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jenuneekor
Level 4

How to Match Banking Transactions with Invoices and Refund Receipts

Good morning,

 

I see SO MANY questions about this in the QB community, but not one answer that seems to make sense to me so I'm hoping somebody could help.

 

We use Shopify for ecommerce and integrate with QB, so it generates invoices in QB from our Shopify orders. Then, each day, we get our payout from Shopify. I go into my banking and match the payout to the invoices.

 

The issue here is that our payout today includes both invoiced sales, a refund (created a refund receipt in QB), and Shopify fees. How do I match this payout from Shopify with the invoices and refund receipt?

 

Thank you - I would so appreciate a response with all of the steps because I have to imagine most merchants are dealing with this!

Solved
Best answer December 15, 2020

Best Answers
MarsStephanieL
QuickBooks Team

How to Match Banking Transactions with Invoices and Refund Receipts

Hi there, @jenuneekor.

 

I'd be glad to share some insights about matching your invoice, refund, and bank transactions in QuickBooks Online.

 

The refund process and the sales recorded will be recorded separately when matching. If the Invoice has been paid, you'll have to deposit it to the Undeposited Funds. Once done, you'll see a positive amount in the bank feed that is detected since it is an Income.

 

I'll show you how to record the transactions separately. 

 

Recording a sale using an Invoice:

 

  1. Create an Invoice.
  2. Receive the payment and put it to the Undeposited Funds.
  3. Deposit it to the Bank. Note: FollowStep 2 in the article.
  4. Match it in the Banking page.

 

To record a Refund transaction:

 

  1. Create a Refund transaction. Indicate the product, amount, sales tax, and other charges. Then, enter the Bank account you've used to refund your customer. You can check this sample screenshot:

  2. Match it in the Banking page. I've added a screenshot for your reference:

 

When matching a refund transaction, you'll see a negative amount in the bank feeds since the money is withdrawn from your funds. This is why you're unable to match the invoice and the refund into one bank transaction. If the refund has been already sent to your customer, you'll have to wait for the bank feeds to update so that you can match it.

 

I've added an article for your future reference when you're ready to assess your business income and expenses through QuickBooks Online: Reconcile an account in QuickBooks Online. This also includes how you can undo the process or fix errors.

 

Please don't hesitate to tag my name if you need further assistance. It would be my pleasure to help. Take care!

View solution in original post

22 Comments 22
Rasa-LilaM
QuickBooks Team

How to Match Banking Transactions with Invoices and Refund Receipts

It’s nice to see you in the Community, jenuneekor.


I appreciate the detailed information about your concern. Based on the scenario, we’ll have to create an expense to record the Shopify fee. This is to ensure you can seamlessly match the downloaded transaction.


Here’s how:

 

  1. In your company, tap the New menu in the upper left and select Expense under Vendors.
  2. On the Expense page, fill in the field boxes.
  3. In the Category details section, go to the Category column and choose your Shopify fee.
  4. Then, type a negative figure in the Amount column.
  5. Click Save and close.

If you’re unable to set up the account for your fee, follow the steps in this link. You may want to check with an accountant for the specific category to use to keep your records correct.


Now that we’ve added the fee, you can start matching the downloaded data to the ones in QBO. Here’s how:

 

  1. Go to the Banking menu on the left panel to select Banking.
  2. From the list, choose the account you’re working on.
  3. Choose the For review tab and mark the box for the payout and hit the Find Match radio-button.
  4. On the Match transactions page, tick the boxes for the invoices, refund receipt, and expense.
  5. Press the Save menu.

Check out this guide for more insights into this process: Categorize and match online bank transactions in QuickBooks Online.


Additionally, these articles provide an overview of how to handle bank feeds entries in QBO.

 

Keep in touch if you have any clarifications or other concerns. I’ll be glad to answer them for you. Have a great day ahead. 

jenuneekor
Level 4

How to Match Banking Transactions with Invoices and Refund Receipts

Hi! Thank you so much for responding so quickly. I'm going to try the steps you've suggested, but I'm wondering how we will be able to track that the customer was refunded if we do it this way. We may need to look back later to see the particular customer's invoice/refund history and I feel like this way won't create any way for me to identify the refund to that particular customer. Would you share your thoughts?

MaryJoyD
QuickBooks Team

How to Match Banking Transactions with Invoices and Refund Receipts

You're welcome. It's our pleasure to help, @jenuneekor.

 

You can check all those refund receipts that you've created for your customers using the Advanced Search option. You'll just have to click on the Magnifying icon at the top and click on the Advanced Search option. 

