Question

Credit Card Refund

Forum|Forum|4 years ago
June 8, 2022
1 reply
2 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

A

Ashleigh1

Level 14

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.

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