When orders are canceled or products are returned, an amount is refunded to a customer. QuickBooks is one of the software solutions that can be used for recording the refund amount. You can learn how to record a refund to a customer in QuickBooks by using its Create option. In versions of the Intuit software like QuickBooks Online, a refund receipt or a credit memo can be utilized. By applying a similar way, credit card refunds made to your customers can also be recorded or entered in QuickBooks.
For more guidance, please check the contents of this blog. We have elaborated on the methods to record a refund or credit card refund made to a customer in both QuickBooks and QBO.
Here, you can see an outline of this blog to know its contents:
There can be 3 main reasons why a customer refund may be given and recorded in QuickBooks.
Irrespective of the situation or reason, the users of QuickBooks can record refunds to customers for maintaining their own track.
Your customer may have canceled an order and may now request a refund. After you have made the refund, you can enter it in the QB software by selecting the Create symbol. After selecting it, please choose Check or Expense. Then specify the customer in this case by clicking on Payee. You can now mention the details of the refund along with the product or service with respect to the same.
To know how to record a refund to a customer in QuickBooks, you can follow these instructions:
When a refund has been given to your customer via a credit card, you can record it in QB using Sales Receipt. This is an option in the accounting software. Once you select it, you can move to the More button. Press it and then navigate to Refund. From this tab, you can tap on the option that says Yes, Refund My Customer. Then you can apply the refund amount to the customer’s invoice as well.
These directions show more about how to record a customer credit card refund in QuickBooks.
Tip: After recording the refund made via a credit card, you may want to remove it for some reason. You can easily delete a credit card refund in QuickBooks.
QuickBooks Online lets you enter/record customer refunds with its + New option. The option shows Give Refund or Refund Receipt that enables the process to record the refund. The refund can be added by creating a credit memo as well. Once the memo has been made, a refund receipt can be used to complete the process.
In the online version of QuickBooks, to record a refund to a customer, you can learn the details of these methods below.
After a product is returned by your customer or a service is not purchased, a refund can be recorded for it in QuickBooks Online. To begin, you can select the option of + New. Make a selection for either Give Refund or Refund Receipt. Then proceed to select Customer. Using the Refund from option, you can continue and supply the information required. This clarifies how to record a refund to your customer in QuickBooks Online.
Note: In addition to these fields, you may find others as well. You will be required to fill those fields too.
Tip: In addition to adding a customer refund, you can also record a vendor refund in QuickBooks Online. See here the steps to record it.
For clearing the outstanding balance of your customers when the goods have been returned, you can enter the customer refund in QuickBooks Online. To clear this balance, a credit memo needs to be made. With the help of the Create menu, you can opt for Credit Memo. Then mention details like the customer’s name, the concerned product/service, etc. After this, Refund Receipt has to be selected for entering and applying the customer’s refund.
Below, we have explained how to record a customer refund in QuickBooks Online in steps:
Note: As an alternative to Steps 1 and 2, you can move to “Sales Transactions”. Then press “New Transaction”. After pressing the button, you can pick “Credit Memo”.
Tip: To know the detailed way to create a credit memo in QuickBooks, you can read here.
After thoroughly reading these steps, you would have understood how to record a refund to a customer in QuickBooks Online via Credit Memo. On applying the steps, the refund will get successfully entered.
In this informative post, we explained the situations under which a refund may be provided to a customer. Along with this, we showed how the refund can be recorded in QB once it has been given to the customer. Let us know how helpful this post has been. Also, to provide us with any suggestions, our comment section can be utilized.
For additional readings, see how to record a tax refund in QuickBooks. Also, take a look at the ways explaining how to record a cash withdrawal in QuickBooks.