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jennsmith457
Level 1

Credit Card Refund is sitting in undeposited funds and not matching with the bank transaction. How do i fix this?

 
7 Comments 7
LieraMarie_A
QuickBooks Team

Credit Card Refund is sitting in undeposited funds and not matching with the bank transaction. How do i fix this?

You'll need to deposit the refund to the correct bank before you can match it with the downloaded transaction, @jennsmith457.

 

Let me walk you through in transferring your funds from the Undeposited Funds account to your desired bank account.

 

  1. Click on the +New button.
  2. Select Bank Deposit.
  3. From the Account drop-down, select the bank account.
  4. Mark the transactions you want to transfer from the Select the payments included in this deposit section. 
  5. Review the transaction details.
  6. Select Save and Close.

 

Then, match them with the downloaded transactions. 

 

Additionally, you can reconcile your account to make sure they match your real-life bank statements. Just go to the Accounting menu and select Reconcile.

 

Don't hesitate to comment below if you need further assistance. I'm always around to help. Have a good one.

jennsmith457
Level 1

Credit Card Refund is sitting in undeposited funds and not matching with the bank transaction. How do i fix this?

I'm thinking i didn't word my question correctly.  Because if i make a deposit that puts the money back into my bank account which is not what i want to do.  This was a refund where i refunded my customer for a double charge that i processed in error.  I created the refund and processed the CC at time of issuing the refund.  Now what has happened is the refund is sitting in undeposited funds as a negative number, when it should be pulling from my bank account, but it won't let me tell it where to pull that $$ from.

jamespaul
QuickBooks Team

Credit Card Refund is sitting in undeposited funds and not matching with the bank transaction. How do i fix this?

Hello, jennsmith457.

 

Thanks for getting back here. I appreciate the adding more details and clarification on the issue. I'll take it from here and help you handle the refund amount from the Undeposited Funds account. 

 

It looks like both the payment and the refund are in the Bank Deposit screen since you created them both at the time of issuing the refund. To clarify, it's true that the refund will reflect on your bank's register. However, it won't actually put the money back into it. Rather, the total deposit will be reduced by the negative amount (which is the refund).

 

You can find the final amount under the Select the payments included in this deposit table. Here are the screenshots on what will happen if you process the bank deposit: 

 

BankDeposit1.PNG BankDeposit2.PNG

 

That said, you can go ahead and process the bank deposit. 

 

Next, let's deal with the downloaded bank transaction. Are the amounts (both the double charge and the refund) downloaded in a lump sum amount? If so, you'll just want to match the entire bank transaction with the deposit record. Here's how: 

 

  1. Go to the Banking page. 
  2. Under the For review tab, find and select the transaction. 
  3. Tick the Find match radio button.
  4. Find and check the deposit, then click Save

 

BankDeposit3.PNG

 

QuickBooks will also automatically detect a potential match. If it's correct, simply click the Match link under ACTION.

 

If the bank transactions were downloaded separately (the double charge and refund), you'll want to manually clear the deposit transaction then exclude the downloads. 

 

To manually clear the transaction: 

 

  1. Go to your Chart of Accounts.
  2. Find the bank and open its register by clicking on View register
  3. Locate the deposit transaction and select it.
  4. Under the "check" column, click the box until "C" appears (this indicates that the transaction was cleared).
  5. Click Save

 

Bankdeposit0.PNG

 

 

To exclude the downloaded transactions: 

 

  1. Go back to the Banking page.
  2. Find and check the downloaded bank transactions.
  3. Click Exclude

 

BankDeposit5.PNG

 

You can also delete them completely from the Banking page. Just go to the Excluded tab, click the transactions again then hit Delete

 

This is what will happen when you're ready to reconcile the bank statement: 

 

BankDeposit6.PNG

 

If you need help with other tasks, you can browse for topics and articles here. The page includes topics like reconciliation, reporting, and helping you manage your customers and sales. 

 

I'm more than willing to help you again with other concerns regarding QuickBooks Online. Leave a reply here and I'll get back to you. Have a nice day ahead.

LBarrettG
Level 1

Credit Card Refund is sitting in undeposited funds and not matching with the bank transaction. How do i fix this?

I am having the same problem, but none of the solutions that have been suggested work. We use QBO and process credit card transactions through QuickBooks Payments. When we discovered that a customer's credit card had been charged twice, we issued a refund back onto the customer's credit card. Intuit then withdrew the money from our bank account. In the Banking tab, a transaction was downloaded from the bank for the amount of the refund. However, when I review the transaction and try to find a match, it does not see the Refund Receipt as a match. The refund amount from the Refund Receipt is sitting in Undeposited Funds. If I go to Bank Deposit, under QuickBooks Payments is says "These payments will be automatically added to a Deposit transaction when they settle." This refund was not automatically added, and I can't add a negative deposit. I need to record the transaction in the bank register, and match it to the Refund Receipt so that the Undeposited Funds account is credited. Does anyone have a solution that actually works??

Catherine_B
QuickBooks Team

Credit Card Refund is sitting in undeposited funds and not matching with the bank transaction. How do i fix this?

Hello there, LBarrettG.

 

If the bank transaction with the refund is a deposit. You'll want to create a Bank Deposit. Then, select the refund receipt and include other payments that compose the bank transaction and match it on the Banking page. If the bank transaction is a negative value because of the refund, you can change the refund's bank account to the actual bank.

 

Feel free to use this link on how to manage your bank downloaded transactions: Categorize and match online bank transactions in QuickBooks Online.

 

Keep me posted if there's anything else that you need help with. Take care and have a great day!

 

crystalgntx
Level 1

Credit Card Refund is sitting in undeposited funds and not matching with the bank transaction. How do i fix this?

I have the same issue. The only solution I have found for this was to create a journal entry debiting the Undeposited Funds account and crediting the checking account from which the refund was pulled from. This allowed me to account for funds pulled for the refund and reconcile the transaction at month end.

RenegadeBK
Level 1

Credit Card Refund is sitting in undeposited funds and not matching with the bank transaction. How do i fix this?

As stated - "If the bank transaction is a negative value because of the refund, you can change the refund's bank account to the actual bank."

 

You cannot change the refund's bank account to the actual bank when you run the refund through credit card processing.

 

I followed the method someone else mentioned using a journal transactions to debit Undeposited funds and credit the bank account to match the banking transaction.

 

Then I created a new bank deposit to clear the Intuit negative deposits and the journal transactions.

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