Paypal refunds in Quickbooks

We are an e-commerce company and all our customer orders, with their own credit cards, go through a Paypal account. Had a problem with a customer and he filed a Paypal dispute and won. So Paypal refunded his payment in full.

We had already transferred his payment from Paypal (less paypal fees) to our bank account, and processed his order in QB's. How do I rectify this situation? Transfer the money back?? Please be specific how to do this as far as how to process his order which is input as a "sales order".

Thank you.


I would create a credit memo for the customer, use the refund option from the credit memo and write the check on the account PayPal will debit.

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SkinnyRaven , QuickBooks Pro Mac 2016/R25

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