How do I Create an RMA to Refund the Customer their Money rather than Fixing and Returning the Product? You need to process as an RMA without a return shipment and move the goods to finished inventory.  This will debit inventory and credit COGS.  Also, it will debit AR and credit returns. Write a manual check to the customer (setup as vendor) and post to a GL clearing account.  This will credit cash and debit the clearing account. You now need to do a manual packing slip and invoice posted to the clearing account to debit AR and credit the clearing account for the dollar value.  The clearing account will net to 0. Finally – do an AR offset to removed the AR credit and debit for the customer.