Keeping a track of your customer list and keeping your customers happy by giving them credits for a return can be a successful tactic for your business. With QuickBooks, you can create memos or initiate a refund check through some basic steps. This article will help you to record a credit memo or refund in QuickBooks.

Sometimes recording a credit memo or refund can be a bit complex process for new users. Following the steps provided in this article will surely helpful for you. You can also contact us at our toll-free QuickBooks Customer Service Phone Number +1-866-701-7446 if you want an instant resolution for your issues.

Credit Memo

Refund Check

  • Credit memos are used to return a product for which a customer has paid.
  • You can apply the credit amount in the next invoice you will create for the customer.
  • Credit amount can be applied in the next invoice of your customer
  • Helps you to track your sale, payment and return item
  • Refund checks are basically used when there is an overpayment. QB users use Refund check when the customer will ask for a refund.

How To Create A Credit Memo In QuickBooks?

  • From the main menu, go to Customers > Create Credit Memos/Refunds.
  • From the drop-down menu of Customer: Job, choose the customer for which you want to create a Credit Memo.
  • Enter the items to be returned under the Item section and then click on Save and
  • Select the following options from the Available Credit window:
    • Retain as an available credit: QuickBooks automatically fills a negative amount under you’re A/R register for the credit memo. This credit can be used as a payment for another transaction as well.
    • Give a refund: You have the option to provide a refund, in the form of cash, check or a credit card refund.
    • Apply to an invoice: QuickBooks runs the Apply Credit to Invoices window. Here, you can choose an invoice to which the credit will get applied.
  • Click on OK.

How To Issue A Refund Check

Option 1: Through the Receive Payments window

  • From the main menu, go to Customers > Receive Payments to go to the overpayment transaction.
  • From the Overpayment section, click on Refund the amount to the customer.
  • Click on Save & Close.
  • Provide all the required information in the Issue a Refund window.

Option 2: Through the Write Checks window

  • From the main menu, go to Banking > Write Checks
  • Fill in all required information.
    • Select a customer from the Pay to the order of drop-down list.
    • Enter the overpayment amount in the $
    • Navigate to the Expenses tab and then select Accounts Receivable from the Account drop-down.
    • Click on Customer: Job drop-down and select the Customer.
    • Click on Save & Close.
  • Link the check to the overpayment.
    • From the main menu, go to Customers > Receive Payments.
    • Select the customer from Received from drop-down list.
    • Click on Discounts And Credits.
    • Mark the check you created from the Available Credits section and then click on
    • Click on Save & Close.


Create a credit memo

  • Go to Customers > Create Credit Memos/Refunds.
  • Create a credit memo by selecting Create a Credit Memo or clicking on the Plus (+)
  • Fill in the required information to for credit memo/refund and then click on
    • In order to edit, choose a credit memo on the list and then modify the information as required.

Note: You also have the option to create sales forms using the Transaction Center.

Write a refund check

You need to create a credit memo first whenever you want to refund to a customer. Once you do that, write a refund check by following the given below steps:

  • Run the Credit memo that you are looking to use for the refund.
  • Click on the Refund option from the top of the window.
  • Validate all the information are correct. Note: Use the Accounts Receivable as the account in the detail area to ensure that QuickBooks will credit and refund correctly.
  • Click on OK.

Link the check to the payment

  • From the main menu, go to Customers > Receive Payments.
  • Select the customer for whom the refund check was written. This will show you the amount of the credit added in the Existing Credit field and the refund check.
  • Click on Apply Existing Credits.
  • Provide the amount under the Payment column. If QuickBooks doesn’t enter it automatically then click on
    • If you select Customers then you will have to click on Create Credit Memos/Refunds to show the credit memos you entered recently and choose Transaction History to see the refund check listed in the Transaction History – Credit memo window.

Note: You will have to link the check to the credit memo under the Receive Payments to allow QuickBooks to track the transactions correctly.

Reach Us For Support

The provided steps should allow you to record a Credit Memo or Refund in QuickBooks easily. However, sometimes you may face some complexities the process as well. In such situations, you need to get in touch with us at our toll-free QuickBooks Tech Support Phone Number +1-866-701-7446 and get your issues resolved instantly.


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