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tlbfs
March 3, 2021
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Adding and Categorising Banking Transactions - Customer Refund

  • March 3, 2021
  • 1 reply
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Hello,

I have just connected my bank account and am adding transactions for the first time.  I have a customer refund transaction but I am unclear as to how to categorise this.  I have selected 'Expense' as the transaction type but what do I select for the Category?  I have only just started using Quickbooks online as an online retailer and I let it create all of the accounts for me but I don't see anything to do with refunds.  Should I save it against 'Sales - Income' and it will just be saved a negative value in the Sales?  Should I create a new expense account for customer refunds??  Surely Quickbooks would have created the account I need to save this against, and I shouldn't have to create a new one? I have no idea, any advice gratefully received. 

Thanks.

Best answer by JackS

No I haven't added the initial sale as I was only going to add transactions from 1st March, which I when the refund was issued.  The initial sale is from 28th Feb.  Is this going to cause a problem?  If so I can always add transactions from 28th Feb.

It's a partial refund.


Hello Tlbfs, so here are the steps you need to take to record this correctly in Quickbooks,

 

Refund your customer 

 

1. Go to the + icon in the top right corner of the screen and create an expense

2. select the customer, the date the money left your account, and expense from the debtor's account- save and close

3. go back to the + icon, select credit note, fill in the customer name and amount- save and close

4. go to sales on the left side of your screen, click customers at the top of your screen and find the appropriate customer

5. click new transaction on the top right of your screen and select payment

6. on the next screen tick the expense and credit note (make sure no other transactions are ticked- save and close)This will show the customer refund.

1 reply

P
payment after leaving
March 3, 2021

Hi tlbfs Have you created the invoice and received payment from the customer or created a sales receipt in relation to the amount that was refunded?

T
tlbfsAuthor
March 3, 2021

Hi John,

No I haven't done any of this.  Literally all I have done so far is connect my account and now I am trying to categorise the transactions.  I am currently a sole trader, soon to be VAT registered and so I am just trying to get my head around what is the bare minimum I need to do in Quickbooks.  Do I need to generate invoices and receipts in Quickbooks?  I was hoping I wouldn't need to do this.

 

Thanks.

G
GeorgiaC
March 3, 2021

Hi tlbfs

 

Thanks for getting back to us, no worries, we can take you through this step by step. 🙂

 

To correctly record the refund you'd need to assign a customer to this, have you already added the initial sale from the customer into your QuickBooks from the For-Review feed on the Banking screen? Was the refund for the whole or partial amount? 

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