How can you Enter a Customer Refund in QuickBooks?

Customer refund in the QuickBooks
In every business, sometimes as it happens, the customer is not satisfied by the product and services provides. The customers then ask for a refund for the goods and services which businesses provide. And if you are using QuickBooks as accounting software, you will have to record these customer refunds in the QuickBooks similarly as you must have done in any other accounting software as per the accounting guidelines. The below writeup will help you in guiding as to how you should record the refund issued to the customers against the goods and services, they are unsatisfied with.

Steps for entering the Customer refund in the QuickBooks

Refund for goods and services which customer did not like

You need to follow the below steps for entering the refund of goods and services, customers are unsatisfied with:

  1. First of all, click on select > new > refund receipt or give a refund.
  2. In the next step, choose the customer that you want to record a refund from the customer drop-down.
  3. In the next step, you will have to select the bank you transferred the payment of the invoice from the “Refund from” drop-down.
  4. Now you will have to add all the product and services that the customer has returned in the columns of product and services. Ensure that you have entered the correct quantity, rate, tax amount, etc.
  5. After entering all the appropriate information correctly click on save and close.

Refund in case Customer made overpayment or credit

If your customers want to redeem their open credit, made an accidental overpayment, or cancelled the order after the prepayment. You can use a cheque or expense for recording the refund in such kind of scenarios. The methods reduce your bank account balance and offset customer’s open credit, overpayment, etc.

For recording the refund for your customer

  1. First of all, click on select > new >expense, add expense, or cheque.
  2. In the next step, choose the customer that you want to record a refund for from the payee drop-down.
  3. In the next step, you will have to select the bank you transferred the overpayment from the payment account drop-down.
  4. Now you will have to select the account receivable on the first line of category and enter the amount you wish to refund.
  5. After entering all the appropriate information correctly, click on save and close.

For linking the refund to the customer credit or overpayment:

  1. First of all, click on select > new >receive invoice payment.
  2. In the next step, choose the customer that you had chosen earlier at the time of recording of refund.
  3. In the next step, fill all the details appropriately and select the checkbox for expense or cheque.
  4. After checking the payment is equal to the open balance, click on save and close.

If you need any further details, dial a toll-free number and our QB technical helpdesk will help you.

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