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I created a credit memo for a refund, then issued a check for the refund amount, but now the refund amount is showing up as existing credit on the customers account.

Forum|Forum|7 years ago
December 11, 2018
4 replies
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I tried printing the check, it gave the check a number but didn't remove the credit from the customers account. how do i show that the customer has received the refund, and that it is not available as a credit for future orders. thank you.

the credit was actually issued back onto the customers credit card. but its only giving me the option to create a check to record the refund, is there a way to show that it was credited to their credit card directly from my account. it was done using a square reader. thank you.

QuickBooks Desktop

Best answer by SkinnyRaven

You write the refund check on the same account as your merchant services deposit account. Next you link the refund to the credit memo.

Although you have recorded both the credit memo and the check, you still need to connect the check to the credit memo so that QuickBooks can track the transaction correctly. You use the Receive Payments window to connect the two.

To connect the refund check to the credit memo:
1. 1 Choose Customers > Receive Payments.
2. 2 Choose the customer to whom you just wrote the refund check. You'll see the amount of the credit
  
  included in the Existing Credits field and the refund check in the bottom section of the window.
3. 3 Select the Apply Existing Credits checkbox.
4. 4 On the Refund Chk line, enter the check amount in the Payment column, if not already entered by QuickBooks, and then click OK. If you now choose Customers > Create Credit Memos/Refunds to display the credit memo you just entered and click Tx History, you should see the refund check listed in the Transaction History - Credit memo window.

S

SkinnyRavenAnswer

You write the refund check on the same account as your merchant services deposit account. Next you link the refund to the credit memo.

Although you have recorded both the credit memo and the check, you still need to connect the check to the credit memo so that QuickBooks can track the transaction correctly. You use the Receive Payments window to connect the two.

To connect the refund check to the credit memo:
1. 1 Choose Customers > Receive Payments.
2. 2 Choose the customer to whom you just wrote the refund check. You'll see the amount of the credit
  
  included in the Existing Credits field and the refund check in the bottom section of the window.
3. 3 Select the Apply Existing Credits checkbox.
4. 4 On the Refund Chk line, enter the check amount in the Payment column, if not already entered by QuickBooks, and then click OK. If you now choose Customers > Create Credit Memos/Refunds to display the credit memo you just entered and click Tx History, you should see the refund check listed in the Transaction History - Credit memo window.

A

arkvalleyinfoAuthor

Hey, thank you. i might be doing this wrong. but when i click on payments, the check does not appear as one of the line items, it shows nothing when i select the customer. the check is already recorded under "recent transactions" right above the recording of the credit memo. but it still shows "open balance" amount under summary.

qbteachmt

"but when I try to link the credit memo to the check it doesn't show the check and tried to apply the credit to new invoices for that customer. I did check the account on the refund check and it is accounts receivable."

If the check was not created From the credit memo, as long as the check shows AR, you can use Receive Payment (leave the amount to Receive as 0) and apply them, here.

Y

Yacht Collector

I used the methods described and the customer balances went to zero. However, the AR 30/60/90 report now shows the customer as having an account balance due equal to the amount of the check. How do I get the AR report and the customer record to match?

I

IMCB

I can't create a vendor with the same name as the customer who will be receiving the refund. How, then, can I apply the credit from the customer to the refund check to the vendor if they're both the same?

DivinaMercy_N

Hello there, @IMCB. I'd be happy to share with you the steps on how you can add customers and vendors with the same name in QuickBooks.

QuickBooks Desktop (QBDT) won't allow you to add customers and vendors using the same name. This is to avoid any misinterpretation that could affect your overall accounting data. As a workaround, you can add a special character or digits to the name to save it.

For example:

ClientC- you add C at the end of the name which indicates that this is a customer.
ClientV- you add V at the end of the name to tell that this is a vendor.

Then, to guide you in recording a refund for your customer, here's the article that you can open for the detailed steps: Give your customer a credit or refund in QuickBooks Desktop for Windows.

Also, it's recommended to create a backup copy first before doing any changes to your company file. This is to ensure you have the original details that you can restore at any time in case of data loss or damage.

Stay in touch if there's anything else you need about adding names or processing refunds for your customers in QBDT. I go your back. Have a good one.

V

Veronicafaye

Hi, Hope youre doing great!

Just need you help in clarifying this matter.
So once a credit memo has been created for a customer, how do we create a check aligned with this credit memo? Is there a different process or do we just manually generate the normal/usual process for the check?

Hoping top get a response.

Thank you

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