Customer was refunded a security deposit, bank matched transaction, refund was returned by Stripe and a second refund was processed

christinab2001 · ‎March 13, 2023

I am seeking the correct bookkeeping process to post a returned refund for a Customer. I want an outline of the correct steps to post the returned funds to the Customer Account.

#1-4 outlines what HAS BEEN done already in QBO:

1. Sales Receipt posted to Customer account for payment via Stripe and deposited to a bank account. Deposit matched to bank feed. This Sales Receipt included a security deposit that was posted to the liability account.

2. Customer Refund was processed for the Customer security deposit refund; posted to a liability account. Refund matched to bank feed.

3. Security Deposit Refund funds were returned to the bank account via Stripe. Deposit matched to bank feed. [Initially, this refund was deposited via the "Add funds to this deposit" section of the Bank Deposit screen. This does not show up under the Customer transaction list. Nor does it appear in the balance sheet security deposit liability account report to confirm the liability has been cleared.]

4. Customer was issued a second Refund for the security deposit. This posted to the liability account, also. Refund was matched to bank feed.

My problem is in brackets [ ] above in #3. I need to know how to post the returned Refund, as listed in #3 above, that is not done via the "Add funds to this deposit" section. I don't want a Journal Entry, either.

1. I need a way to see this returned refund with bank matched deposit on the Customer transaction list.

2. I also need it to show up on the balance sheet report under the security deposit liability section so the account shows as $0, not $-500 as it currently does. I think there should be a way to post a transaction to the Customer, credit the security deposit refund liability account to bring that back to $0 ($-500 refunded + $500 returned refund = $0), and then process the second successful refund that will post to the security deposit refund liability account which will zero out the parent account of Security Deposits.

I don't know what transaction(s) are/would be the correct ones to allow for the bank-matched transactions to stay on the books, post new transactions that won't affect anything other than the liability account, and, most importantly, post to the Customer transaction list AND to the balance sheet liability section for this property which is tracked via classes.

I tried to think about it via a similar process, Customer instead of Vendor, as outlined in the QBO Community Solved issue "Bill Pay voided an uncashed check" (https://quickbooks.intuit.com/learn-support/en-us/banking/bill-pay-voided-an-uncashed-check/01/71712...), but couldn't figure out what the process would be for a Customer and the corresponding Customer transactions.

Please let me know if any further details are needed to understand my dilemma and what the solution I need would be. Again, I would appreciate an outline of steps, similar to what FritzF Moderator on November 25, 2020 @ 3:53PM posted in the QBO article referenced above. Thank you.

AbegailS_ · ‎March 13, 2023

Hi there, Christina.

I'd be delighted to guide you in recording security deposits.

Since you use the liability account for your security deposit you can process a refund by issuing check for the portion to be refunded.

Here's how:

Select + New.
Under Vendors/Vendors, select Check.
Enter the check information.
In the Account details section, select the liability account you use for security deposits from the Account column dropdown list.
Select Save and close.

To learn more about the process, here's an article that can guide you on how to return part of the deposit: Refund a security deposit.

If you're unsure with the steps that I've mentioned above, you can also consult your accountant. This way, they can guide you on recording your deposits in QBO.

Additionally, I'll be also leaving these handy articles for future reference:

Please let us know if you need further assistance with security deposits. The Community is available 24/7 to help you. Take care and have a good one.

christinab2001 · ‎March 14, 2023

Abegail_S, thank you for your reply. However, that was not the information I was looking for.

Looking for someone who can read my post and provide the details I need to process a returned Customer refund to the customer account. Please see the details of my original post.

ChristineJoieR · ‎March 14, 2023

Here's what you're looking for, @christinab2001. I'll demonstrate how to distribute the cash that your client has reimbursed in QuickBooks Online.

We can use the Refund Credit instead of Vendor Credit so this will post your customer's account. Please follow me, and I'll show you how to do it:

Click + New, then Refund receipt.
Select the customer you want to refund from the Customer dropdown.
Enter the details in the fields using the same information as the previous sales receipt. To credit back their credit card, in the Payment method, Choose Credit card. To credit back their bank account, in Payment method, select Bank.
In the Refund from, choose a payment method and account you wish to refund to the customer.
Select Save and close.

Moreover, you can also check this page for the steps to create a refund in a different scenario: Record a customer refund in QuickBooks Online.

Do you want to run a report by class? Feel free to visit this article for the detailed instruction: Run reports by class in QuickBooks Online.

Should you have other concerns with your customer and vendor transactions? You can share this again in this thread.

christinab2001 · ‎March 15, 2023

The customer refund is complete. I know how to complete this in QBO.

I need to know how to post a transaction that shows that the refund paid to our customer was RETURNED to the company's bank account. I need to credit the company books so that the returned refund money shows on the customer account but not as additional income. Then a second refund was issued to refund the money to the customer, which was successful.

Topics

Training

Community

Resources

Customer was refunded a security deposit, bank matched transaction, refund was returned by Stripe and a second refund was processed