Check Credit Memo Customer Center Customers Customers Center Refund Receipt

How to refund to customer remaining balance of a credit memo in the form of a check to customer?

In order to refund customer by check, from the home page screen, go to plus (+) sign

  • Select “Check” under Vendors heading
  • Payee = Customer’s Name from the list (that you are writing check payable to)
  • ACCOUNT = Accounts Receivable (A/R)
  • AMOUNT = Refund check amount
  • SAVE

Go back Customer center (blue navigation bar on the left)
Locate the customer you just made the payment to. You will notice zero amount balance, but it will also say TWO open invoices. Just need to clear this taking another step. Very easy!
From home page screen, go to plus (+) sign

  • Select “Receive Payment” under Customers heading
  • Select Customer from the list
  • You will notice both check payment and credit memo with amount received as zero, all in one place checked off.

Go back to Customer center again. Everything should be cleared off now.

Customer Refund Check
Customer Refund Check
Receive Payment to clear zero amount
Receive Payment to clear zero amount
Credit Memo Customer Center Customers Customers Center

Customer Refund not zeroing out account

If you have credit balance in customer’s account (A/R) and need to refund customer by payment (by check or by online), you should be using Check or Expense under Vendors header, not Refund Receipt form which works differently.

From home page screen, click “+1” sign
Select check (or expense if you paying online) under Vendors header
Select Customer from drop-down that need refund
Go to Account under Account details = Accounts Receivable (A/R)
Amount = refund amount
Save and Close
This entry will clear customer balance due account.

Note: If you have already used Refund Receipt form for this customer, need to delete that entry. That entry all it does is, takes out money from the bank account and also will reduce the income (or selected account for product/service). It does nothing with Customer account/Accounts Receivable account.


When to use Refund Receipt under Customers header?

If you have originally created Sales Receipt, to invoice your customer and payment received at the time of sale, and now you need to refund money to your customer that is only time use “Refund Receipt” form.

When to use Credit Memo under Customers header?

You have originally created Invoice and received payment and account has zero balance. And, you need to refund money (for whatever reason over-billing / returned item), you will need to create Credit Memo first. And, then issue refund money, using either check (or expense) form under Vendors header.