 

Just set the filter for Refunds and the specific customer to view the receipts associated with that profile. 

 

Check this article for more information: Search for transactions. This article can tell you more about how to record a customer refund in QuickBooks Online.

 

I'm always here to provide help and answer any questions that you may have with your transactions. Have a great rest of the day!

jenuneekor
Level 4

How to Match Banking Transactions with Invoices and Refund Receipts

Hey Mary Joy,

 

Thank you for your response. What I'm asking specifically, is that if I create a refund receipt for the customer, then I don't link the bank transaction to the refund receipt but instead create an expense under "Vendors," then my refund receipt will still show that it's outstanding for that customer. I'm not matching my banking transaction to the refund receipt in the solution originally provided to me. Could you share your thoughts?

MaryJoyD
QuickBooks Team

How to Match Banking Transactions with Invoices and Refund Receipts

You're welcome and thank you for getting back to us and clarifying this concern, @jenuneekor

 

A refund receipt only records the return for your records. This won't show as an outstanding transaction for your customers. 

 

After creating an expense or check, you can choose not to match it to a downloaded bank transaction but rather process a receive payment. This will show under Outstanding Transactions where it reduces your bank's balance and offsets the customer's open credit, overpayment, or prepayment.

 

Let us know if you still have questions. Take care and have a wonderful day!

 

 

jenuneekor
Level 4

How to Match Banking Transactions with Invoices and Refund Receipts

Hi! I wanted to follow up one more time on the steps to record refunds and payments all in one transaction from Shopify in my bank feed.

 

I have a transaction of $$ in from Shopify for $45,500. This is for one invoice for $50,000, and one refund for $5,500 ($5,000 in product sales, $500 in sales tax). I click on "match."

 

I see in the invoice for $50,000 and check the box to match it.

 

HERE'S WHAT I'M STUCK ON: I need to record the return of the product, the refund of the product, $$ wise, and the refund of the sales tax, and I'd like to somehow indicate under that customer that they returned the product. This seems like all of this should be done by refund receipt and I should be able to match the banking transaction to the invoice and the refund receipt!!

 

Could you please walk me through step by step, how to accomplish this? I don't know if I'm just not getting this or what the issue is but I tried creating an expense as mentioned but then it doesn't solve each of these issues.

 

Thank you!

 

At the end of the day, I have to be able to reconcile the bank transaction, and I need to be able to record that we did have a product returned (the refund receipt). I'm still lost on this, could you please detail the exact steps?

 

 

SarahannC
Moderator

How to Match Banking Transactions with Invoices and Refund Receipts

Hello there, jenuneekor.

 

The process depends on your bank deposits the payment. If your bank combines multiple payments in a single deposit, you can deposit after you've manually created a refund in QuickBooks Online. Here's how:

 

  1. Go to the +New button.
  2. Select Refund receipt under Customers.
  3. Enter your customer's name, amount, and other required details.
  4. Deposit it into the Undeposited Funds account.
  5. Then, Save and close.
  6. Then, go back to the +New button and select Bank deposit under the Other column. 
  7. Select the checkbox for each transaction you want to combine.
  8. Then, save it. Let's take a look at this sample screenshot:

 

On the other hand, if this is a separate deposit, you can directly match the payment from the bank feed after you created the refund for the returned product

 

For additional information on how to keep transactions organize within your account, you can use these articles as reference:

 

 

Let me know if you need more help. Take care and stay safe.

jenuneekor
Level 4

How to Match Banking Transactions with Invoices and Refund Receipts

Hi Sarahann! I can't thank you enough for taking the time to review my question. This is one net deposit coming from Shopify into my bank feed (not separate). I created the refund receipt, checked "refund from undeposited funds," then created a bank receipt. I see the refund receipt there but I don't see the two invoices that were paid as part of this that I need to combine. And I need to match that bank transaction to one refund receipt and two invoices.

 

Last, after I do these steps, I will still have the shopify transaction in my bank feed. Will It match to the bank receipt or how does that work?

 

Thank you in advance if you can share the next steps?

MarsStephanieL
QuickBooks Team

How to Match Banking Transactions with Invoices and Refund Receipts

Hi there, @jenuneekor.

 

I'd be glad to share some insights about matching your invoice, refund, and bank transactions in QuickBooks Online.

 

The refund process and the sales recorded will be recorded separately when matching. If the Invoice has been paid, you'll have to deposit it to the Undeposited Funds. Once done, you'll see a positive amount in the bank feed that is detected since it is an Income.

