We have QB Desktop pro and recently had two customers request refunds. They had paid via a 3rd party merchant service and those debits have now hit our bank account. We used the QB credit memo process but I don't know how to account for the debits in the QB Banking file to reconcile with the bank statement.
We're unable to enter a negative amount for deposit. As BigRedConsulting shared above, you'll have to create a credit memo and then link it to the refund.
That's a good idea that you create a credit memo to refund your customer. In regards to the account for debit. I can guide you on how to categorize transactions in bank feeds by clicking this link. You can choose what account to use for debit if you're not sure of the appropriate account you can consult your accountant about this.
In this case, create a Credit Memo. As you save it, you'll be asked if you want to create a refund. Once you do, you can include the Refund in a deposit with other payments (if it's included in a batch) or by itself.
Thank you for the information. So to be clear, I can manually add a negative deposit to account for the refund? Does it not somehow need to be linked/connected to the original transaction? I know from looking at the CM info it is linked but worried if I manually enter a negative deposit there is nothing that really connects it to the transaction.
We're unable to enter a negative amount for deposit. As BigRedConsulting shared above, you'll have to create a credit memo and then link it to the refund.
When you enter a credit memo from the open invoice window that is being credited, it will link the credit memo to the invoice for transaction history. When you create the refund from the credit memo window it will link the refund to the credit memo for transaction history and will show up in your undeposited funds as a negative amount showing that customer's info. When the merchant batches the deposit that the refund is deducted from, you just choose the payments and the refund from undeposited funds to make the correct total deposit amount into your bank account.
Hope that helps.
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