refund in the QuickBooks:
- Select + New, firstly.
- Choose Expense, Add Fee, or Cheque then.
- Pick the customer you would like to refund from the Payee drop-down list,
- Then, from the Payment account drop-down screen, pick the bank account where you deposited the overpayment.
- You need to pick Accounts Receivable from the first line of the Category column.
- Enter the percentage of the refund into the amount
- Complete other important fields and choose Save and Close.
How can a refund receipt be created?
So now, in QuickBooks Online, you are aware of how to record a seller’s credit card refund, let’s review the steps to produce a refund receipt:
- Pick the Refund Receipt from the + menu to open the new refund receipt.
- Choose a client from the drop-down list in the same browser.
- Then, you must pick a Payment Method from the Suggestions drop-down menu.
- Select an account from which you want the refund to come from.
- Select the product or service for which a refund is given from inside the PRODUCT/SERVICE column.
- After that finalize your receipt by verifying if the size, cheque number, and other details are correctly listed.
- Select Print Cheque and allow the Print Later option
- To finish the job, press Save and Close.
In QuickBooks, the measures mentioned in this post will help you with how to document bank refunds. Give us a call on our Quickbooks support number if you are not happy with the steps and need professional guidance. Our experts will instruct you on how to enter the refund in QuickBooks when making a refund to your customers. You can get help by dropping us an email (email@example.com). However, you can visit our website at www.quickbooksupport.net for more QuickBooks-relevant products.