I'm hoping someone can confirm the correct approach to issuing a customer refund in QB Desktop--we don't use QB Payment. Here's the background:Same customer purchased clothing on two different sales transactions using a credit card on the same day.1st sale was completely refunded and the 2nd was partially refunded.There were six sales that day (2 to the customer in question and 4 additional customers) and the bank recorded the six transactions as a single deposit; I entered them as individual transactions into QB via Sales Receipts using undeposited funds so that I could combine them later for the depositThe deposit on the bank checking statement is net of the total sales less the full and the partial refund amountsI have not recorded the deposit in QB yetI realize I need to go thru the "Refund" function but I'd like to get it right the first time and also make sure that the refund amounts get captured and flow through QB properly so that the undeposited funds and the refunds are applied correctly for the bank checking account deposit. Thanks!jmack6

Question

Customer Refunds

Forum|Forum|5 years ago
May 1, 2021
10 replies
37 views

I'm hoping someone can confirm the correct approach to issuing a customer refund in QB Desktop--we don't use QB Payment. Here's the background:

Same customer purchased clothing on two different sales transactions using a credit card on the same day.
1st sale was completely refunded and the 2nd was partially refunded.
There were six sales that day (2 to the customer in question and 4 additional customers) and the bank recorded the six transactions as a single deposit; I entered them as individual transactions into QB via Sales Receipts using undeposited funds so that I could combine them later for the deposit
The deposit on the bank checking statement is net of the total sales less the full and the partial refund amounts
I have not recorded the deposit in QB yet

I realize I need to go thru the "Refund" function but I'd like to get it right the first time and also make sure that the refund amounts get captured and flow through QB properly so that the undeposited funds and the refunds are applied correctly for the bank checking account deposit.

Thanks!

jmack6

QuickBooks Desktop

K

KnowMoreTax1

There are generally many ways to accomplish an accounting task that are all acceptable or "right." The point of your accounts is to report your business activity easily and without working too hard to get at the details. The credit given could be taken directly against sales as a negative value but I prefer a "contra account" where a dr balance exists instead of the usual cr balance for sales. In the Credit Memo/Refunds a item is setup that takes amounts to the contra account and makes the proper entry to reflect actual sales.

J

jmack6Author

Thanks for the reply. As I'm not an accountant it sounds like you're suggesting to definitely use the QB refund functionality which I was assuming makes the most sense. Do you have an idea if the refund functionality will flow through as an "undeposited funds" transaction for the two refunds so that I can combine it into the deposit for my checking account? I currently have 6 sales transactions that I entered into QB Sales Receipts categorized as "undeposited funds" because I know the bank consolidated them all into a single deposit. When i go to the Make Deposit QB functionality which will allow me to combine those six transactions, will the refunds also show up so that I can include them as well? If QB doesn't support this I don't know how I get the 6 sales transactions and the 2 refund transactions to consolidate into the matching $ deposit the bank recorded.

Thanks.

jmack6

J

jmack6Author

So I went ahead and used the QB Refund functionality and as feared, there was never an option to categorize the refund as an "undeposited fund" so the refund was posted to the checking account register directly. I never had an option to consolidate it with the other sales transactions so that I could record an accurate QB net deposit that would match with the bank deposit. So now I have a overstated checking deposit and a refund that is a line item in my checking account register but is not a real life checking transaction.

I then tried entering a negative Sales Receipt for the refunds but QB doesn't allow that. So I have created the refund but it doesn't show up as an undeposited fund item that I can select to get the accurate bank deposit. What can I do to get an accurate undeposited funds deposit for the checking account? If this isn't possible then can someone advise on what the proper accounting transactions should look like as both the deposit and the refund are going to be mis-stated?

Any suggestions? Thanks.

jmack6

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