Customer refunds

Hey there, @madison-arnoldroofs.

Thanks for taking the time to reach out to the QuickBooks Community. I hope you're having a great day so far. 

When recording a refund in QuickBooks Online you can follow the steps I'm including below: 

1. Click on + New, then choose Refund receipt.
2. From the Customer dropdown, select the customer you want to give a refund.
3. Fill out the fields with the same info on the original sale.
   • To issue a refund to their credit card, select Credit card from the Payment method dropdown. Then, select Enter credit card details. Enter their credit card info then click on Submit.
     Tip: You can also select Swipe card if you’re with the customer and you have a card reader.
   • To issue a refund to their bank account, select Direct Debit from the Payment method dropdown.
     Note: If you don't see Direct Debit in the Payment method dropdown, select + Add new, enter Direct Debit, then select Save.
4. From the Refund from dropdown, tap on the account you want to issue the refund from.
5. From the Save and new dropdown, hit Save and close.

If you feel you need to void the transaction, you can do so by following the steps in this help guide: Void or refund customer payments in QuickBooks Online.

On another note, I recommend consulting with your accounting professional for more advice on handling this transaction. Your accountant can advise the best way to handle this based on your business needs. 

Please don't hesitate to let me know if you have any questions or concerns. Have a good one! 

@madison-arnoldroofs 

"Would I process a refund receipt (for the refund which is already cleared and in bank feed) and a credit memo (to zero out the rest of the balance showing)?"

You got it.  Just make sure that the Product/Service(s) on the Refund Receipt and Credit Memo are the same as the original invoice.  Also, don't forget to apply the Credit Memo to the original invoice to close it out.