Matching QB Bank Feed with Refund Receipts and Invoices

It's good to see you here, @jenuneekor. Let me provide some insights about matching transactions in Quickbooks. 

In QuickBooks Online (QBO), you can match multiple bank transactions to one, but you're unable to do it the other way. Also, there isn't a way to match a combined refund to multiple transactions. In this case, you can manually clear the transaction from your register.

Here's how:

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

Once the transaction is cleared, it will go back to the For Review tab. From there, you can add the refund receipt, so the amount is posted to the correct account. 

Here's how: 

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

For more information, please refer to this article: Assign, categorize, edit, and add your downloaded banking transactions.

Additionally, I'll be adding these resources to help you in the future: 

• Learn the reconcile workflow in QuickBooks
• Reconcile an account in QuickBooks Online

Don't hesitate to leave a comment down below if you have other QuickBooks concerns. I'll be happy to help you. Stay safe and have a pleasant day.

Hi! Thanks for your response. Could I confirm a few things here?

1) I have not matched the transaction sitting in my bank feed to anything.

2) Thus, when I go into Chart of Accounts and click on the account, it's not there. Should I be adding this as a new transaction in there?

3) When you said "Once the transaction is cleared, it will go back to the For Review tab. From there, you can add the refund receipt," I've already created the refund receipts. How do these get "matched" to this bank transaction so we know those refund receipts were closed?

4) At the end of all of these steps, I should have "matched" this transaction in my bank feed or cleared it or whatever, and I need the refund receipts to show that they were closed. Do the steps you give me below do that?

Thank you!

Jen

Thank you!

Thanks for coming back to us, @jenuneekor.

We can check on your Bank Register and see if it's filtered for a specific date of transactions.

Here's how:

1. Go to the Accounting menu, and then select Chart of Accounts.
2. Select the bank account from which transactions are missing.
3. From the Action column, select View register.
4. Sort the register by the entries in the Date column.
5. Select the Filter icon, above the Date column.
6. From the Reconcile Status drop-down menu, choose All.
7. Click Apply.

For more information about this process, please refer to this article: Bank transactions are duplicates, missing or wrong, or bank balance not updating.

Also, you can match your transactions by clicking on Find Match on the Banking page. Let me guide you how. First, you'll need to make sure that the transaction intended for the refund is entered in QBO.

Next, locate the refund transaction from the Banking page and match it to the transaction. Here's how:

1. On the left panel, click on Banking.
2. In the For Review tab, select the refund transaction.
3. Click on Find Match.
4. On the Match transactions page, select the transaction for which the refund was for.
5. Click on Save.

You may read this link in your free time: Add and Match Downloaded Banking Transactions.

Don't hesitate to drop a comment below if you have other questions. I'm always here to help. Take care!

Hi again! The transaction is definitely not in the Chart of Accounts. Please note that I have not matched it to anything in my bank feed. You can see in the screen shot below, this is sitting waiting to be "matched."

At the end of the day, I just need instructions on how to match this "payout" from shopify to the two refund receipts it's associated with. I'm kind of surprised by how complicated this is. Could you please provide specific steps on how to do this? A QB rep before gave me step by step instructions on how to match when the transaction was net positive, using undeposited funds. It worked great. I just need instructions on how to match a net payout from Shopify that's negative in my bank feed, with the two refund receipts I've already created.

Thank you!

Jen

Joining the thread to help with your follow-up questions, jenuneekor.

First, the refund receipt should be in the same bank where the transaction was downloaded. Otherwise, you will not be able to match them if the refund receipts are not in the bank register. You can open the refund receipt and choose the bank in the Refund from field. 

Second, make sure that the total amount for the refund receipts is equal to the downloaded transaction. QuickBooks Online will only consider it as a match if they have the same amount. 

Then, follow these steps on how to match single downloaded transaction to a multiple record in your bank register:

1. Go back to the For review tab and look for the net payout.
2. Click on the transaction and select Find match.
3. Look for the refund receipts and check both boxes before them. 
4. Click Save. 

