It is normal sometime you need to refund customer for goods that rejected or an over charge on goods or services. In QuickBooks, how can you record a refund to customer?
You invoiced your customer on 10 July 2010 for a service of $749.00. Customer made a payment to you, full amount of $749.00, and you applied it to your invoice in QuickBooks. Then, on 20 July 2010, customer complained about the service and you decided to give them a full refund.
Since payment had already done, so how are you going to record this transaction in QuickBooks and give your customer a full refund?
To start, you need to create an Adjustment Note (Credit Note). An Adjustment Note is to create a negative balance in the Accounts Receivable account of this customer and to reduce the Sales account amount from your Profit & Loss report. The double entry will be debiting Sales account and crediting Accounts Receivable account. If you are creating an Adjustment Note for an Inventory item, then, Cost of Goods Sold account and Inventory Assets account will affected by this entry.
Once you created the Adjustment Note click the ‘Use Refund To’ button at the top of the Adjustment Note and select Give a Refund. QuickBooks will display an Issue Refund form for you to record the cheque details. This transaction will debit Accounts Receivable account and crediting Cash at Bank account.
Hope this is useful to you. To know more about QuickBooks; do sign up my QuickBooks Training Class at www.QB.sg.