How do I enter a payment followed by a credit?

Andelec · ‎May 07, 2022

I was charged for insurance that I had cancelled so it was then credited 5 days later

paul72 · ‎May 09, 2022

I think the question relates to payment/refund to/from a supplier rather than a customer.

If the charge/refund exactly cancel each other & they're in the same month/quarter for accounting & on the same bank statement (for reconciling), I'd be tempted to ignore & enter neither into QBO.

If you'd prefer to keep everything ship-shape then enter the original charge/payment as an expense or bill in the usual way.

You don't mention whether this was from a credit card or from bank account.

If CC then QBO gives you an option for Credit Card Credit - use that to record the refund.

If from bank, then use Add Bank Deposit to record the refund.

In both cases, use the same Category for the refund as you used for the expense (to ensure the two cancel in your accounts).

If you have entered the expense as a Bill (followed by Bill Payment) there is another step - you will need to add a Supplier Credit into QBO as the credit note. Use Bank Deposit again to record the refund.

Unfortunately, there is no simple Receive Refund button to receive payment against the credit so this deposit will show as an open balance on the supplier's account in QBO - you need to use Bill Payment to zero the credit note against the deposit.

Hope this helps.

View solution in original post

LeizylM · ‎May 07, 2022

Hi there, Andelec.

I can show you how to enter the payment in QuickBooks Online.

Here's how:

Click the + New button.
Choose Receive Payment.
From the Customer dropdown, select the name of the customer or insurance company.
From the Payment method dropdown, select the payment method.
From the Deposit to dropdown, select the account you put the payment into.
Fill in the other necessary field.
Hit Save and close.

Then, I suggest writing a check to Account Receivable for the refund or credit. Please follow the steps below.

Select + New.
Choose Check.
Choose the Payee from the drop-down ▼.
From the Bank account drop-down ▼, select the account the check withdraws money from.
Finish the check fields you need.
Select the Print or Preview option if you want to open the check queue to print now. Or select the Print later checkbox if you want to print the check later.
Hit Save and close to close the check window.

Also, to get a list of all payments and invoices for each of your customers, you may pull up the Invoices and Received Payments Report. Then, customize it so it will only show the info you need.

Let me know if there’s anything else you need help with in managing your accounts in QBO. I’ll be around to assist you. Keep safe!

paul72 · ‎May 09, 2022

Hi @LeizylM

I think the question relates to payment/refund to/from a supplier rather than a customer.

Hi @Andelec