Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Connect with and learn from others in the QuickBooks Community.
Join nowHi y'all! One of our customers mailed a payment in December. When it hadn't arrived by March, they issued a replacement check and put a stop payment on the one that was lost. Low & behold, USPS delivered the original check last week (nearly 6 months later) and it was included on a bank deposit. So now I have a returned deposit item that is NOT a bounced check from my customer. How do I clear this up in QBO?
Any guidance would be appreciated!
Terri
Solved! Go to Solution.
Thank you for getting back to us, Teesa66.
Let's clear the balance on the customer's account. Writing a check to record the refund reduces your bank's balance and offsets the customer's prepayment.
Before matching it with the bank transaction, you need to link the check to the customer's payment. Make sure to use Accounts Receivable as the category of the check so you can link these transactions.
I'm adding these steps for the solution:
Step 1: Record the refund for your customer
Step 2: Link the refund to the customer's credit or overpayment
After performing these steps, you'll want to go to the Banking page, then proceed to the Categorized tab. Locate the check you've matched and click Undo.
The check is posted back on the For review tab. That's the time you match it with the one you manually enter in QuickBooks. Doing this will prevent duplicate entries.
Also, you'll record a refund to your customer using Check or Expense if:
If they used a credit card, learn how to refund a credit card payment.
Let me know if there are other things you need in handling customer's refund. I'll be right here to help you.
It's good to see you here, @Teesa66,
If you want to record a returned deposit, you can simply write a check. This is to show the amount of the customer's check was deducted from your bank balance.
For the replacement check, you can record it as a journal entry then apply it as a payment towards the original invoice. Here's how:
Once done, receive the payment, using the steps in this article: Record invoice payments in QuickBooks Online
Regarding the process for bounced checks, there are a few ways to handle the accounting. You can use an expense or a journal entry. Follow the method that works best for you.
If you need further help with the process, please let me know in the comment. I'll be right here if you need anything else. Have a good one!
@Jen_D Thanks for the response. I'm still struggling, though. I wrote a check using the customer as the Payee and the bank account as the category. QBO matched this check to the returned deposit item, thus addressing the banking issue. However, since this payment was initially entered as a duplicate payment on the customer's account, the deposit item is still showing incorrectly as an unapplied credit on the Customer's account. How do I clear this from the customer's account?
Thank you for getting back to us, Teesa66.
Let's clear the balance on the customer's account. Writing a check to record the refund reduces your bank's balance and offsets the customer's prepayment.
Before matching it with the bank transaction, you need to link the check to the customer's payment. Make sure to use Accounts Receivable as the category of the check so you can link these transactions.
I'm adding these steps for the solution:
Step 1: Record the refund for your customer
Step 2: Link the refund to the customer's credit or overpayment
After performing these steps, you'll want to go to the Banking page, then proceed to the Categorized tab. Locate the check you've matched and click Undo.
The check is posted back on the For review tab. That's the time you match it with the one you manually enter in QuickBooks. Doing this will prevent duplicate entries.
Also, you'll record a refund to your customer using Check or Expense if:
If they used a credit card, learn how to refund a credit card payment.
Let me know if there are other things you need in handling customer's refund. I'll be right here to help you.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.