A refund is cash received due to an over-payment for goods or services or because a good was returned by a customer. There are various reasons why we give refunds, this may include over payment, order cancellations and bad debt write-off. You just have to be very careful in entering these things correctly on your system in order not to lose a few dollars you are trying to save.
Quickbooks helps you identify refunds quickly. You could start by selecting Customers, then click on Create Credit Memos then choose Refunds. Correctly select the customer and the job, then enter the items just as they appear in the invoice and after that, click Save & New. When the Available Credit opens, select Give a Refund and click on OK. The Issue a Refund window will open and should contain your entry. Verify if everything is correct and then click OK. The refund check is now ready to be processed.
If in any case a customer overpays an order without being issued an invoice, open the Customer Payment on Customer Center, click Transactions then Received Payments. choose the related payment. Click the correct button, then Save and Close. If the Issue a Refund window opens, treat it as you would when you dispatched return refund.