Thanks for sharing additional clarification, Ballentine. I'm here to provide the steps to record the refund accurately.
The instructions shared by my colleague are applicable if you start the refunding process by issuing a check for the security deposit. You can follow the rest of the steps below to apply the credit memo and zero out the balance.
Here's how to create a check:
- Go to + New and then select Check.
- Enter the check information.
- In the Account details section, select the liability account you use for security deposits from the Account column dropdown list.
- Select Save and close.
Then, add a product or service item needed to create an invoice for the un-refunded part of the amount:
- Go to the Gear icon and then select Products and services.
- Select New.
- From the Product/Service information panel, select the appropriate type of item to create.
- Enter the product or service information for the item.
- Click Save and Close.
Once done, create an invoice for the un-refunded portion of the deposit:
- From + New, choose Invoice.
- Select the item you created.
- Enter the part of the deposit you're not returning in the Amount field.
- Hit Save and close.
After that, you can follow the steps shared by my colleague to complete the refund process. For more guidance, please see this article: Refund a security deposit in QuickBooks Online.
Please note that the steps above don't require creating a journal entry or refund receipt. If you prefer not to start over, I recommend consulting an accountant. They have the expertise to provide assistance and alternative options to help you properly record the refund without messing up your books. If you don't have one, I suggest using our Find QuickBooks Certified ProAdvisor tool to look for an expert near you.
Moreover, you can contact our QuickBooks Support Team to have someone guide you via phone or chat. They also have a secure screen-sharing tool to ensure everything is recorded accurately.
Finally, I suggest running and customizing your QuickBooks reports to track how your business is doing and focus on different aspects of your books (such as your sales, spending, and other parts).
Please know that you're always welcome to post here in this thread if you need additional assistance throughout the process. You can also share your other questions or concerns about creating sales entries and tracking refunds. I'm ready to help.
