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kennedy442
December 11, 2023
Question

Recording Refund to Customer Credit Card

  • December 11, 2023
  • 1 reply
  • 0 views

I refunded our B2B customer money on their credit card (with the intent of charging a different card, per their request). I want to record this refund transaction properly in QB Online.

 

To be clear, no products were returned. There is no physical product being added to our inventory.

We issued a Credit Card refund only because our Customer wanted us to charge a different credit card.

 

Here's how we recorded these entries thus far in QB:

- Invoice for $100 (Our customer's account balance: -$100)

- 1st Payment (by Credit Card) for $100 (Balance = $0)

- Refund Receipt recorded for $100 (Balance = $0)

 

I expected their balance due to be -$100, since the Invoice is effectively unpaid at this point in the process.

 

However the Customer's balance is still $0.

It seems the Refund Receipt does not affect their Account Balance.

 

The Chart of Accounts (however) lists the Refund Receipt as an outflow of funds from our business. 

 

How to handle this properly in QB, so that the Customer's balance changes when a refund has been issued?

And so that when we reconcile our books, the Payment and Refunds (and etc) match our bank statements.

 

I appreciate guidance anyone can offer. 

Thank you

    1 reply

    C
    CharleneMaeF
    December 11, 2023

    You're already on the right track, kennedy442.

     

    I'm here to guide you through the additional steps to ensure everything is handled accurately.

     

    Since you've already issued a refund receipt and reversed the original payment, the best approach we can take is to leave the paid invoice as it is. It ensures your financial records accurately mirror the real-life transactions that have occurred.

     

    To proceed, I recommend updating your customer's billing information:

     

    1. Go to Sales, then select Customers.
    2. Choose the customer you want to edit.

    3. Select Edit in the upper right.

    4. Click the current card number below the Preferred payment method line.
    5. Hit the + Add link in the upper right.
    6. Enter the new card information, then select Save or OK.

    7. After you save the entry, you can only view the last four digits of the card number.

     

    Once done, create a new invoice with the correct amount and details. Here's how to do it:

     

    1. Click the + New button and then choose Invoice.

    2. Pick a customer.
    3. Set the appropriate invoice date and amount.
    4. Make sure to turn on the Online payments option.
    5. From the Product/Service column, select a product or service.
    6. Enter the other necessary information.
    7. When you’re done, hit Save and send.

     

    When your customer makes a payment on the invoice, QuickBooks processes the payment and categorizes it into the correct account.

     

    If you have follow-up questions or need further assistance in handling your other business processes, please don't hesitate to visit us again. The Community has you covered. 

      M
      MMK48
      May 15, 2024

      how would i do the same thing on quick books desktop?

      A
      AileneA
      May 15, 2024

      I'd be happy to help you process a customer refund to a different credit card in QuickBooks Desktop, MMK48.

       

      We can update your customer billing and create a new invoice with the updated credit card online payment details to process a customer refund.

       

      We can access the customer information tab to update billing details. Here's how:

       

      1. Open QuickBooks Desktop and go to the Customers menu.
      2.  Select Customer Center.
      3. Locate and double-click on the customer for whom you want to update the billing information.
      4. In the Edit Customer window, navigate to the Payment Settings tab.
      5. Update the necessary information, such as credit card details, bank account information, or online payment options.
      6. Tap OK once done.

       

       

       

      Now, let's create a new invoice and include the updated online payment details:

       

      1. From the QuickBooks Desktop home screen, go to the Customers menu and select Create Invoices.
      2. Choose the customer for whom you want to create the invoice from the Customer: Job drop-down menu.
      3. Fill in the invoice details like the date, terms, and necessary item or service information.
      4. Make sure to turn on the Online payments option.
      5. Select the appropriate online payment option from the Payment Method drop-down menu, which should reflect the updated billing information you previously entered.
      6. Complete the rest of the invoice details as needed, including any line items or additional charges.
      7. Once you've reviewed all the details, click Save & Close to save the invoice.

       

       

       

      Please check these links. These will show you how to record payments and some customer-related reports:

       

       

      Please let me know if you have any questions regarding recording customer refunds or if you encounter any issues while processing customer payments in QuickBooks. I'm here to help you at any time. Have a great day!

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