Matching credits/ refunds to received payment along with invoices

Let me help match the invoice to the payment downloaded on the Banking page, Tay18.

In QuickBooks Online, you'll first need to apply the credit to the invoice. That way, it will show the remaining balance on the customer's account.

Here's how to manually apply a credit memo to an invoice.

1. Click + New, then select Receive payment.
2. From the Customer drop-down, select the customer.
3. From the Outstanding Transactions section, select the open invoice you want to apply the credit memo to.
4. In the Credits section, select the credit memos you want to apply.
5. For the open invoice in the Payment column, enter how much of the credit you want to apply.
6. Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
7. Fill out the rest of the form, including the Payment date.
8. Make sure the total is correct after applying the credit memo.
9. When you're done, click Save and close.

Once done, go to the Banking page and match the payment to the invoice.

Your next step is to keep to compare each bank transaction with the ones entered into QuickBooks. If everything matches, you can reconcile your bank accounts every month. Here's how to get started: Complete reconciliation guide.

Stay in touch with me if there's anything else you need about matching transactions. Just leave a comment below and I'll get back to you.

Hi there, I think you miss understood what I am trying to do I am not trying to just apply a credit memo to an invoice I receive deposits to my bank in one whole amount that consist of multiple invoices and refunds for multiple customers. So when I bank match there are credits in there affecting that amount I am trying to bank match I am trying to find a way to bank match transaction to invoices and refunds. The refunds do not apply to the invoices in that transaction. But when bank matching there is no way that I can see to apply credits or a refund receipt to the deposit.

I am trying to match my deposit from the bank to the credit and payments from Merchant Services.  So if I have $400 in deposits and $100 in credits the actual deposit to my bank is $300.  QB deposit only allows me to select the $400, how do I apply the $100 in the credits to match the deposit?

The Community is here to hear your sentiments and questions, @Kimjnwa90. I appreciate you for reaching out to us.

I'd be happy to assist you with matching your deposit in your Merchant Services. Let's start by doing a Receive payment of the Invoice in question and deposit to Undeposited funds. Create a Bank Deposit. Place a checkmark to choose the payment to deposit when you see it in the Existing Payments section. Under the Add funds to this deposit section, enter the amount of negative 100 and select the Expense account you use to track these fees. Then, hit Save.

Once done, it will automatically match the deposit, or you can do it manually.

You may visit this article to learn how QuickBooks match and record bank deposits for you: Automatically record QuickBooks Payments bank deposits.

Feel free to get back to us if there is anything else you need help with in matching your bank deposits or if you have any concerns. We're here to assist you at any time. Take care!

I have a customer with a 5000 credit for which I have already transferred back to them in the form of bank transfer.  The debit to my account shows up in the bank feed and I wish to match it to the credit on the customer account.

Expressed another way, we billed the customer 10000 and they sent us 15000.  We refunded the 5000 using ACH at the bank.  In QBO, it still shows a 5000 credit on the customer's account.  How can I match the bank transaction (debit) to the existing credit on the customer account?

Thanks!

Thanks for getting involved with this thread, gothducks.

You won't be able to match the transaction to your credit after recording the refund in your books and linking it with the customer's credit.

If you haven't done it yet, initially you'll need to record your refund.

Here's how:
 

1. In the event you're in Business view, switch to Accountant view.
2. Use your + New button, then choose Check, Expense, or Add expense. 
3. Specify a customer from the Payee ▼ drop-down list.
4. Pick the bank account you deposited their overpayment to with your Payment account ▼ drop-down.
5. On the first line of your Category column, choose Accounts Receivable.
6. Enter how much you refunded.
7. Fill out any other necessary fields.
8. Select Save and close.

Next, you'll need to link the refund to your customer's credit.

I've also included a detailed resource about matching transactions which may come in handy moving forward: Match online bank transactions

If there's any additional questions, I'm just a post away. Have a wonderful Tuesday!

This is what I did.  I created a Credit Memo in the amount of the refund along with the customer name, the account from which it is coming from and the type of transaction (ETF).  I was then able to match the refund in the bank feed to the Credit memo.

Thank you!

The reason this worked is because I didn't do a good job on explaining some details.  The invoice was originally in the amount of 16K and a bank transaction was matched to it.  I originally removed the 10,500 line item on the invoice leaving a customer credit.  

I deleted the original match on the 16K, put the 10,500 back on the invoice, and THEN issued a Credit Memo for which I was able to match to the EFT refund in the amount of 10,500.

Sorry for the two posts, it wouldn't let me edit the last one.  Thank you!

Thats why I pretty much exclude all bank transactions that come through Quickbooks.  Its just a mess sometimes.  If you know where everything goes, I would just exclude the deposit and do your thing and apply credits and payments where they need to go yourself.  If you want to keep it cleaner when reconcilling the monthly account, I would do one journal entry for the entire deposit.  But thats just me.  That banking feature can be a nightmare.  My accountant told me not to use it.