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Kh29
October 5, 2020
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Refund of invoice which has been partially paid.

  • October 5, 2020
  • 1 reply
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Hi, we've got a customer that partially paid an invoice (let's say £10 of a £50 invoice) and I then linked the bank transaction to the invoice in QBO, showing a partial payment with an outstanding balance of £40. He has now cancelled his order so we've sent him the £10 back via BACS transfer but I'm not sure how we manage this in QBO. I assume I'll need a transaction of some sort to show the £10 refund and also close of the remaining £40 on the invoice. Not sure what they should be though. If I do a refund transaction for the £10 and link that to the BACS transfer, what do I create for the remaining £40?

Best answer by payment after leaving

Dear John, do you realise how crazy this is, our book keeper did this another way, your instructions are so confusing and nothing is clear. It is costing customers so much time in trying to understand the processes and costing more in employing people to sort out their quickbooks, which is supposed to replace a book keeper.

Please make clear concise instructions available. in bullet points, not long incoherrent sentences, thank you.

 


Hi BamBam33 We've included couple of links below that inform you how to account for customer refunds and writing off invoices.

 

https://quickbooks.intuit.com/learn-support/en-uk/customer-refunds-and-credits/record-a-customer-refund/01/239117

 

https://quickbooks.intuit.com/learn-support/en-uk/service-items/write-off-bad-debt-in-quickbooks-online/01/239632#M42

 

1 reply

A
Ashleigh1
October 5, 2020

Hello KH29, 

 

Welcome to the Community page, 

 

For the £10 the steps below will show you how to do the refund in Quickbooks for you. 

 

Refund your customers

1. Go to the + icon in the top right corner of the screen and create a expense
2. select the customer, the date the money left your account and expense from the debtors account- save and close
3. go back to the + icon, select credit note, fill in the customer name and amount- save and close
4. go to sales on the left side of your screen, click customers at the top of your screen and find the appropriate customer
5. click new transaction on the top right of your screen and select payment
6. on the next screen tick the expense and credit note (make sure no other transactions are ticked- save and close)This will show the customer refund.

 

 

This will work and leave the invoice open with £50 again which will be up to you on what you want to do with that £50 but if the order is cancelled you could just either void or delete it in the system. 

 

If you have any further Q's p[lease reach back out to us. 

K
Kh29Author
October 5, 2020

Hi Ashleigh1

 

Thanks for this. The only option to create an Expense is under the Supplier heading, is that the right one to use?

 

Also, should I unlink the original bank transaction payment from the invoice before I do this? And then link it to this new Expense?

 

Thanks,

Karl

G
GeorgiaC
October 5, 2020

Hi Karl, 

 

The Expense under the Supplier heading is the correct one to use, you'll be able to enter your customer as the payee when creating the transaction. 

 

Did your customer originally pay the full amount of the invoice before cancelling a part of the order, and was then issued a partial refund?

 

If so, you can record the full payment to the invoice and match this to the money which hit your bank account, and then follow the steps above to create the expense/credit note/payment to reflect the refund, which will then match to the money going out of the account. 

 

Get back to us is you have any questions, thanks 🙂👍

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