This feature is currently in beta testing and may not be available for all users.
Refunds allow you to return money to clients when necessary, such as correcting overpayments or addressing canceled services. In Quicken, you can issue refunds and keep your financial records accurate and up to date. Follow the guidance below to handle refunds effectively.
Get started quickly
For a quick approach to issuing refunds, you can take the following steps. These actions help you quickly process refunds while keeping your records organized:
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Go to Business → Clients.
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Select a client.
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Select Issue Refund from the available actions.
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Enter the refund details, including the amount and account.
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Refunding a fully paid invoice in Quicken for Mac (QMac) ensures your client receives their money back while maintaining accurate financial records. Quicken simplifies this process by allowing you to create a credit from the original invoice and decide how to handle that credit.
Quick overview
Here are the basic steps to refund an invoice:
Locate the fully paid invoice.
Right-click on the Invoice, or use the Actions menu to select Create Credit from Invoice.
Decide whether to refund the client or keep the credit for future use.
Use the detailed instructions below for more comprehensive guidance.
Issuing a refund to a client
Refunding a client involves navigating to their account, entering the refund details, and saving the transaction. Quicken provides clear steps to ensure this process is simple and accurate:
Go to Business → Clients.
Select the client to whom you plan to issue a refund.
Select Issue Refund from the toolbar or the three-dot menu next to the relevant client.
Fill out the refund details in the Issue Refund window:
Date: Specify the refund date.
Business: If you have multiple businesses, select the correct business.
Client: The name of the client receiving the refund. This should already be filled in for you, but verify it is correct.
Amount: Enter the refund amount.
Account: Choose the account from which the refund will be issued.
Save the refund:
Select Save to apply the refund to the client's account.
Verifying the refund in client records
After issuing the refund, you should confirm that it has been recorded accurately in the client’s records. Quicken provides tools to verify the refund entry and status:
Go to Business → Clients.
Double-click the client to whom you plan to issue a refund.
Look for the refund entry, which will display the refund. The Type will be listed as Refund, and the amount will be a negative number in red, such as -500.
Things to keep in mind
When processing refunds, ensure that you consider key aspects of financial accuracy and workflow requirements. This ensures smooth handling and minimizes errors:
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Refunds can only be issued for payments received or credits applied to the client.
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Ensure that the payment account used for the refund has sufficient funds before issuing the refund.
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Steps to refund an invoice
Locating the invoice
Refunding an invoice begins with finding the relevant fully paid invoice in the system:
Navigate to the Invoices tab under Business.
Use the filters or search bar to locate the specific invoice.
Verify that the invoice has a Paid status to ensure it is eligible for a refund.
Creating a credit from the invoice
Once the invoice is located:
Right-click on the invoice or open the Actions menu (three dots next to the invoice).
Select Create Credit from Invoice from the dropdown options.
Quicken will generate a credit equal to the total amount of the invoice, which will now be associated with the client.
Handling a client credit
After creating the credit, you can choose how to proceed based on the client's needs:
Refund the client
Follow these steps to process a refund:
Navigate to the Accounts Receivable (AR) account for the client (e.g., Client Invoices - [Client Name]).
Locate the credit or payment entry.
Right-click on the entry and select Issue Refund. This will open the Receive Payment/Refund window, where you can proceed with the refund.
Review the information in the Issue Refund window.
Click Save.
Refunds can be initiated from the Accounts Receivable (AR) account, the Client tab, or the Single Client View. Each of these areas includes an Issue Refund button that serves as an entry point for this process.
Keep the credit for future use:
Leave the credit in the client's account for future invoicing.
When creating the next invoice for this client, apply the available credit to reduce the total amount due.
How refunds appear in reports
Refunds processed through the Create Credit from Invoice function will be reflected in financial reports as Returns and Allowances. For example, if you issued a $60,000 invoice and refunded it, the report will show the following:
Payment received: $60,000.00
Refund issued: -$60,000.00
Client credit held: $60,000.00
This ensures accurate tracking of both the refunded amount and the retained client credit, maintaining clarity in your financial records.
Things to keep in mind
An invoice must be fully paid before you can create a credit for it.
You can only create a credit once per invoice.
Keeping client credits for future invoices is a convenient option for ongoing business relationships, but always confirm the client’s preference.
By following these steps, you can efficiently manage refunds and maintain clarity in your financial records.