Question

How to refund sales order prepayment in QB Enterprise

Forum|Forum|2 years ago
December 18, 2023
2 replies
0 views

So the new prepayment for sales orders is a great feature, but cannot figure out for the life of me how to refund a cancelled order. Had a payment made 11/30 that has already cleared our bank. 12/18 cust cancelled since parts still not available. Not a big deal. Credited the customers card through our non QB terminal so they are all set. However, i cannot find how to refund the payment so both the payment and the refund are both in qb and reconcile with our bank statement.

The only thing i can do is delete the entire payment. Then we would have a payment and refund in our bank that doesn't exist in qb. Payment cannot be edited, cannot unselect the S.O. so it leaves the balance with the "what would you like to do with this overpayment" like on a normal payment.

The QB payment help link here

Goes over everything BUT refunding. Even says that you can edit UNTIL applied to an invoice which also seems incorrect.

You can edit a prepayment if you haven’t applied it to an invoice. You can't edit a Prepayment after it's been applied to an Invoice.

QuickBooks Enterprise Suite

MariaSoledadG

Let's make sure to get this sorted out, Capan.

You'll have to convert the sales order to an invoice. Then, receive the prepayment amount. Once done, use a check to record the refund. This reduces your bank's balance and offsets the customer's open credit, overpayment, or prepayment.

Then, write a check. Follow the steps outlined below:

Go to the Banking menu.
Select Write Check.
Under the Expenses tab, select Account Receivables account for the prepayment and enter the amount.
Click Save & Close.

After that, receive payment in the amount:

From the QuickBooks Home page or the Customers menu, select Receive Payment.
In the Received From drop-down, select the customer's name you used for the check or expense when recording the refund.
Enter the Amount received.
Make sure the date is correct, then choose the Payment method.
Select the invoice or invoices you'd like to pay.
Click Save & Close.

Furthermore, learn from this article how you can handle credit or refund a check to give back the money to your customer. I've added this article for more details: Give Your Customer A Credit Or Refund In QuickBooks Desktop.

You can always get back to us here if you have further questions about prepayment. I'm always right here if you need further assistance.

C

capandhitch2Author

I appreciate the reply but this doesn't seem like the best way in practice. way to many steps to cancel and refund a simple customer deposit.

1) Converting to an invoice will also change inventory and add item history that didn't happen with an item we didn't have (why we are cancelling the backorder) which makes any inventory issues down the road have extra fake transactions that never happened.

2) to receive the prepayment on an invoice, there would have to be something invoiced, then a credit made off the invoice creating a false item history.

I don't understand why the transactions are "locked" to SO. I get it in theory, but there needs to be a way to release this. If the same transaction happened prior to this feature, we would have received a customer payment and created a SO. Then when customer cancels order days/weeks later, all we had to do is close so, and go to the payment and select Refund to customer. Simple and quick.

There should be NO reason to create a posting transaction (invoice) to close a sales order and refund a deposit.

Also in the second part you mention re-receiving the customers payment with the original date so it lines up with bank deposit. What if the deposit has already been reconciled with bank online in the register in QuickBooks? Then we'd have to delete and reenter a deposit just to cancel a order with a deposit?

There is nothing to invoice. Customer cancelled an order with a deposit.

Rainflurry

@capandhitch2

When you turned on the prepayment function, you had to select or create a liability account that would record the prepayment. When you refund the prepayment, I think all you need to do is issue payment to your customer and assign the same liability account to the refund that was assigned to the prepayment. That will zero out the liability account and you will have both a deposit and a payment to reconcile your bank account.

BigRedConsulting

@capandhitch2

RE: So the new prepayment for sales orders is a great feature, but cannot figure out for the life of me how to refund a cancelled order.

I think the same as if you had received payment on an invoice, which is to create a credit memo and a refund. As you save the credit memo you'll be prompted and asked if you want to refund the customer. You can then refund via a check or a credit card refund, as appropriate.

For the credit memo, use a generic item, probably an other charge item called 'refund' or similar, that uses the prepayment liability account, which will reduce the liability.

C

capandhitch2Author

Yes, we created a item called "Refund"

Add it to the SO

Invoice it from the SO

Apply the prepayment credit to the Invoice

Create Credit Memo off the invoice

Refund CM Amount to customer

Used to be a lot easier just going to the customer payment and selecting "refund overpayment to customer"

I do like that it "locks" the credit so a customer cannot use it on another purchase if waiting for a prepaid order at the same time. But, Intuit needs to come up with a way to just close a sales order, and unlock/refund the payment to customer, it shouldn't take 10 steps, and add multiple transactions to the customers history. A new customer that orders something and cancels a week later will have 7 transactions if I'm counting right.

Estimate

SO

Payment

Invoice (to unlock prepayment)

Journal in

Journal out

refund

BigRedConsulting

I don't think you need to change the SO or the invoice at all, or use any journals, to issue a refund.

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