Question

Credit Card Refund

Forum|Forum|4 years ago
June 8, 2022
1 reply
5 views

Hi,

How should I post a credit card refund when the credit card sales/refunds are handled by WorldPay?

If I make £400 of sales and £100 of refunds in one day the End of Day totals from the Merchant machine will show £400Dr and £100Cr and a Total of £300.

In QBO, I enter the sales as Sales Receipts (Deposit to Outstanding Income) and I enter the refund as a Refund Receipt (Refund from Outstanding Income).

A few days later I receive a payment from WorldPay to my bank account for £300. I can match that against the Sales Receipts for the day (£400) but the Refund isn't available on the screen to match.

As a work around I used the Resolve option at the bottom of the match screen to create an Expenses of £100 and posted that to Outstanding Income. I included the Refund Transactions receipt number in the resolving expenses Description so that there is an indication that they should match. Doing this, the days transactions are all posted and the accounts balance. However, I have 2 unreconciled transactions in the Outstanding Income account and a bit of extra messing about.

[Actually, on further investigation, the above isn't a solution because the Expense transaction created to balance the Bank deposit is now appearing as a potential match on other bank transactions.!!!]

So, I'm going to enter my Credit Card Sales/Refunds as splits on the Bank deposit from WorldPay and will not be using QBO Sales Receipts/Refund Receipts.

This does seem like a fairly poor solution. Is there a better solution? Why are the Refund Receipts not available on the Match Transactions screen?

Thank you for your help.

QuickBooks Online

A

Ashleigh1

Level 14

Hello DK1992,

Welcome to the Community page,

If the amounts are being refunded to your credit card then you would use credit card credit option within the +new section. If you are refunding a customer for all or part of an invoice or sales receipt then you would use a refund receipt, this creates a spent amount that you should be able to match to the same amount going out of the banking page/ bank statement. In regards to your question

Why are the Refund Receipts not available on the Match Transactions screen? It should bring up a match for you, so something must be different if it is not bringing up one for you, so either the amount, account, customer or date it has left the bank is different therefore it will not bring up a match for you.

D

DK1992Author

Hi Ashleigh,

Thanks for looking at this. I am refunding a customer so did use a Refund Receipt, but the transaction didn't appear on the Match Transactions page.

The date of the Refund Receipt was the date of the refund. This was 3 days before the Bank transaction I was trying to match to and the same date as Sales Receipts which were available on the Match Transactions screen.

The Refund Receipt and Sales Receipts were all posted to Outstanding Income. The Sales Receipts were available but the Refund Receipt wasn't.

This does seem like a bug to me. Is this a known issue? Is there a recommended work around?

Thanks

Jen_D

Level 8

@DK1992 wrote:
Hi Ryan,
This seems to be working for me now. I need to create the deposit via +New, Bank Deposit and the Sales Receipts and Refunds are all available for me to match.
Hope this works for you.
Regards
James

This seems like a better way than was previously suggested. My concern is, if you create a refund receipt, does that not account for money out the bank in the accounts, and then creating a bank deposit would do the same? Or does the bank deposit not put money back into the bank? I'm worried about double accounting, or cancelling out a refunded amount.

Thanks for getting back to this thread, Ryan.

I'm joining this thread to help you further with recording the refund in QuickBooks. Yes, both entries will post duplicate records in the bank if they are created separately. I'll share the steps so you don'r post double amounts in your bank.

For this, you'll have to create the refund receipt and deposit it to the Undeposited Funds account. Here's how:

Go to the + New icon.
Choose Refund receipt, then select the Customer ▼ dropdown.
Pick the customer you want to refund.
Select the Refund From ▼ dropdown, then select the Undeposited Funds.
Add all products or services the customer returned in the Product/Service column.
Make sure to fill the Date, Qty, Rate, Amount, VAT, and other fields accordingly, then select Save and close.

Once done, you can deposit the refund to your bank and it should detect a match in the Banking page. When you're ready to deposit, just go to the + New icon then Bank deposit. Select the bank and the refund you recorded earlier.

I've prepared some resources in case you need some reference about the processes in this topic. Click the links below:

Let me know if you have other concerns with recording the refund. I can share some more insights and assistance anytime. All the best.

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