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PaulatCAE
May 23, 2024
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Restoring a customer invoice after a chargeback

  • May 23, 2024
  • 1 reply
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We are in need of help correctly booking a chargeback and restoring the invoice amount it was originally paid against. Here is what happened.

 

We invoiced a customer $900 via QBO and required a 50% prepayment of $450 to secure their event space. 

They paid $450 via a CC then about a week later requested a chargeback. 

We missed the dispute window and the chargeback took place. This has not been recorded yet in QBO but the $450 was pulled out of our account.

The customer called to say it was a mistake and asked us to rebill them. We need guidance on how to correctly book these transactions including how to properly record the flow of funds out for the chargeback so the original $900 invoice amount can be restored allowing the customer to repay the partial payment they charged back. 

 

I tried recording the chargeback as a negative deposit amount but it didn't seem to associate with the customer even though they were listed in the "Received From" field. 

Best answer by AlverMarkT

I'd be glad to assist you on this, @PaulatCAE. 

 

We can record the chargeback as a check affecting Accounts Receivable (A/R). Then, unlink the partial payment of the invoice to link it with the check. I'll provide the steps below to accomplish this in QuickBooks Online (QBO). 

 

First, create a check affecting the A/R account. You can follow these steps:

 

  1. Click on the +New button. Then, select Check.
  2. Select the date for the chargeback.
  3. Choose Accounts Receivable from the CATEGORY drop-down list. 
  4. Enter a $450 figure in the AMOUNT column. 
  5. Choose the customer from the Customer/Project list. 
  6. Type in a Description or replace the Check no. box with "CB" to note it's a chargeback.
  7. Review other details.
  8. Hit Save and close.

 

Next, unlink the partial invoice prepayment to link it to the check. Here's how:

 

  1. Locate the customer prepayment. To help in this task, use the Magnifying glass icon to search for the $450 customer's prepayment. 
  2. Select the payment transaction.
  3. Uncheck the invoice where the payment is linked. 
  4. Place a checkmark for the chargeback check.
  5. Hit Save and close.

     

You can then resend the same invoice to bill them again and have them pay online.

 

If you need to look at financial reports after this, let me add this article as a guide: Run reports in QuickBooks Online. 

 

Keep us posted if you have additional questions about recording chargebacks in QBO. We'll do our best to assist. Take care. 

 

1 reply

AlverMarkT
AlverMarkTAnswer
May 23, 2024

I'd be glad to assist you on this, @PaulatCAE. 

 

We can record the chargeback as a check affecting Accounts Receivable (A/R). Then, unlink the partial payment of the invoice to link it with the check. I'll provide the steps below to accomplish this in QuickBooks Online (QBO). 

 

First, create a check affecting the A/R account. You can follow these steps:

 

  1. Click on the +New button. Then, select Check.
  2. Select the date for the chargeback.
  3. Choose Accounts Receivable from the CATEGORY drop-down list. 
  4. Enter a $450 figure in the AMOUNT column. 
  5. Choose the customer from the Customer/Project list. 
  6. Type in a Description or replace the Check no. box with "CB" to note it's a chargeback.
  7. Review other details.
  8. Hit Save and close.

 

Next, unlink the partial invoice prepayment to link it to the check. Here's how:

 

  1. Locate the customer prepayment. To help in this task, use the Magnifying glass icon to search for the $450 customer's prepayment. 
  2. Select the payment transaction.
  3. Uncheck the invoice where the payment is linked. 
  4. Place a checkmark for the chargeback check.
  5. Hit Save and close.

     

You can then resend the same invoice to bill them again and have them pay online.

 

If you need to look at financial reports after this, let me add this article as a guide: Run reports in QuickBooks Online. 

 

Keep us posted if you have additional questions about recording chargebacks in QBO. We'll do our best to assist. Take care. 

 

P
PaulatCAEAuthor
May 24, 2024

Thank you! Exactly what I needed.

R
rvrfrf
May 24, 2024

Thanks for getting back with the Community, PaulatCAE.

 

I'm happy to hear AlvinMarkT was able to help with the process of restoring an invoice after a chargeback.

 

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

 

Please feel welcome to send a reply here or create a new thread if there's ever any questions. The Community's always here to help. Have a wonderful Friday!

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