Can I match a deposit in the bank feed with a higher payment and a refund?

billing87 · ‎September 15, 2021

I have a customer that paid their invoice with a credit card and another that we refunded to their credit card. The credit card processor will deposit the net amount and I'm wondering how to record all this and match properly. For illustration, Customer A paid 4,000 and Customer B got refunded 500, so the net amount of the deposit that we received in the bank is 3,500 and I need to match that deposit with the 4,000 payment and a 500 refund. I tried finding the 4,000 payment in the list of transactions to match but it doesn't appear there as it is higher than the deposit (3,500) that I'm trying to match. Entered the refund manually and it also does not appear in the list of transactions to match. Any ideas on how to resolve this? Maybe there is a workaround

DivinaMercy_N · ‎September 15, 2021

Thanks for being detailed about your concern, @billing87. I'm here to ensure you can match the deposit with a payment and a refund in QuickBooks.

Before we begin, let's first ensure that the payment ($4,000) of Customer A is deposited to the Undeposited Funds account. Here's how:

Sign in to your QuickBooks Online (QBO) account and select the +New button.
Choose Receive Payment.
From the Deposit to field, select Undeposited Funds.
Click Customer A on the Customer drop-down and check the invoice ($4,000) in the Outstanding Transactions section.
Then, click Save and close.

Next, create a bank deposit and add the refund for Customer B. Let me guide you how:

Go to the +New option and select Bank Deposit.
Choose the account where you want to deposit the payment in the Account drop-down.
Under the Select the payments included in this deposit section, mark the payment ($4,000) from Customer A.
Next, add the refund for Customer B in the Add funds to this deposit field.
Choose Customer B, in the Received From column.
Then, select income account or Accounts Receivable in the Account field.
From the Amount column, enter negative 500 (-$500).

After that, the total amount will be $3,500. Once done, you can now match the transactions on the Banking page.

In QBO, it's easy to get a list of your customers’ outstanding balances to determine how much is still due and how long they’re past due are. You simply need to run the accounts receivable aging report to have this data.

If you need additional assistance matching the deposit with a payment and a refund, feel free to get back here. I want to ensure your success. Have a good one.

View solution in original post

DivinaMercy_N · ‎September 15, 2021

Thanks for being detailed about your concern, @billing87. I'm here to ensure you can match the deposit with a payment and a refund in QuickBooks.

Before we begin, let's first ensure that the payment ($4,000) of Customer A is deposited to the Undeposited Funds account. Here's how:

Sign in to your QuickBooks Online (QBO) account and select the +New button.
Choose Receive Payment.
From the Deposit to field, select Undeposited Funds.
Click Customer A on the Customer drop-down and check the invoice ($4,000) in the Outstanding Transactions section.
Then, click Save and close.

Next, create a bank deposit and add the refund for Customer B. Let me guide you how:

Go to the +New option and select Bank Deposit.
Choose the account where you want to deposit the payment in the Account drop-down.
Under the Select the payments included in this deposit section, mark the payment ($4,000) from Customer A.
Next, add the refund for Customer B in the Add funds to this deposit field.
Choose Customer B, in the Received From column.
Then, select income account or Accounts Receivable in the Account field.
From the Amount column, enter negative 500 (-$500).

After that, the total amount will be $3,500. Once done, you can now match the transactions on the Banking page.

In QBO, it's easy to get a list of your customers’ outstanding balances to determine how much is still due and how long they’re past due are. You simply need to run the accounts receivable aging report to have this data.

If you need additional assistance matching the deposit with a payment and a refund, feel free to get back here. I want to ensure your success. Have a good one.

billing87 · ‎September 15, 2021

It worked! Thank you so much for your help! :-)

allrryan · ‎December 14, 2023

I did this and it worked to match the bank transaction to the depost, but in my accounts receivable detail I show the credit memo as unapplied and the Deposit as overdue. How do I apply the credit memo to that deposit in the Accounts Receivable/Customer ledger?

AbegailS_ · ‎December 14, 2023

Hi there, @allrryan.

Thank you for contacting us regarding the issue you're experiencing with applying the credit memo to the deposit in your accounts receivable.

To assist you further, please provide a screenshot of the affected account where the deposit is showing as overdue and the credit memo as unapplied.

Once we have a visual of the specific details, we'll be better equipped to help you apply the credit memo to the deposit in the Accounts Receivable/Customer ledger.

Your cooperation in providing this additional information is greatly appreciated, and we are committed to resolving this matter for you as efficiently as possible.

Please feel free to send the screenshot at your earliest convenience, and we'll promptly assist you with the next steps.

rbcnew · ‎September 24, 2024

Is there an update to this? In my workflow it may not be practical or convenient to get related refunds and deposits into a single manual deposit transaction, since refunds are not deposits to begin with.

Anyway, my request to Intuit would be to expand the Matching function so that we could pull up any and all transactions to match the correct ones without further manipulation.

Thanks

Heide DC · ‎September 24, 2024

We highly value your feedback regarding the current matching functionality in QuickBooks Online (QBO), rbcnew.

Currently, QBO still requires manual processing for refunds and deposits. However, you can directly share your ideas with our product developers to request improvements to the matching function. This will allow our development team to gather ideas for future updates.

Here’s how you can do that:

Select the Gear icon, then choose Feedback.
Enter your request or product suggestions.
Select Next to submit.

Submitting your feedback will allow our development to gather some ideas they can include for future updates.

You can also visit this helpful article on matching your transactions after connecting your bank in QuickBooks: Categorize online bank transactions.

Additionally, I've added an article to learn about matching your QuickBooks transactions with your actual bank statement: Reconcile workflow in QuickBooks.

Please know that the Community space is always open if you have other questions about matching transactions in QuickBooks. We'll be sure to help you as soon as possible.

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Can I match a deposit in the bank feed with a higher payment and a refund?