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How to Make Refunds in QuickBooks

by Kate BluestUpdated September 28, 2017

Your customer calls to say the garden hose she bought in your store has a tear in it. A quick look at your inventory in QuickBooks reveals she bought the last one. Even worse than that, the manufacturer has discontinued this item so you cannot get a replacement for the customer. You need to issue her a refund. You can process her refund in a few steps using QuickBooks. You can credit an invoice, issue a credit memo, issue a refund by check or reverse a credit card charge.

Select “Customers” on the top menu. Click “Create Credit Memos/Refunds” in the pull-down menu.

Select the customer and job.

Select the class if using that field.

Review the customer name and address for accuracy.

Review the date and credit number (automatically generated) to ensure accuracy.

Enter the purchase order number if the customer gave you one with the original order.

Select the item for which you are issuing a refund from the pull-down menu in the “ITEM” column.

Write the reason for the refund after the description in the “DESCRIPTION” column.

Enter the quantity of the items for which you are issuing a refund.

Review the rate for accuracy. Edit the amount if necessary.

Select an appropriate “Customer Message” from the pull-down menu in the bottom-left corner of the credit memo.

Review the tax information to ensure the rate is the same amount the customer paid when making the purchase.

Select the appropriate checkboxes next to “To be printed” or “To be e-mailed.”

Click the “Save & Close” button or the “Save & New” button to save the credit memo.

Select an option in the “Available Credit” window.

Select “Retain as an available credit” to apply the credit to the customer’s next order. Use this option only if the customer already paid for the item you are refunding or if your company has an exchange-only return policy and the customer has no unpaid invoices.

Select “Give a refund” if the customer would like to receive the refund by check or as a reverse charge on her credit card. In the “Issue a Refund” window, select the “To be printed” checkbox to print a check and the “Online Payment” checkbox to charge back the refund to a credit card.

Print the check by selecting “File” from the top menu, “Print Forms,” “Checks.” Select the check by clicking on it and click the “OK” button. Insert the proper check in your printer and select the “Print” button.

Select “Apply to an invoice” to apply the credit to an unpaid open invoice.

Select the invoice to which you want to apply the credit memo and select the “Done” button.

Tips

Apply credits to the same job used to invoice the item.

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