How to match a net debit balance of an invoice payment and credit card refund in the bank feed under QBO?

Hey there, @Dixon FDS. 

It's great to see you back in the Community! Let's work together to get this problem handled. 

To clarify some additional details, can you provide us with screenshots of the issue? This will help us determine the best solution for your business. 

In the meantime, you can review this guide about matching transactions. 

I'll be waiting for your response! 

Hi Candice,

Please find the screen shots.

Please note that the actual net debit balance of $1042.60 including (1) customer's invoice payment of $751.40 and (2) credit card refund of $1,794.00 relating to a duplicate credit card payment.

Thanks for getting back to us and providing additional information, Dixon FDS.

Let me share details of how matching transactions works in QuickBooks Online (QBO).

Matching transactions depends on the data showing on your banking feeds. Since you're referring to a credit card payment and showing it as spent in the banking feeds, you can only match it to money-out transactions, such as Open Bills, Bill Payments, Checks, and other money-out transactions.

For more details on handling your bank transactions, I recommend checking these articles:

• Categorize online bank transactions in QuickBooks Online
•  Match online bank transactions in QuickBooks Online

For future reference, here's an article you can check for the best practices when reconciling your account: Learn the reconcile workflow in QuickBooks. It also provides information on what to do when encountering challenges during the reconciliation process.

Please let me know if you have any other questions or concerns about matching your transactions. I'm always here to assist you. Have a great day!

Hi Mirram,

Is there any feasible solution to solve this issue?  As a matter of fact, the credit card company summed up all the transactions within the day and just transferred a net balance daily to the bank.  We can't do anything about it.  

Are we able to manually amend the bank feed transactions in QBO to split the net debit balance of $1042.60 back to a debit balance of $1,794.00 (to link to refund receipt) and a credit balance of $751.40 (to match to customer invoice payment)?

Thanks.

I have another option how you can match a net debit balance of an invoice payment and refund, Dixon.

QuickBooks Online (QBO) suggests categories for your downloaded transactions based on how you, and other customers, categorized similar transactions. For now, splitting these transactions isn't possible since there are existing ones that need to be matched. You'll want to exclude the transactions instead. To do so follow the steps provided below:

1. Go to Transactions, then select Bank transactions.
2. Under the For Review tab, select the checkbox of the transactions to exclude.
3. Click Exclude.

Once done, the transaction moves to the Excluded tab of the Banking page. After that, you can now enter the transactions manually.

Furthermore, you may need to review our accounts in QuickBooks to make sure they match your bank and credit card statements. Go through this article for more details: Reconcile An Account In QuickBooks Online.

You can always comment below if you have any clarifications or concerns when matching transactions. Remember, we're always here to help you any time of the day.

Hi Maria,

Thanks for your reply.  Once I exclude the net debit balance of $1,042.60, how can I enter the 2 separate individual transactions (debit balance of $1,794.00 &  credit balance of $751.40)  manually in the bank feed.

Are there any points I need to pay attention when reconciling the bank account or other reporting?  Thank you. 

Thanks for getting back here in the thread, Dixon. I'll help you further with manually recording transactions inside QuickBooks Online (QBO). 

After you exclude the net debit balance, you can manually input the two separate transactions. In manually recording the transaction, ensure to enter the exact details. To begin with, open an account register. Let me show you how:

1. In Settings, select Chart of Accounts.
2. You can also choose Chart of Accounts from the Transactions tab in the MENU dropdown.
3. Find the account register you want to review.
4. Select View register from the Actions column.

Once done, add a transaction to the account register.

1. Select the Add journal entry, Add check, or Add deposit dropdown menu at the top of the list.
2. Select the type of transaction you want to add.
3. To complete the transaction, fill out the fields.
4. If done, click Save.

You may also want to edit your transactions in the account register. Visit this link for more details: Find, review, and edit transactions in account registers in QuickBooks Online. 

When reconciling your bank statement, ensure to record all transactions. Note that it's essential to base all transactions on your bank statement to avoid errors. Moreover, I'll leave this article as your guidance in reconciling your account transactions inside QBO: 

• Reconcile an account in QuickBooks Online
• Fix issues the first time you reconcile an account in QuickBooks Online

Comment below for more questions about recording your bank transactions inside QBO. I'm always ready to assist. Take care! 

Hi KayePe,

Thank  you for your reply. By the way, where can I find Add journal entry, Add check or Add deposit dropdown menu at the top of the list in the Bank Register?  

Should I select Add check for the payment of the credit card refund of $1,794.00?  I am not sure whether I should use "Refund Receipt" in order to clear the refundable balance.

Should I select Add deposit for the customer invoice payment of $751.40?

Not sure whether it would affect the subsequent bank reconciliation and AR settlement.  Please advise.  Thank you so much for your help. 

Cheers

Thanks for getting back to us, @Dixon FDS. Allow me to chime in and assist you further with adding a transaction manually to a bank register in QuickBooks Online (QBO).

Yes, you're right. Since the transaction is for the credit card payment, you'll need to select Add check. Then, choose Add deposit to deposit the customer invoice payment to that bank account. 

To enter a transaction directly into the bank register, click the Add expense dropdown under the DATE column, then select the type of transaction you want to add. I'll attach a screenshot below for your visual reference.

Furthermore, you can easily view and modify your transactions directly from the account register to ensure they are recorded accurately.

Let me know in the comments below whenever you have additional questions about entering transactions manually in the register. I'll be more than happy to assist you further. Keep safe, and have a wonderful rest of the day!

Hi JaeAnnC,

Thank you for your professional reply.  I have successfully created "Refund" transaction in the Bank Register for the refund of duplicate credit card payment by a customer.  I also created "Added Deposit" transaction in the Bank Register for the customer invoice payment.  The monthly end bank balance is now reconciled. Thank you so much.

Just one last question, how to transfer the Deposit to clear the respective customer invoice which is still shown outstanding in the AR?  

It's great to know that you're able to create a refund and deposit transaction, Dixon. Let's now record a received payment.

To clear the outstanding Accounts Receivable(AR), ensure that the affected AR and your invoice are having the same name of the customer. Right after, you can now link the deposit and the invoice by doing the Receive payment transaction.

Here's how: 

1. Click +New located at the top left.
2. Under the Customers column, click Receive payment.
3. Select your customer. It has to be the same customer that you've created the invoice with. 
4. Choose a Payment method. 
5. If you see the invoice that you created, tick the box beside it.
6. Enter the amount in the Payment column. 
7. Press Save and Close. 

To dig deeper regarding linking your bank deposit to an invoice, you may see this guide: Link a bank deposit to an invoice in QuickBooks Online.

Additionally, you may also want to learn more about Deposit payments into the Undeposited Funds account in QuickBooks Online so that you'll be able to know how to put payments into the Undeposited Funds account before you combine them into a deposit.

Let me know if you have further questions regarding on receiving the invoice payments in QuickBooks. We're always here to help you with this.