How To Create Credit Memo Or Refund Check In QuickBooks Desktop For Windows

As we know we can do a lot of things in QuickBooks, but sometimes the small situations make us think so deeply like, ‘How to create credit memo or refund check in QuickBooks Desktop for Windows?’. But there is nothing to worry, because, QuickBooks can perform any kind of accounting activity through its advanced features. Here in this blog, we are going to discuss the above-mentioned topic. Those who are wandering the solution for the same, this article will be a great opportunity for them to solve their problem.

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Steps to Create Credit Memo or Refund Check in QuickBooks Desktop for Window

Here we have provided the details of all step for you, on whose basis you will know the process of how to create a credit memo or refund check in QuickBooks for Window:-

Step 1: Create a Credit Memo in QuickBooks

In the first step create credit memo by following the below steps:

  • Open QuickBooks and head to the Customers menu and click on the Create Credit Memos or Refunds option.
  • Go to the Customer option, under the Job drop-down menu, and then click on the option of your customer.
  • Then, in the line item section, enter the items which are returned.
  • Finally, click on the option of Save, and Close.

Step 2: Select How You Want to Handle the Credit in QuickBooks

Here, in the second step, you need to choose one of the following (given below option) and then click on the option of OK, in the Available Credit window:

  • Retain as an Available Credit:- QuickBooks will automatically fill a negative amount in you are A/R register. You can use this amount for the payment of another transaction.
  • Give a Refund:- QuickBooks allows you to refund the amount in cash, credit card refund, or a check.
  • Apply to an Invoice:- The Apply Credit to Invoices tab will appear on your screen and you can choose the invoice for which you want to credit the amount.

In this step contains these option to handle the credit in QuickBooks, the details of the options are given below:-

Option 1: Through the Retain as an Available Credit

  • First of all, click on the option of Customers, and then select Receives Payments.
  • Look to the bottom-left side of the Receive Payments tab and click on the Refund the amount to the customer button.
  • You can find it under the Overpayment section.
  • Click on Save and Close.
  • Go to the Issue a Refund tab and provide all the essential information.
  • Click on Save, and Close to complete the process.

Option 2: Give a Credit Refund

  • Open your QuickBooks and head to the Banking menu and click on Write Checks
  • Provide all the essential information.
  • Select the customer in the Pay to the order of the drop-down menu.
  • Go to the $ field, provide the overpayment amount.
  • Open the Expenses menu
  • Click on the Accounts Receivable in the Account drop-down menu.
  • Choose the Customer: Job drop-down, then select the Customer.
  • Click on Save and Close.

Option 3: Apply a Credit to an Invoice 

Now, you must link the check to the overpayment.

  • Click on the Customers Menu then choose the Receive Payments.
  • Click on Customer in the Received from the menu.
  • Choose Discounts And Credits.
  • Go to the Available Credits area and click on the check which is created.
  • Choose
  • Click on Save & Close.

Option 4: Write a Refund Check

You need to create a credit memo first whenever you want to refund to a customer. When you can you do that one time, then you can also write a refund check by following the given below steps:-

  • For the refund, you can click on the option of Credit memo that you are looking to use.
  • Go to the top of the window, and then click on the option of Refund.
  • Then, you can validate all the information is correct.

Note: Use the Accounts Receivable as of the account in the detail area to ensure that QuickBooks will credit and refund correctly.

  • Click on the OK option.
  • Go to Customers option, and then click on the option of the Receive Payments from the main menu.
  • Then, you can click on the customer option for whom the refund check was written. And this given option will show you the amount of the credit added in the Existing Credit field and the refund check also.
  • Select the Apply Existing Credits option.
  • You can just provide the amount under the Payment column. And if QuickBooks does not enter it automatically and then click on the given option
    • You will have to click on the option of Create Credit Memos or Refunds if you choose the Customers option to show the credit memos you entered recently.
    • Then, click on the Transaction History option to see the refund check listed in the Transaction History with the Credit memo window.

So this was the blog, where you can know that, ‘How to create a credit memo or refund check in the QuickBooks Desktop for Windows?’. Further, if you get any problem, then you can get in touch with the Accountwizy ProAdvisors to troubleshoot your doubts.

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