How to record a refund in QuickBooks
QuickBooks Desktop software is one fantastic accounting software that has always been regarded as one of the best accounting software of all times for more than a decade now by all categories of bookkeepers, accountants, and entrepreneurs. The software has various features and functions, you just need to go through all these features, and everything will become so easy when it comes to handling your organisation’s finances.
In this blog, you will learn more about recording the various transactions, refunds both credit and cash, so read all these steps very carefully. It is a matter related to some hard-earned money by you and your organisation.
Record a refund in QuickBooks
To deposit the refund of the cash into the cash account:
- At the top, pick Plus Icon (+), then Bank Deposit.
- Under Account, choose Account for Cash.
- Scroll down to the Add Other Funds portion for this deposit.
- Select or insert the name of the vendor under the Received from the line.
- Select Accounts Payable in the Account sector.
- Specify the check number.
- Choose Save and close.
These are the steps you need to follow in recording a refund in QuickBooks Desktop software. Now that you know how to record a refund in the QuickBooks Desktop software, you must learn how to record a refund when the other person uses a credit card which is what is detailed in our next segment.
How to record a customer credit card refund in QuickBooks
To record a customer credit card refund in QuickBooks Desktop software, you need to follow the steps that are as follows:
- At the top, click the Plus Icon (+), then select Cost or Verify.
- Pick the name of the vendor in the Choose a Payee drop-down.
- Leave the #, Date, Number, and Memo Reference / Check fields blank.
- Select Add for Outstanding Vendor Credit and Deposit from the Add to Cost or Add to Check section.
These are the steps that will surely help you record the customer credit card refund in QuickBooks Desktop software, and now that you know how to do it, you must read our next segment, which is about doing the same but in cash do read the following feature.
How to record a cash refund in QuickBooks
To record a cash refund in QuickBooks Desktop software, all you need to do is follow the steps that are as follows:
- Click the + New icon tab.
- Pick Cost or Review.
- From the Payee x drop-down, pick the customer you want to refund.
- Pick the bank account where you have deposited the overpayment from the Payment Account drop-down.
- Select Cash from the Drop-down Payment Form.
- Select Accounts Receivable in the Group column.
- In the number area, enter $50.
- Select Close and Save.
Then, let’s link the refund to the overpayment of the client:
- Tap the Update button.
- Pick Payment Receipts.
- Choose the same client or cost you used for the check.
- Enter the information that is required
- Under the Outstanding Transaction column, tick the expense check box or check that you have made.
- Close and hit Save.
Both of these steps completely cover how to record a cash refund in QuickBooks Desktop software. Lastly, you just need to know how to register a product refund in the next segment, so please read this carefully.
How to record a product refund in QuickBooks
When a client asks for a refund for an item or service, you will use refund receipts.
Remember: Make sure you haven’t entered a credit note yet to prevent a double refund.
- Choose + New.
- Select Receipt of Refund or Offer Refund.
- Click the drop-down Customer ⁇ and select the customer you want to refund.
- Pick the Refund From ⁇ dropdown, then choose the bank you have deposited for the invoice charge, too.
- In the Good or Service section, add all goods or services returned by the customer.
- Make sure to fill in the corresponding quantity, cost, number, tax, and other fields, then select Save and close.
These are the steps that will help you record a product refund in QuickBooks Desktop software. If you’ve read this blog until now, I must appreciate your time invested here, and I am sure that this will help you for sure.
To End With
Enormous features and functions surround QuickBooks Desktop software, and if you learn all the features managing the finance of any organisation will become a cakewalk for you. I hope that the aspects you’ve read can help you shortly while performing all these things using the QuickBooks Desktop software.
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