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smallbusinessaccounting
April 29, 2021
Question

Process Refunds in Credit Card Batches

  • April 29, 2021
  • 1 reply
  • 0 views

Here are the questions I have:

- six invoices have been created ($100 each x 6)

- six 50% payments were processed in QuickBooks ($50) and applied to each invoice

- these deposit came in via a credit card batch payment from the third party payment processor; the $50 x 6 payments in QuickBooks were matched to the deposit in the For Review tab

- these 6 customers would like to cancel their purchases. I have transacted 6 x $50 refunds via the third party credit card payment processor. 

- I have created 6 x $50 Refund Receipts for these customers in QuickBooks.

- The credit card payment batch came in for this day ($1000 batch, minus the $300 refunds, resulting in a $700 deposit)

- what is the best way to cancel the invoices in QuickBooks? Void them? Delete them?

- what is the best way to match the $700 deposit with the various payments and refunds that make up this deposit amount? I do not see an option to match a refund receipt as part of the deposit (only see the option to match payments to the deposit amount. This leaves a $300 shortfall. I was going to use the Resolve feature on the Matching page, but QuickBooks only allows 5 Resolve items. I have 6.

 

1 reply

L
LauraAB
April 29, 2021

Hello smallbusinessaccounting,

 

It sounds like you know your way around handling these kinds of scenarios and I appreciate the detail you've included here for the steps you've taken so far. I want to make sure you're able to sort this out in QuickBooks Online so that you can get back to work.

 

Based on what you've described above, it seems to me that you've recorded a good deal of the transaction in your books, and now your question is narrowed down to whether you should void or delete the invoice and how to handle matching the amount from the banking feed. I'll start with voiding versus deleting the invoices.

 

When you're deciding whether to void or delete a transaction, the main question to consider is whether you should be keeping a record of this transaction in your books. Voiding the transaction sets it to zero, but still keeps the record in your files. Deleting the transaction removes it from your files completely. Since you have refund receipt transactions, it may be that voiding the transaction is best so that you can show why you provided a refund to the customer. Another option, depending on your scenario, may be to write off the balance of the of the invoices. Here are a couple of articles about those things.

If you're not sure which is the best option for the books, I recommend consulting an accountant. While I can direct you to potential steps to take, I cannot offer advice in this area. Now, I see your screen name includes "accounting" in it. If you happen to be an accountant yourself, I recommend consulting a colleague to see what their recommendation is.

 

If you aren't an accountant, you can use the My Accountant tab to connect with one. It provides the option to invite your accountant as a user to your books, or there's also the Find a pro to help button that leads to our list of QuickBooks-certified accountants in your area.

 

As for matching the amount in your bank feed to the various transactions you've got in the books, what I recommend is excluding the transaction. Because the payment processor handled this by depositing the sum amount of the payments and the refunds, there isn't a way to match it to all of these transactions. What you can do instead is select the transaction in the feed and then choose Exclude. You'll still be able to manually reconcile the amount later through the reconciliation process. I've got another couple of articles you can consider.

I hope this helps you get on track. Don't hesitate if you have further questions.

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