 

I'll show you how to record the transactions separately. 

 

Recording a sale using an Invoice:

 

  1. Create an Invoice.
  2. Receive the payment and put it to the Undeposited Funds.
  3. Deposit it to the Bank. Note: FollowStep 2 in the article.
  4. Match it in the Banking page.

 

To record a Refund transaction:

 

  1. Create a Refund transaction. Indicate the product, amount, sales tax, and other charges. Then, enter the Bank account you've used to refund your customer. You can check this sample screenshot:

  2. Match it in the Banking page. I've added a screenshot for your reference:

 

When matching a refund transaction, you'll see a negative amount in the bank feeds since the money is withdrawn from your funds. This is why you're unable to match the invoice and the refund into one bank transaction. If the refund has been already sent to your customer, you'll have to wait for the bank feeds to update so that you can match it.

 

I've added an article for your future reference when you're ready to assess your business income and expenses through QuickBooks Online: Reconcile an account in QuickBooks Online. This also includes how you can undo the process or fix errors.

 

Please don't hesitate to tag my name if you need further assistance. It would be my pleasure to help. Take care!

View solution in original post

jenuneekor
Level 4

How to Match Banking Transactions with Invoices and Refund Receipts

MarsStephanieL, THANK YOU! This was exactly what I needed. Two notes: 1) I put the refund receipt into Undeposited Funds as well, so when I went to "bank deposit" both the invoices and the refund receipt were in there so it was one step! 2) The only thing missing was the Shopify Fees portion of it, and I added that as an additional deposit at the bottom and just made the number negative. Everything matched perfectly. Thank you so much!

Kiala_S
QuickBooks Team

How to Match Banking Transactions with Invoices and Refund Receipts

Good morning, @jenuneekor! I'm so happy to see you get the help you need in the Community. It takes a team effort and together (with your help) we got you where you need to be in your account. Thank you for updating us! 

 

Please don't hesitate to reach out to us again. We're happy to help you, always!

jenuneekor
Level 4

How to Match Banking Transactions with Invoices and Refund Receipts

Hello! I was hoping to ask a follow up question. The response to my original question worked great when the bank transaction was net positive. However, today I have two refunds grouped together in a shopify payout. I tried to follow the same process, but QB will not let me create a bank deposit that is negative.

 

Could you please advise the steps when it's solely for two refunds combined? I did create a refund receipt for each one and put them into undeposited funds.

 

Thank you so much!

Charies_M
Moderator

How to Match Banking Transactions with Invoices and Refund Receipts

Welcome back to this thread, jenuneekor.

 

In QuickBooks Online (QBO), you can match multiple bank transactions to one but you can't do it the other way. Since a combined refund can't be matched to multiple transactions, you'll want to manually clear the transaction from your register.

 

Here's how to do it:

 

  1. Go to the Accounting menu, then Chart of Accounts.
  2. Select the bank.
  3. Choose the transaction. Under the Check column, click until it shows "C".
  4. Click Save.

 

Feel free to visit these links about reconciliation in QBO for reference:

The Community is always open if you have other questions. I'll be around to help. Wishing you a great day ahead!

jenuneekor
Level 4

How to Match Banking Transactions with Invoices and Refund Receipts

Hi! Thank you very much for this information. I'm wondering after looking through the steps you suggested, what happens to the two refund receipts I have in my customer accounts that aren't "matched" to anything? I need a way to record that these customers were refunded for their purchase. Thank you!

Joesem M
Moderator

How to Match Banking Transactions with Invoices and Refund Receipts

Hello there, @jenuneekor.

 

I appreciate you for following the steps provided by my colleague which is manually clear the transaction from the register. Since the transactions are already cleared, it will go back to the For Review tab. From there, you can add the refund receipt, so the amount is recorded to the correct posting account. Let me show you the steps.

 

  1. Go to the Banking menu on the left panel and choose Banking.
  2. From there, select the bank you’re working on.
  3. In the For Review section, click on the entry to expand it.
  4. Then, click the drop-down for Category to select the account.
  5. Once done, hit the Add button.

 

See this article for more details: Assign, categorize, edit, and add your downloaded banking transactions.

 

However, if the transaction is already excluded, you undo it so it will go back to the For Review. Just select the Excluded tab, select the checkbox for the transaction, then select Undo

 

For more details on excluding transactions, you can view it by clicking this link: How to exclude expenses from downloaded bank transactions?

