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A
arkvalleyinfo
October 16, 2018
Solved

How do I create a partial refund?

  • October 16, 2018
  • 1 reply
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On a single invoice I charged for four different services at $500/each that were to occur over several months.  The customer later decided they didn't want two of the services.  The original invoice of $2000 was paid in full.  I need to refund $1000 for only those two cancelled.  When I try to process a refund I receive the error message "CustomerX's payment doesn’t have an open invoice to go with it".  

Best answer by Rustler

Don't mess with the completed transaction.  Just pay the customer and use your refunds income account as the expense for the payment

1 reply

Rustler
RustlerAnswer
October 16, 2018

Don't mess with the completed transaction.  Just pay the customer and use your refunds income account as the expense for the payment

A
Alex315
November 15, 2018

The transaction is being disputed.

How do you pay the customer back a partial refund?

 

Thanks,  Dr. Abreu

MichaelDL
MichaelDL
November 15, 2018

@Alex315

 

I've got you covered, Dr. Abreu.

 

As Rustler mentioned above, even if the transaction is being disputed, once it's completed you don't want to alter it. Instead, just issue a Refund Receipt for the disputed amount. I'll guide you through doing this below:

 

Create a Refund Receipt

  1. From QuickBooks Online, click the Plus (+) icon and select Refund Receipt.
  2. Select the customer who is disputing the transaction at the top, and enter a Product/Service that you'll be refunding from (thus reducing the Income from the disputed invoice).
  3. If ACH payments are enabled, be sure to pick the correct refund account and payment type before continuing.
  4. Click Save and send.

This process is also covered in our tutorial on Refund Receipts here. Check out this video demonstration for a quick example:

 

 

With these instructions, you can refund as much as you need without having to edit the disputed transaction. Please let me know if there's anything else you need, I want to make sure you're taken care of. Thanks for reaching out, wishing you a wonderful rest of your day.

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