How to Issue a Refund in Canadian QuickBooks Online

In this tutorial, I’ll show you how to issue a refund in the Canadian version of QuickBooks Online.

Quick Note: I’ll be showing you how to issue a refund receipt to record that you’ve given money back to your client. This is different from a credit memo, which is when you issue your customer credit that they can use for future purchases.

Quick Instructions:

  1. In the upper left corner click +New
  2. Click Refund receipt in the CUSTOMERS column
  3. Fill in the Receive Payments screen
    • Customer: Who’s receiving the refund
    • Payment method: How you issued the refund
    • Refund from: What account did the money come out of
    • PRODUCT/SERVICE: What is being refunded
    • QTY: How many are being refunded
    • RATE: How much did it cost
    • SALES TAX: Canadian tax code used
  4. Click the green Save and Close button

Creating a Refund Receipt Canadian QBO

To start click the + New button in the upper left-hand corner. Then select Refund receipt in the CUSTOMERS column.

Creating a new Refund receipt in QuickBooks Canada

On the Receive Receipt screen select the customer you’re refunding. Then enter the date of the refund.

Under Payment method select the method used to refund the customer from the drop-down.

Payment method drop-down on the Refund receipt screen in QuickBooks Canada

Under Refund from select the account that the money is coming out of.

If you select a chequing account you’ll be able to enter the cheque number. If you’re doing an e-transfer from a chequing account you can delete the number in the Cheque no. box.

Under PRODUCT/SERVICE select what product/service the customer is getting a refund for.

DESCRIPTION will be automatically filled in after you select a product/service. You can edit this if you’d like.

Next enter the QTY of product/service that is being refunded and the RATE.

Under SALES TAX select the appropriate sales tax code for the refund.

The sales tax will be calculated and added to the total.

Here’s an example of what this looks like:

Filled out refund receipt in QuickBooks Canada

You can now click the green Save and close button.

This process creates a record of the refund you issued to your customer in the client record, sales tax module, and bank register of QuickBooks.

When the money comes out of your bank account you’ll be able to match the bank record with the refund receipt.

Note: This process is just logging the refund in QuickBooks. It does not actually initiate the refund to the customer.

You now know how to record a refund in QuickBooks Canada.

☕ If you found this helpful you can say “thanks” by buying me a coffee…
https://www.buymeacoffee.com/gentlefrog

Below is a video if you prefer to watch me show you how to do this.

If you have any questions about recording refunds in QuickBooks Canada click the green button below to schedule a free consultation.

Need some one-on-one QuickBooks assistance?
Share Now

This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Gentle Frog, LLC does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Gentle Frog, LLC does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.

Leave a Reply

Your email address will not be published. Required fields are marked *

Read similar articles

How to Manage Incorrect Payee and Category Suggestions in QuickBooks Online with Bank Rules

Learn how to use bank rules to make sure you don't incorrectly categorize transactions.

Testing SupaClerk Bank Statement Conversion to CSV for QuickBooks Online Import

Learn how to convert a PDF bank statement into a CSV and then import it into QuickBooks Online.

Have a QuickBooks / Bookkeeping Question?

Let me know what you’d like to see in future videos, blog posts, and courses.

Review Your QuickBooks

Are you a small business owner struggling to make sense of your QuickBooks data?

  • Discover how to spot costly mistakes in your bookkeeping and fix them quickly and easily.

  • Save time and money by streamlining your bookkeeping process and reducing errors.

  • Learn how to identify trends in your financial data so you can make smarter business decisions.

  • Get organized and stay on top of your finances by tracking expenses, managing receipts, and closing your books effectively.

Sign up now for this free mini-course and start mastering the essential bookkeeping skills that every small business owner needs to succeed!

FREE Mini Course

Sign up now and enjoy the peace of mind that comes with knowing your bookkeeping is accurate, up-to-date, and free from costly errors.

We won’t send spam. Unsubscribe at any time.

Review Your QuickBooks

Are you a small business owner struggling to make sense of your QuickBooks data?

  • Discover how to spot costly mistakes in your bookkeeping and fix them quickly and easily.

  • Save time and money by streamlining your bookkeeping process and reducing errors.

  • Learn how to identify trends in your financial data so you can make smarter business decisions.

  • Get organized and stay on top of your finances by tracking expenses, managing receipts, and closing your books effectively.

Sign up now for this free mini-course and start mastering the essential bookkeeping skills that every small business owner needs to succeed!

FREE Mini Course

Sign up now and enjoy the peace of mind that comes with knowing your bookkeeping is accurate, up-to-date, and free from costly errors.

We won’t send spam. Unsubscribe at any time.