I need to refund a credit card in Authorize.Net. I will receive an email when the money is withdrawn from our ck acct. How do I enter this in Quickbooks and match it?

Hi,

I posted a question a few days ago, but didn't really get an on-target response. Then I saw Jennifer's question, which really is close to mine:

• Because of an event cancellation, I've been doing lots of credit card refunds via authorize.net.
• Each day that I've done refunds, Authorize.net assembles multiple transactions into one un-itemized amount and puts it in my Wells Fargo checking account as an entry for that day. For example, on one day in April, I refunded 35 credit card transactions, totaling $5000; this then shows up as one entry in my Wells Fargo checking account -- it shows up as a lump sum, without itemizing the 35 refunds that form its parts.
• In Quickbooks, which is connected to my Wells Fargo checking account, I see the entry for $5000 when I'm in  the Banking, under Review -- but, I don't see Add or Match, only Record Transfer.
• I've been told not to choose Record Transfer, but rather to create journal entries in Quickbooks to balance these transactions and my balances between Wells Fargo and Quickbooks. 
• Is this true?
• If so, can you please tell me, step by step, how I would create a journal entry for this transaction, especially if it's not clear which individual transactions went into the total amount? I'm brand new at this, so I would appreciate it if you told me even where I should be in Quickbooks when I start: In Banking? Expenses? Charter of Accounts?
• And, is it necessary for me to try to find out from Authorize.net exactly which transactions went into the lump sum in Wells Fargo? I ask because the Authorize.net transaction record for that day shows a total amount near, but not exactly, the amount that shows up in Wells Fargo, and it's not possible to tell which other records Authorize.net may have included in addition to the ones for that day's transaction report.

I hope this isn't as confusing to you as it is to me, and thank you so much in advance!

Thanks for providing all the details about your concern, SueTy.

With regard to the accounts affected on the journal entries, I'd recommend consulting with your accountant to ensure that your reports are accurate. Here's an article that includes a video tutorial: Create a journal entry in QuickBooks Online.

I'd also like to share another way on how you can settle the transactions. If you've recorded the refund individually in QuickBooks, you can select the Find match option or exclude the transaction. Then, manually clear the refund transactions in QuickBooks.

To exclude, here's how:

1. Go to the Banking > For Review tab.
2. Select the transactions by putting a check mark on the boxes and click the Batch actions drop-down menu.
3. Choose Exclude Selected.

Once done, the transactions will be added to the Excluded tab were you can undo or delete them. Here's an article for reference: Exclude expenses from downloaded bank transactions.

For clearing the transaction in the bank register, you can follow these steps:

1. On the left panel, select Accounting > Chart of Accounts.
2. Click the View register link of the bank account where the check was added.
3. Find and select the check to show the options. Under the Reconcile (indicated by a check mark) column, click the blank field until you see the letter C. This letter means Cleared and the letter R is for Reconciled.
4. Press the Save button after.

After the steps above, you can start reconciling your account. I'm also adding these articles that you can bookmark for future reference:

• Categorize and match online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

Please let me know if there's anything else you need. I'm just a few clicks away to help you some more. Take care.

Dear RenjolynC,
I so appreciate your response -- I don't quite understand it, but I think what you're saying sounds like it's where I need to go with this -- I'll look at all this over the next few days.

Just a quick follow up: Authorize.net is sending itemized reports of credit card refunds to Wells Fargo on various days (we have lots and lots of these refunds), but Wells Fargo isn't posting exactly the amounts of these transactions on those days, and nothing's itemized. Still, the total amount of refunds Wells Fargo is recording does add up: for example, where Authorize.net is sending two itemized transaction reports, one for $5300 and one for $2700, Wells Fargo is posting them as $5000 and $3000. 

If I understand what you're saying here, in Quickbooks, can I just manually enter each transaction from Authorize.net, so I have all of these transactions listed that result in the overall total of credit card refunds (in my example, $8000), and then exclude the entries in Wells Fargo and Quickbooks that aren't itemized: the ones for $5000 and $3000?

If this is correct, would I enter these as individual journal entries? And then, reconcile from there?
I am not sure that this makes sense to anyone but me, but that's a total novice accountant for you! :)

Thanks again so much in advance, RenjolynC!
--SueTy

Yes, you understand it correctly, SueTy. You'll have to manually enter each transaction from Authorize.net in QuickBooks. This way, you'll be able to keep track of your refund transactions and manage your books accurately.

Let me layout to you the step-by-step guide on how to manage your refund transactions in QuickBooks. Before we start, you need to acquire the itemized list of credit card refunds from Authorize.net.

Once ready, you can start by manually recording each transaction in your QuickBooks Online account. You'll have to repeat the process until you record the last transaction. Here's how:

1. Go to the +New button.
2. Select Refund receipt.
3. Enter all the needed details. Please make sure to select your Wells Fargo checking account in the Refund from field.
4. Click the Save and new button.

Next is to go to the Banking menu to exclude the downloaded transactions from your Wells Fargo checking account. You can refer to the steps provided by my colleague RenjolynC above. Also, here's the article that contains the complete details on how to perform the process: Exclude downloaded bank transactions.

Finally, go to the Accounting menu, select Chart of Accounts, and then view the Wells Fargo checking account's register. From there, you'll have to manually clear the status of the recorded transactions. Kindly refer to the steps provided by my colleague above.

Moreover, I'd recommend reconciling your accounts every month to early detect errors and monitor the growth of your business. For more details, you can check out this article: Reconcile an account in QuickBooks Online. It also contains information on how to edit completed reconciliations.

