Do you have a customer that wants to return something or get a refund
And you're wondering how do you enter that into QuickBooks
then you're in the right place if we've never met before
Hi, I'm Kampfer. I love to help business owners
and bookkeepers create confidence and simplicity with QuickBooks.
And that's exactly what we do on this channel.
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So let me show you, it depends
on a few things,
how you enter this. Now, if you are looking for the desktop version,
you want to go up above or down below and find the desktop version.
This is for QuickBooks Online users,
specifically. So let's jump in
to QuickBooks Online.
So when you're in here, one of the things you're gonna
want to do first is you're actually gonna want to go look up
that customer if you don't already know
the detail about them,
depending on how you want to enter the refund
is gonna depend on how you did the initial
sale so to speak.
Now, this example is gonna be if you are coming in here
and you're creating an invoice
and receiving a payment, we're gonna and enter in a refund.
But first as I said,
you're gonna want to do a little bit of due diligence and research
if you haven't already. So you're going to go into that
So you gonna go into that customer.
And you're gonna find the customer who you're
either doing a refund for or a return,
you're gonna go ahead and click on them. And you're gonna look up the initial invoice
So let's just use Jeff
here as an example that he wants to do a
return for his $81.
So we're gonna go ahead and click on this
we're gonna look and see exactly what happened here.
So landscaping and maybe you did services and you decided that
you're no longer he you know,
something was overcharged or he didn't actually get the service
maybe he's not happy with it, it just depends
on the scenario.
But he had three hours at 25.
Now, maybe you're only crediting him than one hour,
maybe you're doing doing all three.
So you're gonna go up here, now you have two choices
there's actually two ways with which you could do this one
is to do an actual refund receipt,
this is what you're gonna do if Jeff has paid you,
and you're giving him money back. In this example,
we're actually gonna give him a credit memo, that means
we're gonna put money back on his account,
because he never paid for it this invoice.
And he will then
be able to have that in the future to apply
or at least apply against this,
maybe you're never gonna do any work with again
So we're gonna go down, you're gonna choose Jeff,
I typically recommend doing credit memos in your current timeframe
Because if you've already done sales tax or any of those things
if you try to go back and do prior clean up or old work
you want to make sure that this is current, okay.
If you're needing help with cleaning up actually have a cleaning up workshop,
I'll link it up above or down below if you're needing help with that specifically
So then you're gonna come in here and you're gonna look up the weekly gardening
that we had.
So weekly gardening,
it was three.
So we'll go ahead and put in the dollar amount,
which is gonna be 2575.
Now the initial one was taxable. So we want to make sure that we're actually
marking that as taxable.
If you don't know what the customer is, or you didn't have all the data,
what you could do is right click
and duplicate this
if you've done that to create tab, it's always a way to have more than one tab
available at the same time.
And then you can go back in, we'll click close on this one,
we'll go back in and open it. So that's a nice nice thing about having more than one,
if you don't know it off the top of the head, what you're looking at.
So you can go in here, and
he had California 8% sales tax.
So we'll go down here,
pick 8% sales tax.
And then you could put a little memo in here that says, the original invoice
that says,
the original invoice number, right.
And the details. So the invoice number was
1022 It's up here on the top,
and it was on 518
invoice
number 1022. And 518.
Asked, you can just put in the information ask for refund whatever it was
wasn't happy.
you just want to have details so that you know what happened, okay.
So then you're gonna come down here and you don't, you can choose to either sen it to them
or you can click this drop down and just click
save and close and then it never sends it to them.
Okay, so the thing that
QuickBooks Online does automatically
the desktop doesn't do is it will automatically apply it for you directly
so you'll notice
this is the original invoice it no longer has a balance
And it shows
that it's now been paid
And it shows against the credit memo. Right? So you can just actually click
on the invoice and it will show paid.
And if you want to look at the payments, as always, you can click on payments.
And I'll walk you through that, that is the credit memo.
So that's how you do it.
If your customer had an invoice,
maybe they only want a partial credit,
then you would come in here and you'd only do a partial credit
You can do this any way you want.
You can customize this to be only one if that's what you need it to be.
