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GEB_Andrew
May 1, 2024
Question

Customer Refunds

  • May 1, 2024
  • 1 reply
  • 0 views

I have a customer whose CC I keep on file. When I recently billed them for services performed, I charged their card, but they also paid in cash, which was deposited in our bank. So I refunded their credit card, which shows in their customer profile in QBO. However, refunding them for that didn't debit back their open balance. So now I have a $150 cash deposit that needs to be applied to this invoice (now that I refunded their card), but the invoice isn't showing as open. How can I fix this so I can properly apply this cash deposit?

1 reply

C
CamelleT
May 1, 2024

Let's work together in managing the cash deposit, Andrew.

 

The invoice may not appear as open because it was paid in full through the initial credit card charge before you issued the refund. You'll need to open the invoice, unlink the payment, and apply the $150 cash deposit. I'll provide the steps below:

 

If the payment is not yet deposited, here's how we can unlink the payment:

 

  1. Go to Customers &leads and choose Customers.
  2. Locate and select your customer's name. 
  3. Click View/Edit beside the particular invoice.
  4. In the upper right corner, click the payment link.
  5. Scroll down and tap Clear Payment to unlink the payment.

 

If the payment is already deposited or linked to a downloaded transaction on your bank feeds, we need to undo the deposit transaction. Refer to the steps below:

  1. Go to Transaction and choose Bank Transaction.
  2. Select the bank account where you deposited the funds.
  3. In the Categorized tab, locate the deposit transaction.
  4. Click Undo.
  5. Then, proceed with the prior steps above in unlinking the payment.

 

Once the invoice status is open, you can apply the $150 cash deposit to it. Here's how:

 

  1. Go to Sales and choose Invoices.
  2. Locate the invoice and select Receive payment beside it.
  3. In the Payment method dropdown, choose Cash. Then, in the Deposit To dropdown, click Undeposited Funds.
  4. Enter the payment amount ($150) and hit Save and close.

 

I'll be a post away if you require further assistance managing invoice payments, Andrew. Stay safe!

G
GEB_AndrewAuthor
May 1, 2024

I tried unlinking the payment, and QBO isn't allowing it. I'm getting a message that says:

 

"This transaction has been deposited. If you want to change or delete it, you must edit the deposit it appears on and remove it first."

 

I'm not sure what this instruction is really telling me though.

 

S
SheandL
May 1, 2024

We need to delete the deposit first before unlinking the payment, @GEB_Andrew. I'm here to help you on how.

 

The error message occurs when a payment is deleted before a deposit. To fix this, we should first remove the deposit before the payment. I'm here to guide you on how. 

 

  1. Head to the Gear icon.
  2. Select Chart of Account.
  3. Search for the bank where you've deposited the payment, then hover to the View Register.
  4. Find the deposit you've created, then click and select Delete.
  5. Hit Yes.

 

Please check this article for reference: Record and make bank deposits in QuickBooks Online.

 

Afterward, you can now remove and unlink the payment seamlessly. 

 

You can check this article for guidance in reviewing the downloaded transactions when you connect your bank in QBO: Categorize and match online bank transactions in QuickBooks Online.

 

I'll be sure to help you if you have further questions about unlinking your payment in QBO. Just hit the reply button.

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