How to Issue a Refund Receipt in QuickBooks Online

In this QuickBooks tutorial, you’ll learn how to issue a refund receipt.

A refund receipt should only be issued when your customer already paid their invoice. 

If a customer has not yet paid for an invoice and you’d like to wipe out their balance you can use a credit memo. You can find instructions for that in my blog post How to Create a Credit Memo in QuickBooks Online

Quick Instructions:

  1. Click the +New button
  2. Click Refund receipt under CUSTOMERS
  3. Fill in the Refund Receipt page
  4. Click Save and Close

Keep reading for a complete walkthrough with screenshots:

Issuing a Refund Receipt

To issue a refund receipt click the + New button in the upper left corner then select Refund receipt under CUSTOMERS.

Fill in the Refund Receipt page:

  • Customer: Who is receiving the refund
  • Refund Receipt date: The date the refund is processed
  • Payment method: How is the refund being processed
  • Refund from: Which of your accounts the money is coming from
  • PRODUCT/SERVICE: The product or service the customer originally purchased
  • QTY: The amount of the product/service that was purchased
  • Rate: The price of the product/service

When you’ve finished filling out this screen click the Save and Close button in the right corner.

A filled in Refund Receipt in QuickBooks Online.

A pop-up will appear letting you know your refund has been issued.

Refund successfully issued pop-up in QuickBooks Online

WARNING! Issuing a refund receipt in QuickBooks DOES NOT refund your customer. This is a receipt of a refund. You must process the refund elsewhere. Whether that’s handing your customer cash, using a credit card processor, PayPal, Stripe, etc.

When you view your customer’s details you’ll be able to see both the original sales receipt and the refund.

Viewing a customer with a refunded sales receipt in QuickBooks Online.

Refund on the Bank Register

Let’s see what this looks like on the Bank Register.

Click Accounting -> Chart of accounts in the left side menu.

Navigating to the Chart of accounts in QuickBooks Online.

Find the account that you used in the Refund from field when creating your refund receipt. Click view register on the right.

Opening the register for a checking account in QuickBooks Online.

This is ordered by date so I can see at the top the refund (PAYMENT) then lower down the original sales receipt (DEPOSIT).

Sales receipt and refund in the register of a checking account in QuickBooks Online

You now know how to issue a sales receipt in QuickBooks Online. 

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Below is a video if you prefer to watch a walkthrough.

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

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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.

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