Create QuickBooks Refund Receipt for Customers – A Complete Guide

QuickBooks payments make the processing of credit card payments straightforward. It ensures that your accounting is fully accurate. Sometimes, your customer may need to return the product they’ve purchased and ask for a refund. So, you must know about QuickBooks refund receipt. It is easy to process a refund in both QuickBooks Online and QuickBooks Desktop.

You just need to use the Refund Receipt option in QuickBooks. To record a customer refund, choose Credit Memo and enter the memo date, amount, tax, and product. Keep reading to find out how to refund receipts in QuickBooks Online and Desktop.

How to Refund Sales Receipt in QuickBooks Online?

Creating a QuickBooks refund receipt is essential to make a refund for the receipt into your QB account. Refund your customer’s credit card payment through the refund receipt as follows.

  1. In QuickBooks Online, tap ‘+ New.’
  2. Now, tap the ‘Refund receipt’ option.
  3. Choose the customer to whom the amount needs to be refunded from the ‘Customer’ dropdown.
  4. Input the details in relevant fields. Use the data from the original sales to fill out the details.
  5. In the ‘Payment method,’ choose ‘Credit Card’ to credit back the customer’s credit card.
  6. If you want to credit back your customer’s bank account, choose ‘Bank’ in the Payment Method.
  7. Choose the payment method and account you wish to refund your customer from in the ‘Refund from.’
  8. Finally, tap ‘Save and Close.’

Also Read: QuickBooks Simple Start for Small Business

How to refund paid invoice

If the QBO refund receipt is a paid invoice, there are other steps to follow.

  1. In QuickBooks Online, tap ‘+ New.’
  2. After that, click the ‘Refund receipt’ option.
  3. Pick the customer to whom the amount needs to be refunded from the ‘Customer’ dropdown.
  4. Input the details in their fields. Use the data from the original sales to type in the details.
  5. Select the amount and payment method you want to refund a customer from.
  6. Finally, tap ‘Save and Close.’

How to Refund Receipt in QuickBooks Online If Invoice Has Been Paid?

This is also a common scenario when you need to refund receipts in case the invoice has been paid. Follow these simple steps.

  1. Choose the ‘+ New’ button and tap ‘Credit Note.’
  2. Choose the suitable customer in the ‘Customer’ field.
  3. Now, write the ‘Amount,’ ‘Credit Note Date,’ ‘Product/Service,’ and ‘Tax.’
  4. Finally, hit ‘Save and Close.’

Also Read: QuickBooks Online VS Desktop

Can Your Refund Receipts in QuickBooks Online Partially?

Yes, you can send a partial refund in QuickBooks Online. Here are the key steps to follow.

  1. In QuickBooks Online, click ‘+ New.’
  2. Tap the ‘Refund Receipt’ option from the dropdown.
  3. Now, tap the ‘Customer’ field dropdown arrow.
  4. Select the customer to whom the refund is due.
  5. Input the details needed to make the refund.
  6. Finally, tap the ‘Save and close’ button.

You can also print the refund received by tapping the ‘Print’ button.

How to Add Receipts in QuickBooks Online after Paying for Them?

It is easy to directly upload QuickBooks receipts after paying for them. Use these points.

  1. Head to the ‘Receipt’ tab. It is on the ‘Banking’ menu.
  2. Now, drag and drop receipts into QuickBooks Online.
  3. Alternatively, browse to upload the receipts or email them to QuickBooks.
  4. If using a mobile device, add the receipt by opening the app.
  5. Tap ‘Menu’ followed by ‘Receipt Snap.’
  6. Tap ‘Receipt Camera’ and click your receipt’s picture.
  7. Hit ‘Use this photo’ followed by ‘Done.’

Also Read: QuickBooks Self-Employed

How to Refund Receipt in QuickBooks Desktop

You can give the customer credit or refund in QuickBooks Desktop. Windows operating system users can give money or credit back by creating a credit memo and choosing how to handle the credit.

