cancel
Showing results for 
Search instead for 
Did you mean: 
Level 2

How do I record a PayPal chargeback

A client initiated and won a PayPal chargeback over the weekend (I provide digital services so there's nothing I can do).  My question is, how do I record this in Quickbooks Online?

 

Do I delete the original payment and just leave the invoice marked as overdue with a note saying that a chargeback occurred?

Do I initiate a credit note to the original invoice and then put the client name in the expenses?

 

I also have a chargeback charge from PayPal so I assume that is just recorded as a banking expense?

 

Really confused.

Solved
Best answer 12-10-2019

Accepted Solutions
Highlighted
QuickBooks Team

How do I record a PayPal chargeback

Hello Motheroffire

 

 

In the case of the chargeback it would be a case of treating it in QuickBooks as if it is a credit note and a refund .In real life terms customer has been given the money back(though not under your control)and that amount is no longer income to the business.

 

It will be a case of

1.doing a credit note

2.doing an expense>selecting the customer as payee>in the category details selecting debtors>filling in the rest,date bank etc.

3.Then if you go to receive payment in the + symbol you should see the credit note and the expense to debtors and be able to tick them off.This will close the credit note and mean you can match the transaction in the bank account when it comes through.

 

Yes it would be a case of recording the charge as a bank expense with Paypal.

 

I appreciate that there are a few steps to this so any questions please let us know

View solution in original post

2 REPLIES 2
Highlighted
QuickBooks Team

How do I record a PayPal chargeback

Hello Motheroffire

 

 

In the case of the chargeback it would be a case of treating it in QuickBooks as if it is a credit note and a refund .In real life terms customer has been given the money back(though not under your control)and that amount is no longer income to the business.

 

It will be a case of

1.doing a credit note

2.doing an expense>selecting the customer as payee>in the category details selecting debtors>filling in the rest,date bank etc.

3.Then if you go to receive payment in the + symbol you should see the credit note and the expense to debtors and be able to tick them off.This will close the credit note and mean you can match the transaction in the bank account when it comes through.

 

Yes it would be a case of recording the charge as a bank expense with Paypal.

 

I appreciate that there are a few steps to this so any questions please let us know

View solution in original post

Highlighted
Level 2

How do I record a PayPal chargeback

That was super helpful; thanks so much!