If I create a refund receipt to refund a payment, QB does not seem to offset this against the payment. The payment still appears a credit on the AR report. How to fix?

Thanks for reaching out to the Community about your concern in managing a refund payment to your customer in QuickBooks Online (QBO), @nivedita. Let us provide the steps and information to help you fix it.

We can see how crucial it is to process the refund for your customer correctly in our program. We can follow the process and information below to ensure you return your customer's payment. Also, ensure your books are up to date.

In this case, you'll need to make sure you used the same account on the refund receipt where the payments are deposited. Let me guide you with some steps below in recording a refund.

If you want to refund for goods or services that didn't satisfy the customer, you can follow the steps below:

1. Click on the +New.
2. Select Refund receipt.
3. In the Customer dropdown, select the customer you want to refund.
4. Select the bank where you deposited the payment for the invoice in the Refund From dropdown.
5. Add all products or services the customer returned in the Product/Service column.
6. Ensure to fill in the date, quantity, rate, amount, Tax, and other fields accordingly.
7. Then click Save and close.

Please check this article for more details: Record a customer Refund or supplier refund in QuickBooks Online. It also includes steps in recording a refund based on various scenarios.

However, if you want to record a refund for a customer's credit card payments, check this article for guidance: Void or refund customer payments in QuickBooks Online.

Additionally, we've also added the following articles, in case you'll want to pull up some financial reports that give you tons of great info about your business and how you can get the most out of it:

• Run reports in QuickBooks Online
• Customise reports in QuickBooks Online

You can always count on us if you need more help managing refunds and other QuickBooks concerns, @nivedita. Take care always!