Credit Balance Refund from Credit Card Company

Thanks for joining us here today, @starting2makecents.

I'll share the steps on how you can record your credit card refund in QuickBooks. You'll want to use the Purchases/Charge radio button to show it as payment in your register. Let me guide you how.

1. Go to Banking at the top.
2. Select Enter Credit Card Charges.
3. Tick the Purchases/Charge radio button (see the image below). Then, enter the refund details.
4. Click Save & Close.

Below is the screenshot of how it looks like in your register.

With the above steps, you're able to properly account for the credit card refund. Refer to this article for more information about credit cards: Set up, use, and pay credit card accounts.

In case you need help with other QBDT tasks, feel free to browse this link here to go to our general topics with articles.

Stay in touch if you still have questions or concerns with credit card credits. I'm always here for you. Take care and stay safe.

@ShiellaGraceA- Thank you for taking the time to respond to my message however; I am a bit confused by your example. In the second screenshot you've provided of the register, the big yellow arrow is pointing to the blue square in the PAYMENT column which is BLANK. The $1.15 in your example is actually in the charge column where it doesn't belong. In my example, it is a CREDIT and not a CHARGE as you have recorded it. Additionally, the link that you provided clearly shows exactly what I was attempting to do in the second bullet point where it states "Negative balance - The amount you paid is more than your balance due." However, your example creates the opposite of the this... Finally, you never even addressed the second half of my inquiry, on how to handle the check I received from the credit card company, but that's okay - I figured it out myself and I provided that solution below.

To clarify my initial inquiry, it is important to note that I WAS attempting to use the CREDIT CARD ACCOUNT on the DISTRIBUTION LINE  of the Credit Balance Refund and this is where it all goes wrong with QuickBooks. By using the the credit card account INSTEAD of an EXPENSE ACCOUNT, QuickBooks does not know how to handle the transaction properly and erroneously makes the Credit/Refund appear in the CHARGE column when in fact, it SHOULD place the Credit/Refund in the PAYMENT column.

To enter the check I received from the credit card company as a Credit Balance Refund, I simply created a Purchase/Charge in the credit card account and specified the Cash account on the distribution line. From there I will deposit the check into our real world checking account and record it as TRANSFER from the Cash account in QuickBooks.