How would I enter a cheque payable to a customer?

Hello Diane18,

I hope your week is off to a good start. I know how important it is to make sure you have the appropriate paper trail for accounting purposes and I can help to make sure you're able to enter everything correctly.

In this case, you'll only want to be recording the reimbursement to the customer. If you record both a bill and a reimbursement, you'll be doubling the charge in your books. There are a couple of things to consider when approaching the reimbursement.

For instance, if this is something they were invoiced or otherwise charged for by your company that they shouldn't have been, then you could consider a simple refund receipt to make sure the customer is properly reimbursed.

In the event that the customer paid a third-party for the repairs you mentioned and you want to reimburse that, consider using the Write Cheques feature to enter the transaction if you've actually paid them or are going to pay them the money back and not just issue a credit. You can choose a customer name on a cheque without having to set them up as a vendor. This will ensure you've recorded in your books that you've paid them back while hitting your accounts as an expense. Learn more here: Create, modify, and print cheques

If you're going to keep the customer's payment to that company as a credit on their account to put toward something in the future, select the Refunds & Credits option to enter a credit memo for the customer.

To learn more about refund receipts and credit memos for your customers, I recommend checking out the Enter a credit memo or record a return article in-product. Here's how to find that.

1. Click Help from the top toolbar, then QuickBooks Desktop Help. (Note: A shortcut to this is to press F1 on your keyboard.)
2. Choose the Help tab.
3. Click the Search button.
4. Type in Enter a credit memo or record a return, then hit enter.
5. Click the appropriate article.

Give me a shout if you have more questions!