How to Create a Refund Receipt in QuickBooks Online

How to Create a Refund Receipt in QuickBooks Online: Video

            This video lesson, titled “How to Create a Refund Receipt in QuickBooks Online,” shows you how to create a refund receipt in QuickBooks Online. This video lesson is from our complete QuickBooks Online tutorial, titled “Mastering QuickBooks Online Made Easy.”

Overview:

What is a Refund Receipt?

            If a customer wants a return or refund in the form of a check, cash, or credit card, you can create a refund receipt in QuickBooks Online instead of a credit memo. Unlike a credit memo, which is applied to the customer’s open balance or to future invoices, the refund receipt is used to give the customer cash, a check, or a credit card refund instead of a credit to their open balance or a credit to future invoices.

Create the Refund Receipt and Enter the Customer Info:

            To create a refund receipt in QuickBooks Online, hover over the “+ Create” button in the Navigation Bar and select the “Refund receipt” link under the “Customers” heading in the menu to open the “Refund Receipt” window. First, select a customer from the “Customer” drop-down. Their email appears in the “Email” field to the right, if one was entered, and the rest of the fields populate with the customer’s information. To add cc or bcc emails, if needed, click the “Cc/Bcc” link by the “Email” field, enter the addresses into the menu that appears, and then click the “Done” button in the menu.

Enter the Transaction Info:

            Select the refund receipt’s date from the “Refund Receipt Date” field. The refund receipt’s number appears in the “Refund Receipt no.” field, and you can change it if you enabled custom transaction numbers in your company file’s settings. If classes are assigned per transaction or locations are enabled, you can use the “Class” and “Location” drop-downs at the right side of this form to select your desired choices.

Select the Method of Refund:

            Then select the payment method to use to process the refund from the “Payment method” drop-down. If you select “Credit Card” and process payments in QuickBooks Payments, you can check the “Process credit card” checkbox that appears and then enter the credit card information by clicking the “Enter credit card details” button, typing it into the window that appears, and clicking the “Submit” button.

            Alternatively, if processing a refund by “Cash” or by “Check,” then select the account from which to withdraw the funds for the refund from the “Refund From” drop-down. You must select an account from which to process the refund, even if returning cash to the customer.

            If processing a refund by “Check,” a “Check no.” field appears after selecting an account from which to process the refund. To print the check later, check the “Print later” checkbox below this field. Otherwise, enter the check number to assign to the refund into the “Check no.” field. To print a check if you issue a refund by check, click the “Print check” link that appears when you click the “Print or Preview” button in the toolbar at the bottom of the page.

Select the Products and/or Service to Refund:

            Next, select the products or services being refunded from the “Product/Service” column’s drop-down or create a new “Refund” product or service, if needed, by using the “+ Add new” choice in the “Product/Service” column. After making your selections in the “Product/Service” column, ensure the refund “Amount” is correct.

Save and Process the Customer Refund:

            If processing the refund by check, click the “Print or Preview” button and then click the “Print check” link to save the refund receipt and print the check. Processing by credit card refunds the transaction amount to the customer’s credit card, either immediately or during your batch processing, depending on how you have your credit card system set up. If returning the refund using cash or after completing the other options, click or select a save choice using the “Save” buttons in the toolbar at the bottom of the window.