How to Match Banking Transactions with Invoices and Refund Receipts

Question

Good morning,

I see SO MANY questions about this in the QB community, but not one answer that seems to make sense to me so I'm hoping somebody could help.

We use Shopify for ecommerce and integrate with QB, so it generates invoices in QB from our Shopify orders. Then, each day, we get our payout from Shopify. I go into my banking and match the payout to the invoices.

The issue here is that our payout today includes both invoiced sales, a refund (created a refund receipt in QB), and Shopify fees. How do I match this payout from Shopify with the invoices and refund receipt?

Thank you - I would so appreciate a response with all of the steps because I have to imagine most merchants are dealing with this!

MarsStephanieL · Accepted Answer

Hi Sarahann! I can't thank you enough for taking the time to review my question. This is one net deposit coming from Shopify into my bank feed (not separate). I created the refund receipt, checked "refund from undeposited funds," then created a bank receipt. I see the refund receipt there but I don't see the two invoices that were paid as part of this that I need to combine. And I need to match that bank transaction to one refund receipt and two invoices.

Last, after I do these steps, I will still have the shopify transaction in my bank feed. Will It match to the bank receipt or how does that work?

Thank you in advance if you can share the next steps?

Hi there, @jenuneekor.

I'd be glad to share some insights about matching your invoice, refund, and bank transactions in QuickBooks Online.

The refund process and the sales recorded will be recorded separately when matching. If the Invoice has been paid, you'll have to deposit it to the Undeposited Funds. Once done, you'll see a positive amount in the bank feed that is detected since it is an Income.

I'll show you how to record the transactions separately.

Recording a sale using an Invoice:

Create an Invoice.
Receive the payment and put it to the Undeposited Funds.
Deposit it to the Bank. Note: FollowStep 2 in the article.
Match it in the Banking page.

To record a Refund transaction:

Create a Refund transaction. Indicate the product, amount, sales tax, and other charges. Then, enter the Bank account you've used to refund your customer. You can check this sample screenshot:
Match it in the Banking page. I've added a screenshot for your reference:

When matching a refund transaction, you'll see a negative amount in the bank feeds since the money is withdrawn from your funds. This is why you're unable to match the invoice and the refund into one bank transaction. If the refund has been already sent to your customer, you'll have to wait for the bank feeds to update so that you can match it.

I've added an article for your future reference when you're ready to assess your business income and expenses through QuickBooks Online: Reconcile an account in QuickBooks Online. This also includes how you can undo the process or fix errors.

Please don't hesitate to tag my name if you need further assistance. It would be my pleasure to help. Take care!

Rasa-LilaM · Answer

It’s nice to see you in the Community, jenuneekor.

I appreciate the detailed information about your concern. Based on the scenario, we’ll have to create an expense to record the Shopify fee. This is to ensure you can seamlessly match the downloaded transaction.

Here’s how:

In your company, tap the New menu in the upper left and select Expense under Vendors.
On the Expense page, fill in the field boxes.
In the Category details section, go to the Category column and choose your Shopify fee.
Then, type a negative figure in the Amount column.
Click Save and close.

If you’re unable to set up the account for your fee, follow the steps in this link. You may want to check with an accountant for the specific category to use to keep your records correct.

Now that we’ve added the fee, you can start matching the downloaded data to the ones in QBO. Here’s how:

Go to the Banking menu on the left panel to select Banking.
From the list, choose the account you’re working on.
Choose the For review tab and mark the box for the payout and hit the Find Match radio-button.
On the Match transactions page, tick the boxes for the invoices, refund receipt, and expense.
Press the Save menu.

Check out this guide for more insights into this process: Categorize and match online bank transactions in QuickBooks Online.

Additionally, these articles provide an overview of how to handle bank feeds entries in QBO.

Keep in touch if you have any clarifications or other concerns. I’ll be glad to answer them for you. Have a great day ahead.

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