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SavingWhales2022
September 24, 2023
Solved

The credit card company sent us a check for the credit balance. How do I post it? (ironically is a refund from QB )

  • September 24, 2023
  • 1 reply
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Hi,   AMEX sent us a check for a credit balance on our credit card account of $175.  We use QB Desktop Premier Nonprofit Edition 2021. We don't nave "customers"  we have "donors" so the "sales receipts  are donations which I enter in "Enter Donations ":Which AMEX is not in this case.,  I have no idea how to post this so that it shows up as a credit in the credit card account but came as a check and how to indicate it is not a donor so it does not show up in the "Biggest Donors Report".   American Express is in our  QB as a vendor. Do I have to create an "American Express " customer name to enter the check ? .  I also just noticed in the "Nonprofit Menu" that in addition to "Enter Donations" and "Enter Pledges" it also has "Receive Payments". Is that something I would use? Hmm..  Any ideas on how I enter this check for the credit balance refund are so appreciated! 

 

 

Best answer by Rainflurry

Hi Daniela, thanks for working on this question. I am confused though, by you answer.  Are you suggesting that I use a Journal Entry as the way to post the paper check that we received from American Express for the credit balance refund? The deposit of the check will be listed on the bank statement. Will the journal entry appear there? 

 

We don't have an accountant, BTW, as we are a small nonprofit and accountants are expensive.  

 

Again my issue is who to process the deposit into the bank of a paper check that is a refund for a credit card balance. 

 

It might be informative if QB would find someone in the company who likes challenges who will actually do this using the Desktop 2021 Premier Nonprofit Edition (has to be Nonprofit) and then walk me through the steps once they figure it out. I appreciate the work each of the 3 of you who have replied to this question have d put into it but I am still hoping someone at QB or in the Community who has done this at their nonprofit can answer this. 

 

Again, the situation is that American Express send the credit balance refund to us a paper check instead of a statement credit. How to post it so we can deposit it into the bank and not have it appear as a donation in the Nonprofit edition. 

 

Have a great week and I look forward to what QB comes up with. 

 

Regards,

Sue


@SavingWhales2022 

 

Are you saying that you had a $175.69 credit balance with AMEX and this check is for that credit?  If so, all you need to do is to create a bank deposit and assign your credit card liability account to the deposit under ACCOUNT.  You can enter AMEX (Vendor) in the RECEIVED FROM field but it's not required.  That will post the deposit to your bank account and a corresponding reduction in your AMEX cc liability so the amounts can be cleared against each other the next time you reconcile the AMEX. 

 

 

 

 

1 reply

R
RoseJillB
September 24, 2023

Hi there, SavingWhales.

 

Due to the different nature of businesses, QuickBooks presents different terminologies from each other with the same functionalities to comprehend the type of business you have. 

 

Similar to what you have mentioned, for other types of business, QuickBooks may label them as Customers but Donors for Non-Profit Organizations and Sales Receipts as Donations. Worry less as they work the same in recording your transactions in QuickBooks Desktop (QBDT).

 

Concerning recording the credit you’ve received from QuickBooks in American Express (AMEX) bank, I have the steps you can follow so we can account for them accordingly. 

 

Before that and just to let you know, there’s no need to set up your AMEX account as a customer and utilize the Enter Donations, Enter Pledges, and Receive Payments functionalities as these are used to record the donations you received from individuals, corporations, government entities, or other entities.

 

On top of that, this transaction won’t appear in your Biggest Donors Report as they’re not recorded as Donations.

 

To start recording, here’s how you can do that:

 

  1. Go to the Banking menu, and select Enter Credit Card Charges.
  2. Select the credit card account from the Credit Card drop-down. 
  3. Click the Refund/Credit radio button as we will be recording a credit to your account.
  4. Choose the appropriate Vendor name or your AMEX and enter the Date, Ref No, and Amount.
  5. Enter an appropriate memo to describe the transaction.
  6. Select the Expenses tab. Then, select the appropriate Accounts and enter the Amount. (If you’re unsure of what account to use, you can refer to your accountant for guidelines)
  7. Select Save & Close.

 

You can also consult your accountant for other suggestions for recording the credit in QBDT.

 

I also have here the resources that will give you more information about Non-Profit Organizations:

 

 

Please let me know if you have any follow-up questions or concerns about charitable transactions. I'm always here to answer them. Have a good one!

S
SavingWhales2022Author
September 25, 2023

Hi Rose, I still need an answer as your reply did not cover what we need to do to process the paper check from the credit card company. It is an actual check.  I do thank you for the details on how to apply a "credit refund" within the Credit Card Account. I do know how to do that and use that feature often when the credit card company applies the credit to the account/ statement.  I will keep that reply as it is a good explanation of the steps for doing that. Thanks! 

 

However in this case the credit card company, American Express, sent the credit refund as a CHECK that needs to be deposited in the bank.

 

1. Do I first post the credit card refund to the AMEX account or is that covered in Question #2 ?  If posted to both the AMEX account and as a deposit into the bank account will it appear that we received $175 twice? Hmm.. 

 

2. Depositing the Credit Card Refund CHECK.

 

What are the steps for  posting  the  $175 refund  that  came as a paper check  from American Express?  which we need to post it  to the bank account as it will be  deposited into our XYZ bank?  How to post it so it does not show up as a "donation" instead of a refund in our "Desktop 2021 Premier Nonprofit Edition  ? 

 

I look forward to your reply and appreciate your help ! 

Sue

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