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cv20221
December 21, 2022
Solved

Customer Refunds

  • December 21, 2022
  • 2 replies
  • 0 views

Hello, I have an issue where our deposit for a day is less than our deposit summary for the same day because of a refund that went out that does not post as a separate transaction in our bank due to our payment capturing system only posting a lump sum for end of day. So since our banking transaction deposit is less than our deposit summary from QBO, I cannot even match the transaction to the bank deposit and resolve the difference. I already tried creating a refund receipt to represent the refund that was issued and tried including it into the bank deposit somehow but that does not work. Is there any other way I can balance this issue?

Best answer by Laura1040

Did you trying posting the Refund Receipt to Undeposited Funds and all of the Payments to Undeposited Funds.   Then when you click on all of them to make the deposit  they should match up to the amount of the net deposit you received.      For example if you had 2 invoices that total 500; and 1 refund of 100 the net is $400.  If all of these went to Undeposited funds you would click on the 2 positives that = 500 and the negative 100 for a total of 400.

2 replies

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Laura1040Answer
December 21, 2022

Did you trying posting the Refund Receipt to Undeposited Funds and all of the Payments to Undeposited Funds.   Then when you click on all of them to make the deposit  they should match up to the amount of the net deposit you received.      For example if you had 2 invoices that total 500; and 1 refund of 100 the net is $400.  If all of these went to Undeposited funds you would click on the 2 positives that = 500 and the negative 100 for a total of 400.

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    cv20221Author
    December 21, 2022

    This worked. Thank you! 

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    FateCandylaneT
    December 21, 2022

    I appreciate you reaching out to us in the Community, @cv20221. Let's ensure you're able to have your deposit accounts balanced in QuickBooks Online (QBO).

     

    Laura1040 is correct. We can create a Refund Receipt and deposit it to the Undeposited Funds account to balance your bank deposit with your deposit summary. You can consider taking the steps outlined above.

     

    Additionally, we can include the payment amount recorded to Undeposited Funds and add Refunds to customer accounts under the add funds to this deposit section. To do this:

     

    1. Go to Sales and select Invoices.
    2. Locate and click on the specific invoice.
    3. Select Edit invoice.
    4. Click Receive Payment.
    5. On the Outstanding Transaction, put a checkmark on the box of the specific invoice.
    6. Click on the dropdown arrow in the Deposit to option, then locate and select the Undeposited Funds.
    7. Click Save and close.

     

    These are the steps to add the customer's refund and to make the deposits balanced:

     

    1. Click on the +New icon and select Bank Deposit.
    2. Put a checkmark on the box of the payment received from the specific customer.
    3. In the Add refunds to this deposit dropdown, click Refunds to customers under the account column.
    4. Enter the refund with a negative amount.
    5. Once done, click Save and close.

     

    I've provided screenshots for reference. 

     

     

     

     

    Furthermore, you can check out these articles for additional guidance and reference about using the Undeposited Funds account: 

     

     

    If you need further assistance with managing your refunds in QBO, feel free to comment below. I'm here to help. Stay safe!

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    Bishoffgirls
    July 7, 2024

    How do I do this with Quickbooks Desktop?  When giving a refund I am unable to select Undeposited Funds.  I'm only able to select a bank account.

    I'm coming across the same issue with reconciling credit card transaction payouts that include refunds and credits, because they refunds payouts don't go into Undeposited Funds, like standard payments.

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    JoanaC
    July 7, 2024

    Welcome to the QuickBooks Community. Let me help you with your refunds, @Bishoffgirls.

     

    The Undeposited Funds are only available in QuickBooks Online. We have three ways to refund your customer on QuickBooks Desktop. We can choose between Retain as an available credit, Give a Refund, or Apply to an Invoice. Follow these steps for issuing a refund:

     

    1. Sign in to QuickBooks Payments from QuickBooks Desktop.
    2. Click the Customers menu and then Credit Memos/Refunds.
    3. In the Customer: Job dropdown, select the customer you need to refund.
    4. Enter the products and services you need to refund.
    5. When done, select Save & Close. It will open an Available Credit window.
    6. Select Give a refund and then OK. If you want to give credit for future payments, select Retain as an available credit.
    7. In the Refund window, choose the preferred refund method from the Issue this refund via field. If selecting Cash or Check, specify the account for the refund payment.

    For credit card payments

    1. In the Issue, this refund via field, select the type of credit card you need to refund.
    2. Enter the credit card info, or select Swipe card and swipe the customer’s card.
    3. Choose the Process credit card refund checkbox.
    4. When you are ready, select OK.

     

    To learn more about refunds, refer to this article: Void or refund customer payments in QuickBooks Desktop.

     

    Moreover, let me share this article that can help you with QuickBooks Contractor payment and file 1099s: Create and file 1099s with QuickBooks Contractor Payments if you use QuickBooks Desktop.

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