How do I process a payment into the bank in error and the refund

Hello Accounts436, 

Here are the two steps depending on if the refund is for a supplier or customer to which steps you follow bellow 

Refund from your suppliers

1. Create a supplier credit (+ icon -> supplier credit​)

2. Choose the correct date and supplier, put in the amount, choose VAT

3. Then click on the + icon again, and choose Bank Deposit, to show that the money went into your bank account

4. Choose the correct bank account on the top left corner, choose the date when the money actually hit your account

5. For Received from choose the correct supplier, for the account choose Creditors, put the amount in, choose no VAT

6. On the Supplier's page create cheque

7. Tick the deposit against the supplier credit (this shows QuickBooks, that the supplier credit has been used, and money was received from the supplier), untick the bill and save and close

8. Match the deposit against the transaction on your banking screen

Refund your customers

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 debtors 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.