Give a customer a refund

When you issue a refund (with a cheque or cash) to a customer, you can enter a refund receipt for your records.

Note: There are different refund procedures for:

• Prepaid orders
• Overpayment

To create a refund receipt:

1. Click Create (+) > Refund Receipt.

   Tip! If you have many refunds to record, you may find it faster to enter them from the account history instead. How do I enter from the account history?

2. Choose a customer to refund. Or, add a new customer.

   If you select a foreign currency customer, the currency and exchange rate are shown next to the Customer field on sales forms. The exchange rate shown is the rate that was in effect at the time of the transaction.

3. (Optional) Choose a Department/Location. If you don't see it, department/location tracking is turned off in Company Settings.
4. (Optional) If you use custom transaction numbers, you can edit the Refund No. If you use automatic numbers, you don't see Refund No.. The refund receipt isn't given a number until you save it.
5. Change the Refund Receipt Date to the date you are issuing the refund.
6. Enter each charge included in this refund.

   Service Date	Use the Service Date to indicate when a service was performed or a product was sold. If you don't see the Service Date column, you can turn it on. (To turn on: Click the Gear icon > Company Settings > Sales form content > Service date)
   Product/Service	If you don't see a Product/Service column, you don't have it turned on. (To turn on: Click the Gear icon > Company Settings > Sales > Products and services)
   Description	The Description text appears on the cheque associated with this refund.
   Qty/Rate	Together, Qty and Rate calculate the Amount for a line. If you don't see Qty and Rate, you can turn them on. (To turn on: Click the Gear icon > Company Settings > Sales > Products and services > Track quantity and price/rate) If you change the price/rate for a product or service, the change doesn't affect the rate for future uses of it.
   Class	(Optional) Choose a Class. If you don't see Class but want to use it, you can turn it on. (To turn on: Click the Gear icon > Company Settings > Advanced > Categories) .
   Amount	Enter an Amount if you didn't fill in the Qty and Rate.
   VAT	This field shows the VAT code for this charge.

7. To apply a discount, choose a percentage in the Discount percent field, or change the field to Discount value and enter a discount amount; the discount amount is calculated to the right of the discount box. If you don't see a Discounts field and want to use it, you can turn it on. (To turn on: Click the Gear icon > Company Settings > Sales > Sales form content > Discounts). More details
8. Add any shipping charges you are refunding to the Shipping field. If you track VAT, also select a Shipping VAT code.
9. (Optional) Enter a Memo.
10. Enter refund information:

    Refund Method	(Optional) Select the method of payment you will issue in the Refund Method field. Why is this useful? If you choose a card payment method, you can edit the card information from here. Optionally, you can save this information to the customer's record in the Customers page for use in the future. If you are using QuickBooks Payments, select Process card refund.
    Refund From	Select the cash, current, or bank account from which you want to issue this refund. If you are refunding using QuickBooks Payments, there's no need to make a Refund from choice. The amount will be withdrawn from the account for deposits you identified when you set up the service.

See also

What account does a charge post to?