How do I record a customer payment followed by a bank initiated refund, while keeping the original invoice open?

You can unapply the customer payment to the invoice and create a check for the refund, Angela.

First, record the customer payment. Next, open the payment transaction and uncheck it to unapply from the invoice. This will ensure that the invoice will remain open. Here's how:

1. Go to Sales, then Customers.
2. Select the customer.
3. Locate the payment and click View/Edit.
4. Uncheck the box beside the invoice.
5. Hit Record and close.

Then, you'll create a Check or Expense to record the refund. Follow these steps to record a check:

1. Navigate to + New, then Check.
2. Choose the customer in the Payee section.
3. Under Category, pick Accounts Receivable (A/R).
4. Type in the amount.
5. Hit Save and close.

Once done, you need to link the unapplied payment to the refund by selecting Receive Payment. Make sure to choose the payment and the check you created.

Additionally, you can create and send statements to show customers summaries of their invoices, payments, credits, and balances.

We're here to ensure that your financial records are accurate. Should you have further questions about recording customer transactions, don't hesitate to hit the Reply button below.