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A
ASBGS
June 14, 2022
Question

Customer's balance still show negative, after issuing a refund to the customer credit card.

  • June 14, 2022
  • 2 replies
  • 0 views

I refunded an invoice in the amount of $2,500 directly from the invoice page itself by hitting "more" and then "refund". This created a refund receipt and notified me that the amount will be refunded to the customer's credit card. However, in the customer's transaction list, I see the invoice, payment, and refund entry, leaving the total showing as negative $2,500 in the amount the refund was for. How do I resolve this negative amount in the customer's transaction list page? 

 

I can not issue a refund check because the refund was done through the customer's credit card. The refund took place 30 minutes after the customer's card was run. 

 

Please advise. 

    2 replies

    A
    ASBGSAuthor
    June 14, 2022

    To elaborate- the part that is showing as negative is at the very bottom under "total". The customer's "open" and "overdue" entries at the top are zero. 

    J
    Just_me
    June 14, 2022

    Not sure if this helps, or is the issue, but  Once the refund receipt is completed, you have to match it with the refund receipt you’ve processed in Quickbooks.

    1. On the left panel, click on Banking.
    2. In the For Review tab, locate the refund.
    3. Select the transaction, click on Find Match.
    4. In the Match transactions page, choose the refund receipt.
    5. Click on Save.

    You may find this article handy in the future: How to Void or Refund a Credit Card Payment?

    D
    DebSheenD
    June 14, 2022

    Hello there, ASBGS.

     

    I appreciate Just_me providing some steps to get this fix. Allow me to chime in and share information on how to refund a credit card payment from a customer in QuickBooks Online (QBO).

     

    Instead of creating a refund receipt, we'll need to create a written check affecting the Accounts Receivable (A/R)and link it to the credit card payment. This will offset the negative balance. Here's how to delete the receipt.
     

    1. Go to Accounting and choose the Chart of Accounts tab.
    2. Locate the account and click on the View register link under Action.
    3. Hit on the refund transaction and choose Edit.
    4. Tap More at the bottom.
    5. Hit Delete.
    6. Press Yes to confirm.
       

    Once done, let's create a check to the bank affecting the (A/R) of the customer with the positive amount of $2,500. Here's how:
     

    1. Tap the + New Plus icon.
    2. Click Check.
    3. Tap the Payee from the drop-down.
    4. From the Bank account drop-down, select the account the check withdraws money from.
    5. In the Category column, choose the A/R account.
    6. Enter the positive amount of $2,500. in the Amount column.
    7. Hit Save and close to close the check window.

     

    Moreover, with refunds or return transactions, you may incur a fee depending on your pricing plan and transaction type. For further details, check out this article: Understand fees for refunds or void transactions.

     

    Fill me in should you need further assistance with this refund process. The Community team will always here to help. Have a great day ahead!

    S
    sdfelsh
    June 23, 2022

    matching transactions from the bank feed will not fix it (matching from  a bank feed just keeps the transaction from being double posted).  If you look in the transaction journal for the refund receipt, you will see that it credits the undeposited funds account and debits an income account. It shows up on the customers account but it is not actually posted to Accounts Receivable hence there is nothing to apply to the customers credit balance.  I do not understand why they don't give you the option to post to A/R instead of an income account but that is the case.  The simplest fix is to:

     

    1) create another Customer invoice (I use the same invoice # as the refund receipt with an appendage to distinguish yet connect the entries.) and use the same product/service as the refund receipt.  The debit on the refund receipt and the credit on the invoice will cancel each other out so there will be no affect on income (which there shouldn't be with an overpayment) but allows for a debit to A/R

     

    2) If in same month, just re-open the original payment and apply the overpayment to the invoice and you're done!  (This is what I did in the sample copy & pasted below.)

     

    3) If not in same month, "receive payment" for $0 on the new invoice you just created and apply the overpayment 

     

    It's a pain but the simplest work around I have found.  I tried calling support to see if there was any other work around but they knew less than I did.

     

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    DATE              TYPE      NO.     MEMO                                                  BALANCE  TOTAL  STATUS  ACTION
    06/23/2022Invoice15540apply refund receipt to account o/p$0.00$324.33
    Paid
    Print
    06/23/2022Refund15540refund overpayment from Invoice #15539 $0.00-$324.33
    Paid
    Send
    06/17/2022PaymentMQ9 Invoice # 15539 w/ refund on #15540$0.00-$2,781.75
    Closed
    		 
    06/17/2022Invoice15539Rental Fee for  XXXXXXXXXXXXXXXXX$0.00$2,457.42
    Paid
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