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L
lpayton
January 30, 2024
Question

Refunds

  • January 30, 2024
  • 1 reply
  • 0 views

Hello,

 

I used to work with QuickBooks Desktop, and when a customer would be issued a refund, we would enter a credit memo, then select refund and be able to add it to the deposit. 

 

I am cleaning up the books for a new company I am working for and they use QuickBooks Online. They use a 3rd party payment processing system, and have refunds that need to be applied in order for the deposits to reconcile.

 

How do I enter this into QuickBooks Online? I did a refund receipt, however, they were not charged the amount that was refunded so it is showing the refund, however, the "positive" amount is still showing in the undeposits.

1 reply

J
JamesAndrewM
January 30, 2024

Thank you for joining the forum and detailing your concerns about recording refunds into QuickBooks Online. I'm here to share information and guidelines to help you record customer refunds.

 

You can delete the refund receipt you created and follow these steps instead:

 

First, create a credit memo.

 

  1. Go to + New and select Credit memo.
  2. In the Customer field, choose the appropriate customer.
  3. Enter the Credit Memo Date, Amount, Tax, and Product/Service.
  4. Click Save and close.

 

Then, make the refund.

 

  1. Go to + New and select Expense.
  2. In the Payee field, choose or enter the desired customer.
  3. In the Payment Account field, select the bank where the money is being refunded.
  4. In the Category field, select the Debtors account (Accounts receivable).
  5. In the Amount field, enter the amount of the refund.
  6. Select the appropriate Tax in the Tax field.
  7. Pick Save.
  8. Next, go to + New and select Receive payment.
  9. Add the Customer and select the Payment method and Deposit to.
  10. The balance should be 0 as they will cancel each other out.
  11. Choose Save and Close.

 

For detailed information, refer to this article: Record a customer refund in QuickBooks Online.

 

Or, you can make a bank deposit and then add funds to this deposit and a negative amount in the AR account. You may refer to this article for the entire process: Record and make bank deposits in QuickBooks Online.

 

You may visit these links to guide you on how to categorize your transactions and reconcile your account flawlessly:

 

 

Please do not hesitate to reach out to us again if you have any additional concerns regarding QuickBooks. We are always here to assist you with any questions you may have. Stay safe!

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