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BrentSo
March 4, 2022
Question

Reconciling Shopify refund resulting in bank withdrawal

  • March 4, 2022
  • 1 reply
  • 0 views

Hello,

 

We processed a refund in Shopify for an order. We had a smaller transaction during the week, so Shopify withdrew the net amount from our bank account.

 

How can we reconcile/match the difference in the bank feed for the Credit Memo created in QBO because of the Shopify refund and the Shopify order? Here's a simple example of the transactions:

Refund for $100.00 in Shopify. This creates a Credit Memo in QBO.

Sale in Shopify for $50.00 (Invoice in QBO).

Withdrawal of $48.00/Spent in our Bank Feed. The withdrawal from Shopify is $50.00 invoice, less $100.00 CM less $2.00 Shopify Credit Card Fees.

 

I don't understand why QBO has a match function for deposits, but doesn't include Credit Memos in the list of open transactions. We could try to use 'Receive Payments' but that obviously won't accept a negative number. This seems like something should be pretty basic - essentially the reverse of the Receive Payments should be 'Make Payments' or 'Direct Refund' or an even better description.

 

Thanks! ~ B

1 reply

M
Mich_S
March 4, 2022

 

Thank you for posting in the Community, @BrentSo.

 

I have some information to share with you about how you can handle refunds on your account.

 

You can make a Credit Memo if a customer paid more than what was owed, returned a product, asked a refund, or was given a store credit. You may then apply it to an open invoice for a specific customer. 

 

Here's how you can apply a credit to the invoice:

 

  1. Open the Sales tab from the left pane.
  2. Click on Customers and select the customer’s name.
  3. Look for the invoice you want to apply the credit to and click Receive Payment.
  4. Enter the necessary information on the Receive Payment window.
  5. In the Outstanding Transactions section, ensure that the correct invoice is selected.
  6. Hit Save and close.

 

Let me also add a guide you can access in keeping track and managing your transactions in QuickBooks Online:

 

 

The Community has your back always. Feel free to comment back if you have other concerns with this matter or QuickBooks in general. Take care and have a good one!

B
BrentSoAuthor
March 4, 2022

Hi Mitch,

 

Thanks for the reply. Unfortunately, I think there is a misunderstanding. Hopefully, this explains it a little better:

 

1. We have one customer set up for our website sales.

2. The payment for the original invoice for the website sale was already processed in the bank feed in the Shopify deposit and was matched to that invoice. The invoice is marked as Paid in QBO ($100 Sale).

3. We have a Credit Memo in QBO for the refund given for the invoice above ($100 Credit).

4. We had an additional sale in Shopify and this is an invoice in QBO. This invoice is smaller than the Credit Memo ($50 Sale). The are $2.00 in Shopify credit card fees for this $50 sale.

5. Instead of Shopify depositing funds, it withdrew them from our bank for the transactions in #3 and #4. They withdrew $52.00 from our bank account ($50 Sale - $100 Refund - $2.00 in fees)

6. The bank feed shows $52.00 spent.

 

How do we match up the $52.00 spent in the Bank Feed to the two transactions? 

 

Normally with the Bank Feed we'd apply desposits from Shopify against the website invoices and do a resolving transaction for the credit card fees.

 

Hope this helps.

 

Thanks! ~B

 

 

 

 

M
Mark_R
March 4, 2022

I've got your back on matching two transactions to your downloaded transactions in the Bank Feeds, @BrentSo.

 

Since QuickBooks doesn't have an option to match a credit memo, you'll need to create a check and link the credit memo. This way, you can use the check to match it with your downloaded transaction. Let me guide you through the process.

 

Firstly, let's create a check and associate it with an Account Receivable (A/R) account. Here's how:

 

  1. Sign in to your QuickBooks Online (QBO) account.
  2. Click the + New button, then select Check.
  3. Leave the payee as blank and select the appropriate bank account.
  4. Go to the Category details section, then choose the Account Receivable account from the Category drop-down.
  5. Enter the amount ($50) of the credit memo and select the customer.
  6. Click Save and close.

 

Once done, you can now link the created check to the credit memo. To do so, you'll need to use the Receive Payments window. Let me show you how.

 

  1. Click the + New button and select Receive payment.
  2. Select the customer from the drop-down.
  3. In the Outstanding Transactions section, choose the check created.
  4. Go to the Credits section and select the credit memo.
  5. Click Save and close.

 

After linking both transactions, let's go ahead and match the check and the credit card fees to your downloaded transaction. Please follow the steps below:

 

  1. Go to the Banking menu and select the appropriate bank account.
  2. In the For review tab, find and choose the transaction you want to match.
  3. Click the Find match button.
  4. On the Match transactions page, select the created check and the credit card fee.
  5. Click Save.

 

I'm adding this article to learn more about matching transactions in QBO: Categorize and match online bank transactions in QuickBooks Online.

 

Once you're ready to reconcile your account, feel free to check out this article: Reconcile an account in QuickBooks Online. This will help make sure your QuickBooks transactions match your bank or credit card statements.

 

Should you need any additional assistance while matching your bank transactions, you can leave a comment below. I'll be sure to get back to you, @BrentSo.

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