The Accounts Receivable module, when integrated with the Accounts Payable module, allows you to record customer refunds. A customer refund might be needed to repay an overpayment on a customer invoice, or to pay a customer for a miscellaneous credit memo that does not credit a specific invoice.
Many companies have Accounts Payable vendors who are also their Accounts Receivable customers. For these vendors/customers, Accounts Receivable invoices can be applied automatically or selectively to the vendor's balance, eliminating the manual matching process of issuing checks and posting payments.

To refund a customer

1 Add a Cash Clearing Account

2 Adjust the Invoice or Credit Memo

3 Create a Refund Check