If it's not for this, it's like a customer satisfaction
adjustment, any of those things you can you can go in here and
make them do whatever you need.
So now let's go in and say okay, that's how we do a customer credit.
How are we gonna do a customer refund?
So let's go in here and look for a customer.
So here is one
where
Kate came in and purchase something from us.
Right?
And maybe she wants to return she decided to Return her design,
it could be a full refund,
or it could be a partial refund.
I'm gonna go ahead and duplicate this again, just so that we can
have the same screen open.
While we're looking at it
and now we're gonna go in and we're gonna actually refund in QuickBooks
in QuickBooks, the money
to Kate
So we're gonna come down here to new,
you come down here to a refund receipt,
and you're gonna choose your customer. So we're gonna go find Kate.
And then you're gonna choose your date that you're actually refunding her on.
And the payment method with which you're doing If you're gonna do a Visa card
you can choose visa. Now,
if you have your merchant set up, you can choose to do it through the merchant
If you don't,
you can choose to do the refund from
one of two things, either your undeposited funds, or your bank
either your undeposited funds,
or your bank account.
So if you have a merchant, if you are doing a visa
it might come from your undeposited funds, which is your overall amount of money
that you have available.
That's gonna be coming to you in a deposit.
So I'm gonna give you that example.
If not,
you could do check,
and maybe it comes out the bank account
directly and then the check number.
Okay. So you decide
what you need. I want to give you an example for merchants
just because more and more people are using merchant
so we're gonna take it from undeposited funds
undeposited funds is that bank bag,
if that's not something you're familiar with, you might want to check out
Confidence with QuickBooks,
where I go through more of like the how tos for this Okay, so
so we're gonna come in here,
and we are gonna go ahead and enter in our design work.
Okay, now
the original sales receipt, is she paid us
three
at 75 rate, so maybe three hours
or three times for 75 rate
for 225. Let's say that,
we're gonna give her back
one of those, so $75.
And then here, it could be
ok, didn't end up using entire three hours or whatever it is. Maybe
three hours or whatever it is.
maybe she prepaid for it. Okay, so we're getting her back to 75.
You can choose always look at your previous and see,
was it taxable or not? If the answer's no,
go back over here. You can see I'm just going back and forth.
Scrolling down. Now I'm gonna click here,
you can save and send it
or save and close that depends if you want to send it to the customer or not
I'm gonna go ahead and click Save and Close.
I want to show in a minute what happens to this undeposited funds.
And that's it, it says it's been refunded, and you click OK
And you'll notice that the refund is right here and it track
Now if you're wondering like what happened to the undeposited funds
when I go to actually make a deposit.
When you click on this,
you'll notice
that the 75 is in here as a negative.
So let's just say that we're gonna deposit all of these at one time.
you'll notice we click the first two
2062 and when I click the last one the 75,
it reduces it.
So that's the best way if it's a merchant,
and you're gonna be paying it all at one time, that you can handle it.
Okay
Let me know below, does that make sense?
Have you been wondering,
how do you handle
refunds, especially if it's involved with a merchant provider?
Like maybe you're using Stripe or even PayPal?
Even if it's PayPal, I typically recommend
and this would be going to a PayPal bank account.
it's also something I teach inside Confidence with QuickBooks, okay?
So then we'd say, yes.
do you want save it, we'd save it,
then that
deposit is recorded into our bank account,
we've refunded our customer and everything has been processed properly
So I gave you two different examples. One,
was what do you do
if your customer is just
is just
getting a return or credit on their account?
And the second is how do you handle an actual refund
for that specific customer, whether it's
from a merchant, or directly from bank account?
Or if you wanted, you could also choose from cash?
Let me know down below
What was the biggest aha takeaway?
And did you get all of your questions answered?
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I can't wait to see you inside our next tip and trick
If you are needing help with either cleaning up your QuickBooks
I will link that workshop above
or if you also needing help with like actually customizing
your QuickBooks, for your specific business.
I'd recommend Confidence with QuickBooks.
Thank you for being here.
can't wait to see inside our next tip and trick.
Bye.