Credit card refund through third party vendor with multiple payments

Welcome to the Community forum, walt2883. 

Thank you for providing such detailed information. It gives me a helpful overview of the issue. 

For your first question, you may need to process a refund. Let me show you how:

1. Go to the Customers menu at the top, and select Create Credit Memos/Refunds.
2. Select your customer from the Customer:Job drop-down.
3. Enter the items you're giving credit for, then select Save & Close.
4. In the Available Credit window, select Give a refund. You can choose cash to issue the refund.
5. From there, the check is filled out automatically. Then, click OK.
6. Link the check to the overpayment by going to the Customers menu and then select Receive Payments.
7. Select the customer from the Received from drop-down.
8. Click the Discounts and Credits icon.
9. In the Available Credits section, select the check you created and then Done.
10. Click Yes to confirm the transfer, then select Save & Close.

As for your other question, you can add the processing fee and withdrawal as another line item when creating a deposit. Here's how:

1. On your QuickBooks Desktop homepage, select the Record Deposits icon.
2. In the Make Deposits window, select the payments to Deposit and click OK.
3. In the second line item, enter the withdrawal as a negative amount.
4. In the third line item, enter the processing fee as a negative amount.
5. Enter the other necessary information.
6. Click Save & Close.

For more details about the process above, see the below articles: 

• Give your customer a credit or refund in QuickBooks Desktop for Windows
• Record and make bank deposits in QuickBooks Desktop

Please let me know if you need further assistance while recording your transactions. I'll be available to help you anytime. Have a great day!

Thank you for your response.  I have completed steps 1 - 5 on the processing of the refund.  With step 5 being complete, the system is not showing that the client still owes the original invoiced amount due to the refund.  When I go to step 6 and try to link the check to the overpayment there is not an option to click on the Discounts and Credit tab.    

I can show you a few screenshots for your reference, walt2883.

In the Receive Payment window, ensure that you selected the correct customer so you'll be able to click on the Discounts and Credits option. Here are screenshots from steps 4-8 on the instruction my colleague shared that will help you locate the options. 

After you have linked the credits, you can then proceed in creating a deposit. For more info on managing and viewing customer transactions, you can check out these articles: 

• Give your customer a credit or refund in QuickBooks Desktop for Windows
• Customize reports in QuickBooks Desktop

Let me know if you have other questions so I can walk you through from there. Take care and have a great day!

I may be trying to over complicate things or did not ask my questions correctly.  This is exactly what happened and I need to record in QB:: 

1. I applied a payment of $2602 that needs to be removed Bob's invoice. I received this payment from my credit card vendor. The credit card vendor refunded the money to the client. The client should still owe me the entire balance of the invoice again.

2. The credit card vendor should have a credit for the $2602 payment that they sent since they actually refunded the $2602 back to the client. 

2. The credit card vendor charged me a fee of $91.07 that I owe them.  Total due to the credit card vendor should now be $2602 + $91.07 = $2693.07 

3. Joe paid to the same credit card vendor $2255 for an outstanding invoice he had due to me.

4. I owe the credit card vendor the $2693.07 and the credit card vendor owes me $2255.  The credit card vendor withdraws $438.07 from my checking account. $2602 + $91.07 - $2255 = -$438.07.  

5. On 6/30 I recorded that I received the $2602 payment from client A and show it being deposited on 7/2 in my account.  On 7/6 I recorded that I received the payment of $2255 but this amount is still setting in my Record Deposit's because it had not hit the bank yet. On 7/8 the credit card vendor withdrew $438.07 from my account but this has not been entered into QB because I am at a loss on how to record all of this.  

I may not be asking my questions or explaining my situation correctly.  Let me try again:

1. 6/30 - Client A sent a payment through a credit card vendor in the amount of $2602 to pay his outstanding invoice. Credit card vendor sent notice of payment received.  I marked invoice as paid by credit card. 

2. 7/2 - Bank showed deposit of Client A's payment and I recorded the deposit of $2602 in QB.

3. 7/6 - Client A realizes that he was charged a $91.07 processing fee by the credit card vendor and asked for a refund so that he does not have to pay the extra fee.  Credit card company processes the a refund to the client and I now owe the credit card vendor the payment of $2602 + the processing fee of $91.07 = $2693.07. (Client A should now have an outstanding invoice of $2602 that needs to be paid again)

4. 7/6 - Client B sent a payment  through the same credit card vendor in the amount of $2255 to pay his outstanding invoice.  Credit card vendor sent notice of payment received.  I marked invoice as paid by credit card. I now have an undeposited payment for Client B sitting in my Deposits to be Record in the amount of $2255.   

5. 7/7  - Credit card vendor withdraws $438.07 from my checking account. This transaction is to collect Client A's payment back, charge me the processing fee, and give me credit for Client B's payment ($2602 + $91.07 - $2255 = -$438.07)

How do I record that the payment was removed from Client A's invoice and credit the credit card vendor in the amount of $2602.  Then I need to use the credit that the credit card vendor has to show Client B's invoice as being paid in full, add the processing fee and refund the credit card vendor the correct amount.

Thanks for coming back and providing us in-depth details of your concern, walt2883.

I appreciate you for perming the recommended solutions provided by my colleagues to get this sorted out. To record the transactions, we can create either a Bank Account type or Credit Card type of account to serve as the Credit Card Vendor. From there, we can enter the deposits and withdrawals of the transactions. To set up a credit card account, just follow the steps below:

1. From the Company menu, select Chart of Accounts.
2. Select Account or the plus + icon, then New.
3. Choose Credit Card, then select Continue.
4. On the Add New Account window, enter the credit card name. If you are setting up a sub-account, select the Subaccount.. of a checkbox, then select the parent account from the dropdown.
5. Tap Enter Opening Balance... then enter the account's balance and date.
6. Press Save & Close.

To learn more about this one, see the Set up, use, and pay credit card accounts article. To guide you on entering and recording the processing fee and refund the credit card vendor the correct amount, I'd suggest contacting our Customer Support Team. They'll pull up your account in a secure environment and help you woht this one. To ensure we address your concern, our representatives are available from 6:00 AM to 6:00 PM on weekdays and 6:00 AM - 3:00 PM on Saturdays, PST. See our support hours and types for more details about this one.

Visit our QuickBooks Help Articles page for more insight s about managing your business in your software.

You can always update us on the result after performing the steps or contacting our support in the comment below. I'd like to ensure this is resolved for you. You have a good one. 

Although none of the responses given helped resolve my situation, I would still like to say thanks to everyone that tried to help.  I just wanted to go ahead and reply with how I actually fixed my issues just in case it helps someone in the future.  

1. I went back to the 6/30 deposit and deleted it.  

2. I deleted the payment of $2602 that was made. This changed the clients invoice from showing as paid to unpaid again.

3. I created a deposit for 6/30 of $2602 to my refund liability account and made notes of what the deposit was for.  

4. I created a transaction in my bank register to the credit card vendor for the $438.07 they drafted out of my account.  The expense accounts show $347 to the refund liability account and $91.07 to credit card fees account.  This left my refund liability account with a balance of $2255 which was the other payment that was made.  

5. I made a journal entry to debited the refund liability account by $2255 and credit the accounts receivables balancing account by $2255.  This took my refund liability account back to a $0 balance.

6. I received the payment of $2255 for the customer that paid it using the accounts receivable balancing account.  This client is now showing paid in full.