Issuing refunds

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:

1. Locate the fully paid invoice.

2. Right-click on the Invoice, or use the Actions menu to select Create Credit from Invoice.

3. Decide whether to refund the client or keep the credit for future use.

Use the detailed instructions below for more guidance.

Steps to refund an invoice

Locating the invoice

Refunding an invoice begins with finding the relevant fully paid invoice in the system:

1. Navigate to the Invoices tab under Business.

2. Use the filters or search bar to locate the specific invoice.

3. 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:

1. Right-click on the invoice or open the Actions menu (three dots next to the invoice).

2. Select Create Credit from Invoice from the dropdown options.

3. 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:

1. Navigate to the Accounts Receivable (AR) account for the client (e.g., Client Invoices - [Client Name]).

2. Locate the credit or payment entry.

3. Right-click on the entry and select Issue Refund. This will open the Receive Payment/Refund window, where you can proceed with the refund.

4. Review the information in the Issue Refund window.

5. 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:

1. Leave the credit in the client's account for future invoicing.

2. 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.