 

Once done, here's a complete guide in reconciling transactions. It also include steps on how to fix issues in case you encounter one:

 

 

If there's anything else that I can help you with, please let me know in the comment section down below. Take good care.

 

 

jenuneekor
Level 4

How to Match Banking Transactions with Invoices and Refund Receipts

Hi all! I'm following these steps, but when I go into Chart of Accounts, this transaction isn't in there. To confirm, I have not matched it or done anything with it in my banking transactions, it's still sitting there. Do I need to do something with the transaction in my bank feed in order to make it show in Chart of Accounts?

 

Thank you!

Ryan_M
QuickBooks Team

How to Match Banking Transactions with Invoices and Refund Receipts

Hi @jenuneekor,

 

Thank you for your prompt reply. I'll point you in the right direction for support with your query.

 

At this point, I suggest you contact our Technical Support team for further assistance. They can remotely view your screen with your permission and investigate your current situation. They can then provide a resolution for your issue. 

 

See this article for the steps: QuickBooks Online Support

 

When you're ready, you can proceed with bank reconciliation. It's to ensure everything in your bank register is correct and matches your bank statement. Follow the steps in this article: Reconcile an account in QuickBooks Online.

 

I'll be around to help you out if you need further assistance. Post a comment, and I'll get back to you. 

hones720
Level 1

How to Match Banking Transactions with Invoices and Refund Receipts

This answer is incomplete. In it you assume that a check was written for the refund. What happens when the refund is issued to the issuing credit card? If it is a cc you do NOT have the option of choosing the account from which the money came. Furthermore when a cc refund is issued it automatically reduces sales by the refund amount (which it should). But then the bank feed comes down. How do you match the bank feed to the refund? The bank feed shows as an expense (which it is not).

IamjuViel
QuickBooks Team

How to Match Banking Transactions with Invoices and Refund Receipts

I appreciate you for sharing a complete details about your concern, @hones720.

 

When record customer refund in QuickBooks, you'd want to make sure to select the same method the customer used in paying you and bank account where the actual payment was posted. This way, it make sure that your bank balance is correct. Also, this makes matching your transactions a lot more easier. I've added a screenshot for your reference.

  1. Go to the + New icon.
  2. Select Refund receipt.
  3. Choose the name of the customer you want to refund from the Customer ▼ dropdown.
  4. Fill out the fields using the info from the original sale.
  5. Pick Credit Card from the Payment method drop-down.
  6. Make sure to select the same Bank account you wish to refund the customer from.  
  7. Click Save and close.

Once completed, you can now match the manually added transactions to the downloaded ones. 

 

You can read through these articles to help you manage your customer-related transactions:

Keep me posted if you have other questions or concerns by leaving your comments below. I'm just a few clicks away.

roberta1
Level 2

How to Match Banking Transactions with Invoices and Refund Receipts

This only works if you are doing a straight refund.  However, if I have several invoices and sales receipts and issue a refund on the same day then the bank feed shows (invoice payments) - (refunds) = total deposit.  I have no way to match that, even when I refund the customer as shown above because the total deposit from the Intuit gateway to my bank is invoice - refund = total deposit.

Noxious
Level 1

How to Match Banking Transactions with Invoices and Refund Receipts

Again I think the CC refund answer is incomplete.  The "Refund From" field does not appear if you are processing the refund though an integrated merchant account.  

MaryJoyD
QuickBooks Team

How to Match Banking Transactions with Invoices and Refund Receipts

I can share some information about creating a refund receipt transaction, @Noxious

 

There should be a Refund from field in the Refund Receipt page with or without an integrated merchant account in QuickBooks Online (QBO). To isolate why you don't have this field, I suggest reaching out to our Customer Support team.

 

Their tools can get into your account in a secure environment, verify the issue you're having and help you in resolving it. You can reach them by going to the Help icon at the top right of the account. 

 

Follow the steps below: 

 

  1. Go to the Help icon to connect to a live support agent. 
  2. Click on the Contact Us button and provide some details about this concern.
  3. Provide us some information about your concern in the What can we help you with? box and click on Continue.
  4. You'll now be provided options on how to connect to our Customer Support. 

 

You can check this article for more information about the different types of support we offer and their availability: QuickBooks Online Support.

 

Refer to the following article for more information about using a refund receipt, check, or expense in recording a refund for your customers: Record a customer refund in QuickBooks Online.

 

I'm always here if you need help in recording your transactions and or anything else. Just let me know by leaving a reply below. Take care and have a great rest of the day!

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