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Level 1

I have a bill. We paid it by credit card but the operator entered an incorrect amount. She then refunded the overpayment to the credit card. How do i reconcile all ?

So say the bill is £400 - we have a credit card payment of £450 and a refund of £50. I can reconcile the payment to the bill, but it leaves the refund unaccounted for. If I make a supplier credit i end up with double the credit on the supplier account.
5 REPLIES 5
QuickBooks Team

I have a bill. We paid it by credit card but the operator entered an incorrect amount. She then refunded the overpayment to the credit card. How do i reconcile all ?

Hi9 Zeus,

 

In the scenario above, you can raise the bill for £400 and mark this as paid for £450, leaving an unapplied payment of £50 on the supplier's account. After this, you can follow the steps below to show that this was refunded:

 

1) Click + New > Bank Deposit
2) Choose the correct bank account on the top left corner, choose the date when the money was received back into your account
3) Scroll down to 'Add funds to this deposit' - enter the supplier, for the account choose Creditors, enter the amount, choose no VAT
4) Go to the Supplier's page create a cheque (New transaction > cheque)
5) Tick the deposit against the unapplied payment to link the two, then save and close

6) Match the deposit against the transaction on your banking screen

 

Please remember to delete the supplier credit if you still have this on the suppliers account, as this is no longer needed. 

 

Thanks!

 

Level 1

I have a bill. We paid it by credit card but the operator entered an incorrect amount. She then refunded the overpayment to the credit card. How do i reconcile all ?

Thank you for your prompt reply. However this is on a credit card, and the system doesn't have an option to create a deposit for a credit card account.   

QuickBooks Team

I have a bill. We paid it by credit card but the operator entered an incorrect amount. She then refunded the overpayment to the credit card. How do i reconcile all ?

Thanks for getting back to me Zeus, that's my bad!

 

 

In this case, instead create a card credit (+ New > Credit card credit), on this, enter the supplier name in the payee box, select the credit card in the bank/credit account, enter the date you received the credit, in the category column enter the account or product you initially used on your bill, enter the amount and VAT, if relevant, and select save and close. You'll then beable to match this to the refund in the banking screen.

 

Thanks!

 

 

Level 1

I have a bill. We paid it by credit card but the operator entered an incorrect amount. She then refunded the overpayment to the credit card. How do i reconcile all ?

Thanks for your reply.  I've done this as you suggested and my credit card account reconciles perfectly.  However I still have a negative balance on the supplier account. (and indeed there is no corresponding entry on the Accounts Payable/Trade creditor control account.  

 

Somehow the double entry isn't working correctly so I must be inputting wrong, but I can't see how.  I either end up with an anomaly on the credit card account or the supplier account.

 

 

QuickBooks Team

I have a bill. We paid it by credit card but the operator entered an incorrect amount. She then refunded the overpayment to the credit card. How do i reconcile all ?

Thanks for getting back to this thread and following the steps provided above, @Zeus.

 

You can create a journal entry to offset the negative balance on your supplier's account. Here's how: 

 

  1. Click the + New icon and select Journal entry.
  2. Fill out the fields to create your journal entry.
  3. Select the offsetting account in the first line and enter the offsetting amount in the DEBITS column.
  4. Choose Accounts Payable in the second line and enter the same amount in the CREDITS column.
  5. Select Save and new or Save and close.

 

You can also reach out to your accountant for further advice with regards to accounts you're going to use in your journal entry. This will make sure your book is accurate once you close them. 

 

Let me know how else I can help you with QuickBooks by adding a comment below. I'm more than happy to lend a helping hand. Keep safe!