How to handle a return

[Jeyamaran]

Hi,

I have some customers who has returned their items and I issued a refund for them. Then I used the credit memo to show this in QB. But it shows a negative balance(it should be $0) in the customer report. Eventhough I have reconcilled my bank accounts, I can never get rid of this negative balance.
So, What I am worried about is, If that customer buy something in the future, will this negative balance get adjusted for the new purchase?(which would be terribly wrong)?
How do I fix this? Please help me.
Thanks

[crazysonoran]

Just like you do when you receive a payment you need to attach the credit memo to the payment you made to them. Kinda the same thing but different. When you "wrote a check" to them it created balance on their A/R account, the credit memo is essentially the payment. At least if it was entered that way.