  1. In the ‘Customers’ menu, click ‘Credit Memos/Refunds.’
  2. Choose your customer from the ‘Customer: Job’ dropdown.
  3. Add the items to give the credit for and choose Save and Close.’
  4. Select a specific way to handle the credit in the ‘Available Credit’ window.
  5. The three methods are to ‘Retain as in available credit’, ‘Give a refund’, and ‘Apply to an invoice.’
  6. If you choose the first method, you can use the credit as payment for a different transaction.
  7. You can issue the refund in a check or cash in the second method.
  8. If you opt for the third method, choose an invoice in the window that QuickBooks opens to apply the credit to.

Using Retain as an available credit method

  1. Choose ‘Customers’ followed by ‘Receive payments.’
  2. Choose your customer below the ‘Received from’ dropdown.
  3. Now tap the ‘Discounts and credits’ icon.
  4. Examine the credit to apply in the ‘Credits’ tab and tap ‘Done.’
  5. Choose ‘Yes’ when you see the message to confirm the transfer.
  6. Finally, tap ‘Save & Close.’

Using the Give a refund method

  1. Tap ‘OK’ in the check that is automatically filled.
  2. Head to the ‘Customers’ menu and choose ‘Receive payments.’
  3. Choose ‘Customer’ from the ‘Received from’ dropdown.
  4. Now, tap the ‘Discounts and credits’ icon.
  5. Choose the check you made in the ‘Available credits’ section and tap ‘Done.’
  6. Tap ‘Yes’ in the message to confirm the transfer.
  7. Lastly, click ‘Save & Close.’

Using Apply credit to an invoice method

  1. Launch the ‘Apply Credit to Invoice’ window by selecting ‘Customer: Job.’
  2. Now, choose the credit to apply and tap ‘Done.’

Also Read: Custom Email Template Issue in QuickBooks

Summing up

Now you wouldn’t face any issues in recording refunds in QuickBooks Online and Desktop. QuickBooks refund receipt will help you pay back to your customers timely. Issue refunds for various scenarios using the steps in this article. If you need more assistance or cannot understand any point, seek professional QuickBooks assistance.

Frequently Asked Questions

What is refund receipt in QuickBooks?

QuickBooks refund receipt documents credit card refunds of customers. When you create a refund receipt, QuickBooks lowers the revenue linked to the products you are refunding. It also lowers the bank account that’s used for batching payments. Use the refund receipts whenever your customer demands a refund for any service or item. You can refund if the invoice has been paid, services that didn’t satisfy the customer, and refund their overpayment or credit.

How to find a report of refund receipts processed for a year in QuickBooks?

It is easy to pull up the Transaction List by Customer Report. You can modify it to display the refunded receipts processed for the year.

  • Navigate to the ‘Reports’ menu.
  • On the search bar, input ‘Transaction List by Customer.’
  • From the upper-right portion, tap ‘Customize.’
  • Choose the suitable ‘Date’ on the ‘Report Period’ on the ‘General’ dropdown.
  • Head to the filter dropdown and select ‘Refund.’
  • On the ‘Customer’ dropdown, choose the customer and tap ‘Run report.’

How to record Employee Retention Credit received in QuickBooks?

If you receive an ERC refund and it’s a liability overpayment, apply it as a credit to a payroll tax account. Select the correct account after discussing it with your accountant to apply for the credit correctly in the tax forms. Then apply for the tax credit with these steps.

  • First, make it a liability check. Visit this link to find out more about it.
  • Choose ‘Expenses.’
  • Now, pick the account to apply for the credit.
  • Input the credit amount as a negative figure.
  • Input a transaction explanation in the memo field.
  • Now, choose the ‘Recalculate’ button.
  • It will minimize the check amount by the credit amount.
  • If still there’s a credit balance, apply it to the next period. Use these same steps for it.