Please don't hesitate to reach out to us again if you need more help with QuickBooks, 

Hi JenoP! Thank you so much for your response. I have one additional question. When this transaction is net negative and it includes charges and refunds together, would you please share those steps? I did walk through what you shared below and it's perfect to capture the refund receipts but doesn't give me the option to include the invoices that were paid as part of that payment as well.

There are two invoices that were paid for a total of $1,047.25

There were two refunds that were paid for a total of $4,638

There were Shopify fees of $411.63

Net bank transaction is $4,002.38

Thank you so much!!

Hello again, jenuneekor.

Thanks for keeping us updated and providing additional details about your concern. 

To get this fix, we can use the Resolve difference feature to match your transactions until it equals to zero. 

Here's how:

1. In the left menu, click Banking or Transactions menu. 
2. Go to the Banking tab and select the Bank account. 
3. In the For Review tab, locate and click the transaction to expand.
4. Select the Find match button to open the Match transactions window.
5. Look the transactions for the match. You can also use the filters to narrow down your search.
6. Scroll to the bottom of the table, and then click the Resolve Difference button.
7. Enter the invoice details and make sure the total is zero.
8. Once done, click Save.

To learn more about matching transactions, you can check out this article for more guidance: Categorize and match online bank transactions in QuickBooks Online.

If case you run into some problems when reconciling your accounts in the future, refer to this handy article to resolve them: Fix reconciliation issues in QuickBooks Online.

You're always welcome to comment below if you have followed up questions when matching your transactions. I'm just around to help. Take care always.

Hi! Thanks so much, again. The only issue here is that when I go into the transactions, it only shows expenses and bills since it is a net negative transaction. It doesn't list any invoices so I can't match it to the invoices that were paid. Could  you share how I would handle this with the refunds and invoices?

Hi there, @jenuneekor.

You can create a Check to the specific amount then add a line item for the sales as a negative amount. In this way, you can match the transactions to the bank feeds. Let me show you how.

1. Click the + New button.
2. Select Check.
3. Choose the Payee from the drop-down list.
4. Enter the necessary details to match the transaction.
5. Example: make the refund and charge fees as the positive amount, then the sales as a negative amount.
6. Select Save and close or Save and new.

Once done, you can now match your transactions. Just follow the steps shared by my colleague on how to much them. 

I'm also adding this article to further guide you in managing the growth of your business using QuickBooks: Help Articles. It includes topics about account management, banking, and expenses, to name a few. You can click the + More topics button to view other selections.

If there's anything else you need help with, please reach out to me. I'd be sure to jump in as soon as I can. Thanks for posting and have a great day.

I'm sorry, I'm totally not getting this!

1) When you reference the "payee" in your recommended steps, are you referencing putting shopify as the payee and putting the products/services for all refunds and invoices on this one check to net out to the amount? Or, are you suggesting I create one check for each of the invoices and one check for each of the refunds, so four checks total?

For example, I have two refunds to different customers, and two sales to two different customers so there are four customers' transactions I'm trying to reconcile.

2) I feel like if I do it this way, it's not going to match the payments to the invoices and the invoices that are part of the transaction will still show that the balance is open, right?

I do know how to match transactions, I do it every day. But the issue here is that I have two separate refund receipts I've created, and two separate invoices I've created, and I need to match this one shopify payout to all of them.

I've gotten several responses on this thread, each one different than the last, and I can't get this to work and also don't see how it will show the refund receipts as paid, and the invoices as paid as well.

Thank you all so much for your help! This process worked!!

Hi jenuneekor, 

I noticed while searching for my issue that you had had the problem of matching refund receipts to the outgoing bank transactions. I am overwhelmed at all the responses in your thread. Will you please share which one worked? I have tried this multiple ways with no luck. I see my refund receipt entered, but I can never find a match for the transaction due to it not showing up. I want to make sure I do this correctly to reduce the sales tax liability when there is a refund. 

thanks in advance for your help!!

