As to your question, let’s summarize what took place. If our understanding isn’t accurate, let us know. You sold merchandise for $180 (the merchandise sale). You accepted a return from your customer for $45 (the return). You gave your customer a check for $45 for the value of the return (the refund).

For the merchandise sale, you use an invoice or sales receipt. That takes stock out of inventory and creates either an A/R balance (the invoice) or reflects the customer paid for the merchandise in full (the sales receipt). For the return, you use a credit memo by clicking Create Credit Memo/Refund on the Customers menu. You record the item returned, and that puts it back in stock. If you have any restocking or other charges, you enter those as other charge items on the credit memo. When you save the credit memo, QB will ask whether you want to leave the credit as an available credit, give the customer a refund, or apply to another invoice. In your case, you refunded the money, so you’d choose Give a refund. If you want to change your selection at a later date, just open the credit memo, and click the Use Credit To button at the top of the form. When you choose to give a refund, QB will automatically open a window confirming the details of the check. By default, the refund check is marked To be printed, because QB assumes you’ll print these refund checks later, when you print other checks. If you’ve already given the customer the refund check, you can clear this check mark, record your check #, and the check will appear in the register for the bank account you selected.

You only know that your customer deposited your refund check because it cleared the bank (unless you are both the vendor and the customer), so when you reconcile your bank account the refund check will be there, along with all of the other deductions and additions.

Hope that helps.

I did send this comment to your site yesterday and it disappeared!

Thanks for your help.

Dean

Thanks

Obviously, Paychex and ADP are more expensive than QuickBooks, however, you lose the protection of having a payroll company take away the liability that comes with doing your own payroll. Payroll is exact…..and payroll errors are freququent amongst Quickbooks users. 1 in 3 business owners are penalized each year by the IRS and state agencies for errors with Employee witholdings, Employer contributions, W2′s. W3′s ( most of my clients don’s even know what a W3 is!) 941′s, 1099′s etc. Paychex and ADP gurantee against these penalties and take the liablity away from the client. Intuit does not.

When it comes to time, Paychex and ADP do everything for the client so the client doesn’t have to. Intuit is a do-it-yourself HELP application. It’s helps a client do it themselves. I work with a lot of bookeepers that use Intuit for their clients….they are bookeepers….THEY KNOW WHAT THEY ARE DOING! If you dont know what you are doing…Intuit will lead you in the path of bad service and payroll tax penalties and intrest.

I am biased when it comes to Paychex ansd ADP because I am a Paychex employee. I think the Paychex model of a one on one payroll specialist for each client vs ADP’s 1-800 wait on hold scenario works better for the SMB client. With that being said, they do a damn good job of payroll processing and tax filing. If ADP was a bad company, I wouldnt have a job, because there would be no real competition for Paychex. I battle ADP daily for sales with new clients…win some, and lose some. Thats just the way it goes. many clients go back and forth every few years between the two for savings or new promotions. Eventually, I believe Paychex will win out in the long run bevause of our service model and senior leadership.