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DSI-Lesley
October 5, 2024
Question

Credit card and PayPal refunds to customers and matching deposit in bank transactions

  • October 5, 2024
  • 1 reply
  • 0 views

Hi - When a customer returns something I process a Refund receipt to credit the customer in Quickbooks and put the item back in stock.  When this is processed I have to select the account for the refund and selected the checking account, but this was originally paid on a credit card or with PayPal.  Then when I receive a credit card settlement or PayPal deposit the total amount is less the amount credited.  The refund receipt already deducted it from the bank account so how do I match the deposit received?  For example I receive a credit card settlement deposit for $900, but the total of invoices paid is $1000 and the refund credited is $100.  I can't figure out how to match up the deposit in the bank transactions.  The refund doesn't show available to match because it was already deducted.  Hopefully this makes sense!  I would appreciate some help and suggestions on how to deal with these returns.  I am not sure doing the refund receipt is the correct way.  Thanks!

1 reply

L
LollyNino_C
October 5, 2024

Hey there, @DSI-Lesley. It seems like you’re experiencing a situation that many users encounter. Let's resolve this together.


We're aware of the challenge of reconciling bank transactions when a refund has already been deducted. We'll guide you through the process and provide some tips on how to handle returns in QuickBooks. Let's dive into it and find the best solution for you!

 

It can be tricky to match deposits and invoices for credit card or PayPal transactions due to third-party fees. We can use the Resolve Difference feature to help match transactions until they equal zero. Just be sure to accurately record refund receipts in the right QuickBooks account to avoid any issues.

 

Here's how: 

 

  1. In the left menu, click Transactions then go to the Banking Transactions tab and select the Bank account. 
  2. In the For Review tab, locate and click the transaction to expand.
  3. Select the Find match button to open the Match transactions window.
  4. Look the transactions for the match. You can also use the filters to narrow down your search.
  5. Scroll to the bottom of the table, and then click the Resolve Difference button.
  6. Enter the invoice details and make sure the total is zero.
  7. Once done, click Save.

 

By completing these steps, you will have matched the bank deposit to the refund receipt, which will help you reconcile your bank account and make sure that your QuickBooks records accurately reflect all refunds and payments made.

 

I've added this article as your guide in reviewing and categorizing your bank transactions: Categorize online bank transactions in QuickBooks Online.

 

You can read this helpful article if you want to match your bank and credit card statements in QBO: Reconcile an account in QuickBooks Online.

 

If you require any additional assistance or have any questions about refunds or matching bank transactions, drop a comment in this thread. I'm always here to help you with any other queries you might have, so don't hesitate to reach out to me anytime. Your satisfaction is my top priority!

D
DSI-LesleyAuthor
October 10, 2024

Hi - Thanks for your quick reply. I tried doing what you had outlined in your message, but I don't see what you are referring to.

First you have go to the customer and click on the 'Refunds and Credit Tab'. I don't have that tab , but I can find the refund listed.

When I select the refunded invoice I don't have "Transaction History' section.  There is an option on the menu for "Transaction Journal".

When I click on the refund receipt there isn't any 'Match' hyperlink and I don't see any deposit section.  See screenshot attached.

I think I must be missing something or there is a step that I am not doing.

 

These refunds are really messing up our accounts.  I need to process the refund to put the item back in stock, but when I do it takes the money from our checking account.  Then when I get a deposit in bank transactions which is less this refund if I try to match it isn't there or it takes the money out a second time.

 

Something I am doing is all wrong because it is making our checking account balance off and I am having issues matching bank deposit transactions

 

[attachment removed]

S
ShyMae
October 10, 2024

Accurate bank deposit matching is crucial for maintaining precise and error-free financial records. I'm here to assist you in achieving this seamlessly, Lesley.
 
Before anything else, please know we removed your attached screenshot as it contains your personal information.

The instructions shared by my colleague are specific to QuickBooks Desktop, that's the reason why there's no Refunds and Credit tab.

In your case, we'll have to open the Receive Payment transaction linked to the invoice and choose the Undeposited Funds or Payments to Deposit. 


Once done, please review the Refund Receipt and ensure the correct account is selected. 

After completing this process, let's create a bank deposit and input the total refund amount as a negative value.

  1. Click +New, then Bank Deposit. 
  2. Navigate to the Select the payment included in this deposit section.
  3. Tick the Payment entry. Head to the Add funds to this deposit area. 
  4. Choose an account. Refer to your accountant what to pick.
  5. Input the total refund amount as a negative value. Complete all the necessary details. 
  6. Save and close. 

Please see the attached screenshot for visual reference.
 


Now, you can match your deposit with the transaction we created.
 


I would still recommend consulting your accountant for the proper account to choose and taking the process above. This method will ensure your books are accurate and free from any discrepancies. 

Moreover, I'm adding these additional resources to help reconcile your transactions in the future:

 

Let me know how it goes after taking the steps and consulting your accountant. I’m ready to step in and support you if you have other queries. Best wishes! 

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