I use a third party to process credit cards. A customer was refunded and the third party merchant service company included the refund along with other transactions.
I have tried Refunds and Credit steps offered in QuickBooks help screen but then a payment appears in the checking registry.
But since the refund is part of a day's the merchant service company's deposit into the checking, I need to record the refund on the deposit slip.
Hi there, @Smak1.
You can enter a negative amount for your deposit to denote the customer refund. Let me show you how.
To process a refund, you may follow these steps:
Feel free to leave a comment below if you have any other concerns. I'll be here to assist you.
I followed your steps and it shows correctly on the balance sheet for the item.
What do I do in the Customer's transaction area? There is the original invoice, credit card payment but it does not show the customer was given a refund.
Pleased to hear again from you, @Smak1.
Let me take this opportunity to furnish you with information on how you can issue a credit memo to your customer.
Here's how to create credit memo:
There's no need for us to write a check to denote the refund amount since it's already recorded in your QuickBooks when you made a deposit as adviced by my colleague, @Alessandra_B.
Let's proceed to linking the credit memo to the unapplied refund check. Here's how:
That should do it! Don't hesitate to visit here in the Community if you have other questions about processing customer's refund. I'm always here to help.
You don't have to void the original invoice, Smak1.
I've read your original post. I was wondering why the refund showed as a deposit. A refund shouldn't show as a deposit since this isn't an income transaction. You may want to disregard how it was presented by your third-party merchant service company so you can correctly record the refund in QuickBooks.
In your case, you'll have to create a credit memo, and choose the give a refund option.
First, you'll have to delete the deposit transaction. Here's how:
Then, let's edit the credit memo, and choose the give a refund option. This way, it will not double the customer's credit amount. Here's how:
I've attached screenshots as your reference.
If you have more questions, you can always get back to this thread.