Refunds

Refunds

When a customer has a credit memo, and you want to refund the customer their payment, there are two processes depending on whether you are using QuickBooks Online or QuickBooks Desktop. You can also apply the credit to an open invoice or refund their credit card in full.

!Keep in mind that iPoint does not process refunds. A refund is an amount payable to your customer, and all Payables are handled in QuickBooks. The exception is if you are using integrated credit card processing, in which case you’ll refer to Refund Celero

Refund Celero

If your company is using Celero (or any other integrated credit card processor for that matter), here are the instructions on how to process that transaction in iPoint and QuickBooks.

1. Open the invoice where the customer made the original purchase.
2. Click the Payment Details button.
3. On the Payment Details pop-over window, click the Refund button.
   • Note: At this time, we cannot do a partial refund of a customer’s purchase. You’ll need to void the entire transaction and then create a new invoice with the items that were NOT returned. This is only if you are refunding the customer’s payment using integrated credit card processing.
4. Answer Yes to the question, “Are you sure you’d like to refund/void this payment?”
5. iPoint credits the money back to the customer through your Celero account.
6. Next, you need to void the invoice. Click Invoice Options > Advanced tab > Void Invoice. Voided invoices are held for reference but have no financial implications.
7. If the invoice was previously synced to QuickBooks, you would notice that the green sync confirmation dot has changed to orange. This means you need to push these changes to QuickBooks.
8. Click the QuickBooks button and select Push Changes To QB
9. Now open the customer’s account in QuickBooks.
   • You’ll note that the invoice is now set to $0.00
   • But you’ll also see that the payment is still showing as a credit on the customer’s account.
10. Since the refund from iPoint doesn’t push to QB, you need to do that manually in QuickBooks.
    1. Double-click the Customer Payment (iPoint originally pushed this to QB)
    2. In the payment window click the Refund The Amount to the Customer button
    3. Click Save & New
    4. In the Issue a Refund window, enter the refund details you gave in iPoint.
    5. DO NOT click the Process credit card refund when saving checkbox. Since we already processed the refund through Celero in iPoint, you don’t want to refund the payment a second time.
    6. Now, the customer balance is $0 in QuickBooks. The refund has been paid to the customer through Celero in iPoint.
    7. To view these transactions from a banking perspective, go to the Record Deposits in QB. You’ll see both the original payment and the refund (assuming you haven’t previously reconciled the original purchase).

Refunds using QuickBooks Desktop

1. In the Accounting Module, click the Credit Memos button.
2. Enter your customer’s name and the products/services that are being returned.
3. If you create a negative balance invoice, iPoint will prompt you to convert it to a Credit Memo.
4. In the payment section, click the Credit Options button
5. Click the Refund tab and select a refund method before clicking the Refund Balance Available button.
6. Notice that the credit “payment” shows PENDING.
7. Click the QuickBooks button at the top right of the Credit Memo and Push Credit Memo to QuickBooks Desktop.
8. In QuickBooks, open the Credit Memo and click the “Use credit to give refund” link at the top of the screen
9. Once the payment is processed, go back to iPoint and open the Credit Memo.
10. Click the QuickBooks button and then click the Pull Payments from QB button.
11. iPoint will pull the payment you created in QuickBooks Desktop and zero out the Credit in iPoint.
12. Notice that the credit payment detail has changed to Reconciled.

Refunds using QuickBooks Online

1. In the Accounting Module, click the Credit Memos button.
2. Enter your customer’s name and the products/services that are being returned.
3. If you create a negative balance invoice, iPoint will prompt you to convert it to a Credit Memo.
4. In the payment section, click the Credit Options button
5. Click the Refund tab and select a refund method before clicking the Refund Balance Available button.
6. Notice that the credit “payment” shows PENDING.
7. Click the Details button next to the PENDING flag and click the Clear Pending Status button. This will set the refund status to Reconciled.
8. Click the QuickBooks button at the top of the invoice and check the “Do Not Sync with QuickBooks” checkbox.
9. Now, you will have to manually enter the credit/refund transaction in QuickBooks Online as a Refund Receipt for your customer.

Apply to Open Invoices

You can also apply a credit memo directly on an open invoice. Once the Credit Memo has been created, follow these steps:

1. Open the invoice by going to Accounting > Invoices and selecting the Invoice
2. At the bottom of the screen, choose the green New Payment/Credit button
3. In the Payment window, click the Credit Memos (tab)
4. Select the Credit Memo you wish to apply from the list by clicking the Select Button
5. Enter the Amount to Apply in the window at the bottom of the screen. You can choose to apply the entire amount of the Credit Memo or a partial amount
6. Click Apply
7. Both the Credit Memo and Invoice balances will be reduced by the amount you chose to apply

For a complete explanation on how to process refunds with QuickBooks, watch this helpful video.

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