I have sort of a same issue. We have 3rd party software that processes payments for us, and is integrated into our QBO. We had a client pay twice and had to refund the one that was paid by CC. I did this through the 3rd party application and was told that the refund transaction in the bank feed would be able to be matched up to the refund journal entry they automatically created. They had me create a duplicate invoice so I could apply the 2nd payment to that invoice, which I did and that is fine. But the bank processed the refund AND another invoice payment at the same time, resulting in a deduction from our account rather than a deposit. A refund receipt shows in the bank register as $5220.98. A journal entry (from the 3rd party) for the invoice payment deposit is in the bank register for $913.28. The downloaded transaction in the bank feed is $4307.70, which matches the sum of those two perfectly. But I can't match them to bank feed transaction because neither show up to choose from. How can I handle this so that I can get everything matched properly and the bank feed cleared out?

Hi there, Jenn. Let me help you clarify your queries about handling your bank feed transactions in QuickBooks Online (QBO).

Please know that you're unable to match transactions in your bank feed if they have different amounts and transaction types. To rectify your issue, please follow the process below.

First, exclude the downloaded transaction ($4307.70) from your bank feed. Here's how:

1. Go to Transactions, then choose Bank transactions (Take me there).
2. Select the For Review tab.
3. Find and click the transaction in question.
4. Hit the Exclude option at the bottom.

Once done, let's skip the matching process. Instead, manually clear the refund receipt ($5220.98) and invoice payment ($913.28). I'll show you how:

1. Go to the Accounting menu, then select Chart of Accounts.
2. Locate the account, then click View register in the Action column.
3. Find and select the transactions you want to remove.
4. Under the ✔ column, click the box repeatedly until the letter C appears.

You may refer to this article on how to find transactions quickly and easily using the search tool: How to search for transactions in QuickBooks Online.

Please check out this article to learn how to review downloaded bank and credit card transactions and put them in the correct accounts: Categorize and match online bank transactions in QuickBooks Online.

I'm always around the clock to help you with your transactions or other banking-related tasks. Leave a comment below.

Thank you for posting in the Community space, a_arm_strong01. I’ll explain how to match your invoice, refund, and bank transactions in QuickBooks Online (QBO).

The refund and sales will be recorded separately during the matching process. If the invoice has been paid, it should deposited into the Undeposited Funds. After this, a positive amount will appear in the bank feed as income. I'll outline the steps to manage your transactions efficiently:

1. Create an invoice.
2. Receive the payment and put it into the Undeposited Funds.
3. Deposit it to the Bank. Note: Follow Step 2 in the article.
4. Match it on the Banking page.

To record a refund transaction based on various scenarios, refer to this article below:  Creating a refund transaction in QBO.

Please note that it is important to indicate the product, amount, sales tax, and other charges. Then, enter the Bank account you've used to refund your customer and proceed to match online bank transactions.

Moreover, when you match a refund transaction, you'll notice a negative amount in the bank feeds because the funds are being withdrawn. This is why you can’t combine the invoice and the refund into a single bank transaction. If the refund has been sent to your customer, you'll need to wait for the bank feed to update before you can match it.

To help you keep updated and accurate financial records, I'll share this resource containing helpful tips about reconciliation. It also includes how to undo the process or fix errors: Reconciliation in QuickBooks Online.  

Tag my name if you need further assistance matching a refund receipt or any other concerns in QBO. It would be my pleasure to help. Take care!

I am responding 3 years late but only because it took me hours in my own to figure this out.  Create a bank deposit for the invoice payments and then make sure the refund receipt was done out of undeposited funds, not the bank account.  All of the invoice payments and the refund receipt will show up when you create the bank deposit.  When you go to match the net deposit, QB will recognize the bank deposit and you will be able to match.

Hi there, I'm in a similar boat - still confused on how to match a deposit that has refunds in it.

Hoping you can walk me through step by step how you did it!

Thanks in advance!

Took me a few minutes to find where to Click "Bank Deposit"

It is under "+ New" then "Other" and then "Bank Deposit"

I am still trying to figure out the "Net Negative" solution.

But thank you so much for figuring this out.

With so many third party vendors like Shopify (my issue was with SportsEngine) using similiar batch transactions, you would think Quickbooks would come up with a better and easier solution.