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Pynes
September 23, 2021
Question

Reconcile bank transactions that include a refund and an invoice payment

  • September 23, 2021
  • 1 reply
  • 0 views

Hi everyone

 

I run an events business that takes a refundable security deposit from clients for each event. In most cases, the deposit will be refunded in full after the event, which I record using a refund receipt. However, it is not unusual for the client also to have an outstanding invoice by the time I refund the deposit, so I will net off the invoice amount against the security deposit and refund the balance. As a result, my bank feed only shows a single transaction for the net amount, meaning it does not detect a match automatically. Nor am I able to match it manually to the refund receipt and invoice, as they do not appear as available transactions.

 

Is there a way of matching the single bank transaction to the invoice and refund receipt, or is there a better way to be recording this in the first place?

 

Thank you!

1 reply

Adrian_A
Adrian_A
September 23, 2021

Thanks for the information, Pynes.

 

I'm here to share some ways on how you can record the transactions.

 

With QuickBooks, you can only find match transactions such as invoice and bank deposit. 

 

In your case, our only way is, record the refund using Undeposited funds. Afterwards, receive the invoice payment using the same account. Then, if the deposit is a positive amount, manually create a bank deposit and then select the invoice payment and refund receipt. 

 

If the deposit item is in a negative amount, you'll have to use a clearing account. This means that the refund is greater than the payment you received. Here's 

how to create a clearing account:

 

  1. From the Accounting tab, select Chart of Accounts.
  2. Click the New tab.
  3. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.
  4. Type in the Name for the clearing account.
  5. Make sure you do not enter any amount as the balance before clicking Save and Close.

 

Also, you can check out some articles below for additional reference:

 

Let me know if there is anything else you need help with managing your accounts in QuickBooks.

 

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