- Click on Customers Center ( or Clients) on the left to get to the list. Over to the right of the list there is a grey gear icon (Settings). It is next to Print List and Export to Excel)
- Don’t confuse this with the blue gear icon on top.
- Place a check mark in the box by Include inactive.
- Click on the Customer (Client( name, then Make Active.
Just open a new bank account type and call it Cash account.
Use this account for all cash related expenses. Add to Cash account, if you are making cash withdrawals from main checking account. You will have running Petty Cash account. In fact, it will be more accurate accounting if you have cash withdrawals and disbursements for business.
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
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.
- SAVE. DONE.
Go back to Customer center again. Everything should be cleared off now.
SEE ATTACHED SCREENSHOT PHOTOS FOR REFERENCE.
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.
To do this job, you can run “Sales by Customer Summary” report.
You will need to customize the report to show daily sales and change to cash basis.
If you are using custom fields for sales rep on the Invoice, you can match the sales by Sales Rep as well.
See attached screenshot photo1, photo2 and photo3 for reference.