How do I treat a refund to a customer due to overpaid fees that was rejected by the bank because they gave the wrong account number and I now need to redo the refund?

Hello sunburygymnastic,

If the refund to a customer is shown on the For Review of your Banking page, you can allocate it to the Accounts Receivable account. And for the new refund you'll be processing you can enter them as expense transactions.

To record the refund:

1. Click on the + New button.
2. Click on Expense.
3. Fill out the payee/customer name, under Payment account select the bank account where the money is being refunded from.
4. Under the Category details choose Accounts Receivable.
5. Enter the Amount and GST.
6. Click on Save.

Then, go to For review to categorize the bank feeds:

1. Go to the Transactions tab or Banking.
2. Click on the bank account, and click on For Review.
3. Click on the transaction, and under Category select Accounts Receivable account.
4. Fill out other fields like name and GST.
5. Click on Add if you did not record any transactions in QuickBooks or Match it to the transaction recorded for the refund.

Also, you can check this link to learn more about how to allocate customer refunds in QuickBooks Online Record a customer refund in QuickBooks Online.

Feel free to reply to this thread if you have more questions. The Community is here to help you!