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Level 1

refund and cash back from credit card

My business checking and credit card account are both at the same bank. The credit card account had a negative balance of $150,  among which $100 was from overpaid payment from the checking and $50 from cash back award from the credit card. My bank did one single transfer of $150 from the credit card account to the business checking account. So the banking feed for my quickbooks online account has a $150 deposit for checking and $150 credit card charge for the credit card. In this situation, what's the proper way to record this transaction to reflect $100 credit card balance refund and the $50 cash back reward income? Thanks a lot for help.  

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Best answer December 10, 2019

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QuickBooks Team

refund and cash back from credit card

Hi @hello9,

 

Yes, you can use the Credit card credit to record the cashback rewards and the refund. For proper posting of the $100 overpayment refund, I'd suggest you consult an accountant. 

 

Once everything is recorded properly, follow the steps provided by my peer @MaryLandT about transferring funds between accounts. 

 

Feel free to message me here if you have more questions. We're always delighted to support you in any way we can. 

View solution in original post

5 Comments 5
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QuickBooks Team

refund and cash back from credit card

Hi there, hello9,

 

Let me guide you through recording the refund and cashback from the credit card (CC) account.

 

You need to use the Transfer feature in QuickBooks to move funds from CC to the checking account. Then, match it with the deposit on the bank feeds. This will let QuickBooks record one deposit to the checking account.

 

Below are the steps you can follow on how to accomplish this:

 

Create a bank transfer

  1. Click the + New icon from the left navigation bar.
  2. Choose Transfer under Other.
    banktransfer.PNG
  3. Enter the credit card from the Transfer Funds From field.
  4. Enter the checking account in the Transfer Funds To field.
  5. Enter the amount in the Transfer Amounts field.
  6. Enter the date.
  7. Add a Memo.
  8. Click Save and close.
    banktransfer1.PNG

Match the deposit to the transfer transaction

  1. Go to Banking from the left navigation bar.
  2. Choose the checking account from the tile.
  3. Locate and mark the deposit, then click Match.
    banktransfer2.PNG

I've added this article to learn more about matching bank statements: Assign, categorize, edit, and add your downloaded banking transactions. It provides instructions and detailed steps for your guidance.

 

If there's anything else you need, please leave a comment below. I'd be happy to help you out.

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Level 1

refund and cash back from credit card

Hi @MaryLandT,

 

Thanks for your reply. You instruction covers the transfer from credit card account to checking. However, since the single transfer amount of $150 actually contains two parts: $100 of credit balance refund and $50 of cash back award, which belong to two different categories. The question remaining is how to map the $150 into $100 (credit balance refund) and $50 (cash back reward) under their proper categories.  

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QuickBooks Team

refund and cash back from credit card

Thanks for clarifying your concern, @hello9. You can use the Credit card credit to enter the transaction separately. Here's how to record the $50 cashback and $100 as a refund from your credit card overpayment:

 

  1. Click the + New menu.
  2. Select Credit card credit.
  3. Choose the appropriate account in the Bank/Credit Account drop-down list.
  4. Under the Category details, select the account for your cashback rewards/refund under income account. If you don't have an account yet to track your cashback rewards or refunds, you'll need to create one
  5. Enter the necessary information.
  6. Click Save and close.

 

For future reference, you can match the transaction with your bank feeds in QuickBooks.

 

You can also refer to this help article: How can I record a cash back to my credit card account?. It guides you through recording the cash back rewards or a refund amount of the purchases made on your credit card.

 

Let me know how it goes, @hello9. We're always here to help if you need further assistance. 

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Level 1

refund and cash back from credit card

Hi @katherinejoyceO , that would work, thanks! Just make sure I understand correctly, I can use"new credit card credit" for both $100 and $50 ? I can use the income account "Back Award" for $50, but which category should I use for refund of $100? It's not related to any particular product return or service cancellation, it's from my overpayment to the credit card.   Also, please note that $150 is a charge on the credit card, and a deposit to the checking. By using  credit card credit, how to record the $150 charge on the credit card?

Highlighted
QuickBooks Team

refund and cash back from credit card

Hi @hello9,

 

Yes, you can use the Credit card credit to record the cashback rewards and the refund. For proper posting of the $100 overpayment refund, I'd suggest you consult an accountant. 

 

Once everything is recorded properly, follow the steps provided by my peer @MaryLandT about transferring funds between accounts. 

 

Feel free to message me here if you have more questions. We're always delighted to support you in any way we can. 

View solution in original post

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