Please let me know if you have other concerns. I'm just around to help.

Dear Rea,

Thank you so much -- I'll be trying all of these things out. You and your colleagues are great! And, I may well be back in touch.

Many thanks again!

SueTy

Hello again, Rea,

Before I begin, a quick question: Are you and Renjolyn both saying that, if I create a refund receipt for each entry, this replaces the need for a journal entry? In other words, I can just skip the whole journal idea, and instead just enter refund receipts manually for each transaction I see in the Authorize.net report? 

If so, that sounds like good news -- I've heard you can really get into trouble with journal entries! And, can I undo the refund receipts, if it turns out I've messed them up somehow? 

Please confirm -- and, yes, I'm terrified. Thanks again so much to both of you!

That's right, SueTy. You'll create a refund receipt instead.

A journal entry is the last resort for entering transactions. You can only create one if you're following your accountant's advice.

Regarding the second question, you can always undo the refund receipt by deleting and recreating the transaction. I'll show you how to delete it:

1. Open the refund receipt.
2. Click More, then Delete.
3. Select Yes to confirm.

Feel free to get back to this thread if you have more questions. We're right here to help you.

Dear Kristine,

I am so grateful to you and all of the wonderful folks who've helped me along with this. Every one of you has been so patient, and I'm so impressed. This looks doable -- and I'm so glad it can also be undone if I end up going somewhere I shouldn't! :)

Thanks again so much!!

--SueTy

Hello again Kristine -- and everyone else who's been helping me!

So, I have entered all of my refunds as receipts as directed. I'm still having a couple of problems, though.

One of them has to do with the annoying way that Authorize.net reports are going from into my Wells Fargo checking account, and from there into QBO.

Here's what's happening: On a particular day, the Authorize.net report shows two refunds, each for $300, plus a deposit for $165. This all shows up in Wells Fargo as a "bankcard deposit" (actually, a negative number) of ($435). I see how this makes sense (-600 + 165 = -435).

But, in QBO, when I review the ($435) and try to match these three entries to it, QBO won't let me -- it lets me put in the two refunds, but it doesn't let me add in the deposit. So, won't let me get beyond the (-$600), and then tells me I've got it wrong.

I tried to search for the deposit, so I could add it in, but when do this, QBO doesn't find it. I do see the receipt for the $165 under Sales, but not under Review.

Then, I tried to just exclude the ($435), but couldn't find any of these transactions under Review -- only under Sales or Expenses.

Is there a way that I can combine debits and credits in one entry in QBO? 

And, when I exclude an entry, how do I find all of the receipts, so I can review and match them to what's happening in my checking account?

Thanks again for your help -- I'm still very far from being able to balance my books ... I appreciate it so much!

Cheers,

SueTy

Hi again Kristine,

I just emailed you again, but can't find it -- I wanted to attach an image. 

In brief, I created refund receipts for all of the entries I mentioned in an earlier conversation with you and your great colleagues. I'm still having a problem reconciling things, though: For example, Authorize.net sent the amount from a transaction report to Wells Fargo in the amount of ($435) -- the amount is from two refunds totaling ($600) and one deposit of $165, for a total of ($435). This also shows up in QBO as ($435). But, when I try to match the entries that make up this total, QBO won't let me combine the refunds with the deposit, so it won't let me get to the amount of ($435) coming in from Wells Fargo. I tried to exclude the ($435), but then I couldn't find the individual entries -- the two refunds and one deposit -- unless I went to the Expenses and Sales areas in QBO -- I didn't see them in the "For Review" or "Reviewed" areas.

So, two questions: When I create refunds, can I only see them in Sales, unless I have some sort of multiple-record entry that I can try to match them to? And, if I can only see them in Sales, how can I be sure that they're being deducted in QBO -- does that happen when I reconcile?

Also, if I want to mix refunds and credits to match a conglomerate entry coming in from Wells Fargo, can I do this?

I've attached an image showing that entry and another one that has combined refund amounts coming in from Authorize.net -- they're not itemized, and Wells Fargo has changed the amounts, so they don't match what is coming in from Authorize.net exactly. When I try to match individual refunds in QBO to add up to the sum of the entry for $13475, I can't -- and, QBO stops me. If I excluded the total, $13475, I again have the problem of not being able to see any of the receipts I created except in Sales, so I don't know how to properly account for them and get my QBO to balance with Wells Fargo. Do you know how I can get this to work? Thank you so much once again!

Thanks for getting back with detailed information, SueTy.

We won't be able to match the transactions you entered manually to the ones in the Banking (For Review) if they have different nature (debit or credit). To avoid confusion and duplicates in your register, we can exclude the ones on the Banking (For Review), and clear the transactions in your register manually.

You can follow the steps in this link to exclude the banking transactions: Exclude expenses from downloaded bank transactions.

Meanwhile, this link also gives you the detailed steps on how to clear the transaction in your register manually: Undo and remove transactions from reconciliations in QuickBooks Online.

Go to the Step 2: Unreconcile a transaction section and mark the transaction as Cleared (C) instead of blank.

If you have additional queries about it, please let us know. We're here to support you til you can reconcile your account. Have a great day!

Dear James, 

Thank you so much! I'll try what you suggest tonight.

I'm afraid I'll "break" something, but I'm trying to just overcome that and plow ahead. You all are the best!

I'll be back in touch if things don't work out. 

With appreciation,

SueTy