Hello there, @MK_APWC.
Let me help you clear things up on how a credit memo and a refund receipt work in QuickBooks Online. A refund receipt is issued when a customer requests an immediate monetary return, whereas a credit memo is provided when a customer prefers to have a credit applied to their account for use in future transactions.
You can follow the steps below to refund your grantor (AKA customer).
- Select the +New icon. Then, click Refund Receipt.
- Choose the customer that you want to refund.
- Choose a Payment method and select an account for the refund in the Refund From field.
- Click Save and new.
For more information, you can refer to the following articles:
Record a customer refund in QuickBooks Online
Create and apply credit memos or delayed credits in QuickBooks Online
I also recommend consulting your accountant for further assistance on accurate recordkeeping. If you don't have one, you can a professional through the QuickBooks ProAdvisor page.
Should you have any questions regarding credit memo, refund receipt, or other QuickBooks-related issues, please leave a reply below. The Community is always available to assist you 24/7.
