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TammieMB
April 4, 2024
Question

Customer refund by check

  • April 4, 2024
  • 3 replies
  • 0 views

I have Quickbooks Online and need to write a check to refund one of my customers. I would very much like all of the exact steps from beginning to end to on how to record it properly. Do I need to make a refund receipt, Write a check and link the two of those together? If anyone can give me all of the steps I would surely appreciate it. 

3 replies

E
Ethel_A12
April 4, 2024

Hello there, @TammieMB.

 

I'm here to help you record a customer refund in QuickBooks Online.

 

If you want to refund for a paid invoice, follow the steps below:

Step 1: Enter a credit memo

  1. Use the + New button.
  2. Choose a Credit memo.
  3. In your Customer drop-down, pick a customer's name.
  4. Enter any necessary details.
  5. Select Save and Close.

Note: If the customer has overpaid, you do not need the credit memo as you will already have an unapplied credit that acts as your credit memo.

Step 2: Make the refund

  1. Go to + New and select Expense.
  2. In the Payee field, select or enter the desired customer.
  3. In the Payment Account field, select the bank the money is being refunded.
  4. In the Category field, select the Debtors account (Accounts receivable).
  5. In the Amount field, enter the amount of the refund.
  6. In the Tax field, select the appropriate Tax (not inclusive/exclusive of tax) and hit Save.
  7. Next, go to + New and select Receive payment.
  8. Add the Customer and select the Payment method and Deposit to.
  9. The balance should be 0 as they will cancel each other out, then select Save and Close.
  10. If you have Online Banking, go to Transactions, then Bank Transactions (Take me there). Then match the record you found.

 

If you want to refund for goods or services for a dissatisfied customer or a customer's overpayment, you can read this article and go to the bottom part for the steps: Record a customer refund in QuickBooks Online.

 

I'm also adding this article to help you categorize transactions in QuickBooks Online: Categorize online bank transactions in QuickBooks Online.

 

Don't hesitate to comment below if you need further assistance recording a customer refund in QuickBooks Online. I'm always here to help. Have a great day.

T
TammieMBAuthor
April 4, 2024

Thank you, but this is not helpful. I’ve already looked this up and it provides too many choices and I’m unsure of the correct one for my situation. 10 months ago a customer paid an invoice with a credit card. I need to refund PART of that invoice and cannot do a partial refund in QBO now at this late date. I need to write a check. Do I need to create a Refund Receipt AND a check? I’ve done that but it doesn’t look right so I may need to delete them. I need specific help for my situation to record this correctly in my books, please and thanks. 

Candice C
Candice C
April 4, 2024

Good afternoon, @TammieMB. 

 

I appreciate you coming back and giving some additional information about how you're needing to record a refund to your customer with a check. 

 

With the details you gave, I recommend consulting your accountant to be sure of which route would be best for you. 

 

If you have any other questions after speaking with your accountant, don't hesitate to ask. Have a wonderful day! 

E
EMILYD888
March 20, 2025

I just had to do this in QuickBooks Online and figured it out. It used to be very, very easy to do in QB Desktop but it's not so obvious anymore and it had the pros stumped. It took me some searching and troubleshooting but I finally got it. Once you get to the create a check step (step #2) you can print the check out physically. Make sure the Customer info is up to date with how you want their name printed on the check. Note that if you already have a Credit in the Customer Account do not make another Credit Memo. Don't forget step 3 or it won't clear out the credit on the back end. 

 

Refund a deposit in QuickBooks Online

Not processed with QuickBooks Payments

To refund a deposit in QuickBooks Online, create a credit memo, create a check to refund the deposit, and then record the payment.

Step 1: Create a credit memo

  1. Select + New.
  2. Select Credit Memo.
  3. Select the name of the Customer on your invoice.
  4. Enter the total of the invoice, including the deposit, in the Amount field.
  5. Select Save.

Step 2: Create a check to refund the deposit

  1. Select + New.
  2. Select Check.
  3. Select the customer in the Payee field.
  4. Under Category details, in Category dropdown, select Accounts Receivable.
  5. Enter the amount of the deposit received in the Amount field.
  6. Select Save and close.

Step 3: Record a payment

  1. Select + New.
  2. Select Receive Payment.
  3. Select the name of the Customer on your invoice.
  4. Make sure that the total credits equal the credit memo and invoice listed under Outstanding Transactions.
  5. Select the checkboxes for the credit memo and invoice in the Outstanding Transactions section.
  6. Select Save and close.

 

 

N
naomic8581
April 14, 2025

Once these steps are completed, how do you print the check? The check is not in the print queue. 

G
GebelAlainaM
April 14, 2025

Let's get this figured out, @naomic8581.

When you record a check in QuickBooks Online (QBO), you must select the Print later checkbox or the Print check option to add it to the print queue.

Since you can't see it in the print queue, you'll have to reopen the check and select those options mentioned.

Here's how:
 

  1. Go to the Expenses menu.
  2. Locate the check.
  3. Select View/Edit.
  4. Click the Print check.
  5. You'll routed to the Print Checks page and select the check you want to print.
  6. Select Preview and print, then Print.

You can read through this article for more details: Print a check in QuickBooks Online.

Additionally, you can refer to this article for future reference about pulling up the Check Detail report or other reports to keep track of your transactions in QuickBooks: Run a report in QuickBooks Online.

If you'd like an extra set of eyes on your checks to ensure you're getting the most out of your program, check out our QuickBooks Live Expert Assisted team. They're available on demand to offer guidance.

Feel free to reply if you need help managing checks and other expense transactions.

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