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C
cdcompany2
March 22, 2022
Question

Refund after invoices paid in full - estimate shows a negative subtotal

  • March 22, 2022
  • 1 reply
  • 0 views

A customer recently changed the scope of work, reducing his estimate total to below the amount that had already been invoiced and paid. The Estimate shows a "remaining subtotal" as -$350, and we will send him a check for this amount. I'm not sure how to record this in QBO, since the invoices were all paid in full (ie not showing in QBO as an overpayment). I thought about going back and reducing the last invoice, but am not confident this is the proper approach. I've read about refunds and credit memos but neither seem to apply here, or I'm not doing it right! 

For clarification, here's a simplified summary of what happened
Estimate provided for $1,000
Customer was invoiced and paid $450
Customer was invoiced and paid $400
Customer significantly reduced the scope of work, resulting in a revised estimate of $500

He's already paid $850, we owe him $350. How do I record this in QBO? And have the estimate show a subtotal of 0 as a result? 

 

I also want to provide a statement or summary showing the record of what's been paid AND what's being refunded. Struggling to find a report with that as well... 

 

Thanks!! 

1 reply

G
GlinetteC
March 22, 2022

I've got your back, cdcompany2.

 

You can record a Refund receipt for a customer's refund in QuickBooks Online. I'll show you how:

 

  1. Go to the + New button and select Refund receipt.
  2. Select the name of the customer from the Customer drop-down.
  3. Select the Refund From the drop-down, then select the bank you deposited the payment for the invoice.
  4. Add all products or services the customer returned in the Product/Service column.
  5. Make sure to fill in the Date, Qty, Rate, Amount, VAT, and other fields accordingly.
  6. Click Save and close.

 

To learn more details about refunding a customer, please check this article: Record a customer refund or supplier refund in QuickBooks Online.

 

Also, you can check this link for future reference: Create and apply credit notes or delayed credits in QuickBooks Online.

 

Let me know if you need further assistance. I'm always around to help.

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