Partial refund within Square, trying to match daily balance transfer

Hi RVtraveler. Glad to see you reaching out to the community. Recording a refund in QuickBooks Online is just as easy as QuickBooks Desktop. Here are some quick instructions on how:

1. Select the + New icon
2. Then choose Refund Receipt
3. Next, I've highlighted all the required sections in the video below for you. Fill them in and move to the next step.
4. Select Save and Close
5. You'll be presented with a confirmation the refund was recorded. 

After that, you may match the transaction from the bank with this refund recorded in QuickBooks Online like normal. Here are a couple of articles that may help provide some further insight as well:

• Record a customer refund in QuickBooks Online

• Categorize and match online bank transactions in QuickBooks Online

• Unmatch or move bank transactions after reviewing them

Please let me know if you need anything else, I'm always happy to help. And have a great rest of your day. 

Hi Steve,

Thank you so much for your quick reply.  I actually created a refund receipt when we told the customer that we would do the partial refund.  At that time everything on the receivable looked correct.  Yesterday the feed from our bank showed the deposit to our checking, with four full payments and the credit for the customer.  When I tried to match and receive the payment however, their was nothing to match the credit transaction to.  I tried matching the other payments, and then manually entering the refund in the deposit - which made the total received correct, but then the receivable actually shows the $25 as outstanding again.  

I'm not sure how to set this up so that it will show in the items to be matched.   

Thanks again for your time.  

Hi RVtraveler. It's splendid to hear from you again. In addition, thank you for the extra details because they definitely help. However, for me to best help I believe a few more details may be needed. 

First, did you give the customer store credit or a cash refund? Second, are all the transactions coming into the bank feed separately or as a batch transaction?

If the refund was intended to be store credit, you'll need to input a Credit Memo and delete the Refund Receipt. 

If the refunds were meant to be a cash refund either to their credit card or another means, you can simply exclude the $25 transaction since a refund receipt was already recorded. 

Here are a few articles that may aid you as well:

• Exclude expenses from downloaded bank transactions

• Unmatch or move bank transactions after reviewing them

• Enter and apply credit memos and delayed credits in QuickBooks Online

Please let me know how everything goes, if you require further assistance with any of the processes, or if the situation is a bit different than the two I described just let me know. I'm always happy to help and hope you have a great day. 

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Hi Steve,

I just posted a lenghty response, but when I hit "post", I received an error message and the message box went blank - so I apologize if you receive this twice.

She received her partial refund through Square, so I would assume back on her credit card.  

Here is what I have on our books related to this transaction:

1)  the initial sale invoice, recorded at the full $125 on 4/26

2)  the receipt of the full $125 from Square into our bank account on 4/27

3)  a refund receipt issued on 5/6, for $25

4)  a deposit from Square, into our bank account on 5/6 including four other customer invoices paid in full - minus the $24.33 from the refund transaction.  (It was $25 to the customer, less a $.67 credit to us for Square fees)   The four invoices paid totaled $452, but the net deposit was $427.67.  In order to match this deposit to the other invoices, I need a $24.33 charge to balance. 

I was trying to somehow match it to the refund issued, as I did the other payments to the invoices - but it didn't show up.  I finally deleted the refund receipt and entered the difference as follows:

Matched the other customer payments and invoices

At the bottom of the page turned on the "resolving transactions" and entered:
$-25.00 to Sales

$.67 to Square Fees

It seems to have corrected the problem, other than there is no record of the refund in the receivable detail.  Can you think of any other issues this could cause me?  Is there another way to handle this?

Thanks again for your time.  

Thank you for the detailed information, @RVtraveler.

The easiest way to handle this scenario is to record a receive payment for the payment of all the invoices and process a refund using the Undeposited Funds. From there, you can create a bank deposit, select the payment recorded including the refund receipt for $25. Once done, go to the Add Funds to this deposit section, use an expense account for Square fees, then enter a negative value for $-0.67.

To record a payment:

1. Go to the New (+) icon.
2. Select Receive payment under Customers.
3. Choose the customer name, then select the invoices you want to pay under the Outstanding Transactions section. 
4. Pick Undeposited Funds under Deposit to.
5. Tap Save and close to record the transaction.

To record a refund, follow the steps provided by Steve_C above and just make sure to select Undeposited Funds under the Refund From section.

To make a deposit, check out this article.

Once completed, the total amount of the bank deposit should match the amount deposited to the bank account.

Post again if you have any other questions. I'm always here to help. Have a good day!