Zettle (PayPal) integration

Thanks for joining us here, Peter.

It can be that the Zettle creates the refund in QBO through the Credit Note to reverse the sale and VAT in QuickBooks, but it doesn’t create the actual refund “cash movement” that reduces your Card or Cash Control Accounts. That’s why Debtors shows a negative balance and your control accounts don’t reduce by the amount of the refund.

The fix is to record the money out of the proper control account and link it to the Credit Note so Debtors is cleared. The way to do this in QBO is:

1. Select + New or + Create. and select Expense.
2. In the Payee field, select or enter the desired customer.
3. In the Payment account field, select the bank the money is being refunded from.
4. In the Category field, select the Debtors account (Accounts receivable).
5. In the Amount field, enter the amount of the refund.
6. In the VAT field, select No VAT (not inclusive/exclusive of tax).
7. Select Save.
8. Next, select + New and select Receive payment.
9. Add the Customer and select the Payment method and Deposit to.
10. Balance should be 0 as they will cancel each other out.
11. Select Save and close.

You can a run journal report or customer balance detail report to check if everything is back into balance.

Please click on the article for more information regarding this matter: Record a customer refund in QuickBooks Online

Regarding your Zettle settings, I recommend reviewing them to identify any configurable options that might resolve this matter. Alternatively, you may consider reaching out to the third-party app's support team for further assistance.

If you have any additional questions, please don’t hesitate to reach out. We're always here to assist you.