How do I match a bank deposit with a sales receipt and a sales refund?

You can create two Sales receipt and Refund receipt transactions that correspond to the downloaded bank transaction amount, Ekwendy.

The key here is to ensure that the transactions are posted to the Undeposited Funds (or Payments to deposit) account so that we can combine them when creating a bank deposit record.

If your Square account is not integrated with QuickBooks Online (QBO), please follow these steps to record your sales receipts accurately:

1. Go to +New, then choose Sales Receipt.
2. Select the needed details and the date of the sale.
3. Ensure choosing the Undeposited Funds or "Payments to deposit" account from the Deposit To account dropdown.
4. Enter the other details needed, then Save and close.

Here's how to record the refund refund receipt:

1. Go to +New, and select Refund receipt.
2. Select the corresponding item for the refund.
3. Enter the Refund Receipt Date.
4. Choose Undeposited funds or Payments to deposit account from the "Refund From" dropdown.
5. Enter the rest of the refund details, then Save and close.

Once done, go to +New again and select Bank Deposit, then checkmark the two sales receipts and refund on the Bank deposit page. These three transactions should match the total downloaded bank transactions on your Bank transactions page. Here's a sample image:

If your Square app is integrated with QBO, follow the details in this article on adding the payout to your QuickBooks record: Connect and manage Square transactions in QuickBooks Online.

Please leave us a response if you have other questions or need further assistance.