How do you record a product return form a sale created in Sales Receipt (not Invoice)? The Refund Receipt operation wants to link an invoice and won't allow adding lines.

You can record the product return from a sale created via Sales Receipt, either through a Credit note or Refund receipt, John. Let me provide you more information about this process.

When you mentioned linking a customer refund to an existing invoice and QuickBooks not allowing adding lines, it seems you're referring to a Credit note instead of the Refund receipt function. If this is the case, the reason we can't link a Sales Receipt to a Credit Note is that a Credit Note is primarily suited for storing customer credit that can be applied to an open or future customer invoice.

If the customer refund is for storing a credit, a Credit Note would be the appropriate choice, and you would only need to select the same item on the Credit Note screen. Here's how:

1. Go to the + New button, and select Credit Note under Customers.
2. Choose the customer who is returning the product.
3. Add the product or service that was originally sold, adjusting the quantity to reflect the return.
4. Ensure that the Credit Note reflects all necessary details, including product descriptions, prices, and taxes as recorded in the original Sales Receipt.
5. When you're done, select Save and close.

On the other hand, if you need to refund the customer for the actual amount of the product item listed in the sales receipt, a Refund receipt would be suitable. Here's how:

1. Click to +New button, and select Refund receipt under Customers.
2. Fill out customer information. (Select the customer you are issuing the refund to from the Customer dropdown menu).
3. Enter the payment method. Specify the date of the refund on the form. Choose the payment method by which you are processing the refund
4. Add products or services being refunded.
5. Once you have filled out all required fields and reviewed the information for accuracy, you can save the refund receipt.

Depending on your need, either a credit note or a refund receipt can be used to refund the customer. If you choose the same product item in either option, it's important to note that if the item is classified as inventory, its quantity will increase as it is restocked in your inventory. For more comprehensive instructions, please refer to the article: Record a customer refund in QuickBooks Online. 

Moreover, if a customer paid a deposit for an invoice but later changed their mind and cancelled the transaction, you can refund and close an invoice in QuickBooks Online.

If you need more assistance whether the credit note or refund receipt, feel free to comment below by clicking the Reply button. We are here to help you to ensure your transactions are processed accurately.