Credit Card Refund

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. 

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

Hello DK1992, can you try clearing your cache and cookies, to all time, close the browser down reload it and try again if all the info is correct it should bring up the match for you. 

Was there ever a solution to this? I'm running into the same problem.

Things I've tried:

- Refund Receipt (this is what you should be able to do as that's what you're doing, refunding a sales receipt).

- I've tried rather than refund receipt creating a credit note. Then add an expense against the customer as a debtor. After doing this the expense appears on the Match Transactions list. However if you check the box it adds as if it is taking a payment, not refunding. So in my instance, it's a refund for £102 that makes up part of a payment from Worldpay. When I add in the £102 expense in the match list, rather than reducing the difference from £102 to £0, it becomes £204. 

- If I then create a payment received the way you'd normally do when clearing a refund the transaction then disappears from the match list and back to square one. 

There's got to be a solution to this. It's impossible to reconcile without. 

Hello RyanMalone, thanks for commenting on this thread, so a refund receipt should match on the banking screening. All you should need is a refund receipt, however if it’s a single receipt, and you are getting on transaction showing up that covers multiple sales and refunds then it may not work, in that case the sales receipts and refund receipts should be posted to undeposited funds and you can create a deposit containing the appropriate amounts from there. 

Is there documentation on how to do this? 

Payments and refunds being coupled together in one transaction is standard practice with any payment provider/card machine. 

Hi Ashleigh,

I was trying to post the (multiple) Sales Receipts and Refunds to "Outstanding Income" and then expected to be able to match them to the (single) transaction from Worldpay through the Match function in Banking.

However, I have just tried it again but this time I manually created the bank deposit. The Sales Receipts and Refunds were available for me to include in the deposit and the deposit then automatically matched to the deposit from Worldpay in the bank account.  Hurrah!! Problem solved.

Thank you.

James

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

---

@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. 

Not sure what I'm doing wrong. Tried New > Bank Deposit. Selected the customer, entered the amount refunded against the account Sales. It then appeared in the transaction match but as a positive value so makes the difference larger not 0...

Deleted that deposit, tried entering the value as a minus amount, but then nothing appeared in matching transactions. 

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:

1. Go to the + New icon.
2. Choose Refund receipt, then select the Customer ▼ dropdown.
3. Pick the customer you want to refund.
4. Select the Refund From ▼ dropdown, then select the Undeposited  Funds.
   
5. Add all products or services the customer returned in the Product/Service column.
6. 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:

• Void or refund customer payments in QuickBooks Online
• Record a customer refund or supplier refund in QuickBooks Online
• Categorise and match online bank transactions in QuickBooks Online

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

Tried that but it's still not allowing me to match up the total transaction for that day. Picture attached shows the transactions from the day I'm trying to match. Seems pretty impossible to pull in a negative value but I need -£102 refund to be able to make up the correct amount.

Not sure if I should be using the resolve/difference toggle and entering the payment to the customer in this way (but I would imagine that would require entering just a credit note to begin with - doesn't seem like it would be the right way to do things).

I've got your back in handling customer refunds and Resolve Difference in QuickBooks Online (QBO),RyanMalone.

In QuickBooks Online, the best way to fix a payment differences when matching transactions is to use the Resolve Difference button. This helps match your transactions by resolving its difference until it will be equal zero. 

Also, there are several ways to record a refund based on various scenarios. You can open this article to view steps on how to perform the process to ensure your books are accurate : Record a customer refund or supplier refund in QuickBooks Online

Moreover, if you need help reconciling your bank after processing and matching those transactions? You can check this article for complete instructions: Reconcile an account in QuickBooks Online

Lastly, I've got you this helpful article for the steps that'll help review your transactions after uploading them: Categorise and match online bank transactions in QuickBooks Online

I'll be here if you have any additional questions in recording your customer refund or if you need anything else. Just let me know by leaving a reply below. Take care and have a great day!

Hi Ryan,

Your screen shot shows you using the Match Transaction screen. This is where I went wrong originally. The sequence that works for me is...

- Create the Sales Receipts posting to "Outstanding Income"

- Create Refund receipts posting to "Outstanding Income"

[so you haven't posted anything to your bank account]

- Create a Bank Deposit to your bank account using the "Select Payments included in this deposit" part of the screen to select the Sales Receipts and Refunds that are part of the settlement from Worldpay.

- Your bank deposit will match with the actual deposit in your bank account.

Good luck.

James 

I have undeposited funds, is this the same as outstanding income?

My issue (I don't think) is that I'll not have recorded the money in/out in the bank. It's that the match screen that I screenshotted isn't able to be balanced. So for this example, the 3 payments coming in cannot be reconciled because I still won't be able to factor in that the difference is made up by a refund (unless I just exclude - but again that just seems like a massive software oversight). 

Hello RyanMalone, So undeposited funds is a holding/asset account in Quickbooks.

this is still a real problem - i dont understand why as it must happen countless times for anyone with a card machine as these machines will only show a total of the days payments and refunds

Solution is for all electronic payments and refunds to be recorded as unallocated funds, then to add a bank receipt which should then list all the transactions to match what is on any payout or refund. Could be a mix of payments and refunds. 

If it's only payments then you should be able to match from within the banking section by going to find match, set the datesm ranges the payments were made then it comes up with suggestions to couple together to match.

Not sure how to add a bank receipt showing this as the bank entry will just show the total for the day.

In the end I did a resolve for the refund and just attributed it to the customer as an expense.

I don't know why QB can't just have refunds in the Find a Match section to avoid all this.