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Natalie227
Level 1

How to document a credit card payment correction

I incorrectly made a credit card payment to Chase for $16,066.90. The $16,066.90 came out of my Wells Fargo bank account. Once it posted I contacted chase and let them know of the error. I actually meant to make the payment for the actual statement balance of $9388.12. I contacted Chase and they reversed the payment of $16,066.90 to my chase account and made the correct payment of $9388.12. They then refunded my Wells Fargo account the difference of $6,678.78. 

I am in need of assistance in correctly documenting the reversal of the $16,066.90 and also the new payment of $9,388.12 while still recognizing the initial payment that was made from Wells Fargo.

 

Step by step advice would be appreciated. 

Thank you in advance!

4 Comments 4
Mark_R
QuickBooks Team

How to document a credit card payment correction

I've got your back on recording credit card payment and refund, @Natalie227.

 

You can enter a credit card credit to document the reversal of the $16,066.90. Here's how:

 

  1. Sign in to your QuickBooks Online (QBO) account.
  2. Click + New button, then select Credit card credit.
  3. Choose the vendor from the drop-down.
  4. In the Bank/Credit account field, select the credit card account you received the refund.
  5. Enter the necessary information and the amount.
  6. Click Save and close.

 

On the other hand, you'll need to create a Pay down credit card or write a check to record your new payment of $9,388.12. Please follow the steps below:

 

  1. Click the + New button, then select Pay down credit card.
  2. Select the credit card you made the payment to.
  3. Enter the payment amount and the date.
  4. Choose the bank account you paid the credit card with.
  5. Enter the necessary information. Then, click Save and close.

 

I'm adding this article for more details: Record your payments to credit cards.

 

You might also want to learn about reconciling accounts in QuickBooks Online. This will help you ensure your accounts always match your bank statements.

 

Please touch base with me here for all of your QuickBooks needs, especially for credit card payments. I'm always happy to help, @Natalie227.

sooverit2
Level 4

How to document a credit card payment correction

I'm having the same issue - My client made a credit card payment, then reversed it a month later.

SO just voiding the payment is incorrect, because I need to reconcile to the Credit Card Statement and the transactions are showing up in two different months/statements.

 

This doesn't work.

 

A Credit Card Credit will show up as a payment - And you can't make it a negative.

So this creates a duplicate payment and no payment reversal.

Help?

 

 

FateCandylaneT
QuickBooks Team

How to document a credit card payment correction

Thanks for joining in on this thread, sooverit2. I'll share insights about credit card payments and refunds.

 

Beforehand, may I ask if your client has reversed credit card payments within or outside QuickBooks? Any additional information is much appreciated, as this will help us identify further and provide a detailed solution to ensure these statements are reconciled accurately.

 

If these payments are reversed outside QuickBooks, let's enter a credit card credit to ensure a refund of the reversal amount.

 

Here's how:

 

  1. In your QuickBooks Online (QBO) account, click the + New icon and select Credit card credit.
  2. Find the appropriate account from the Bank/Credit Account drop-down box.
  3. Under the Category details, choose the account you've received the refund.
  4. Enter the other necessary information and amount.
  5. Select Save and close.

 

Moreover, you can check out this article to guide you further in reconciling your accounts: Reconcile an account in QuickBooks Online.

 

Let us know in the comment below if you require additional assistance reconciling credit card statements. We'll be happy to help you further. Take care!

sooverit2
Level 4

How to document a credit card payment correction

This is outside of QB (Payments).

When you enter a credit card credit, it creates a credit card "payment" - not a reversal of the payment.

And you can't create a negative credit. (I tried.)

I found a work around - It's not great, but this is a 2022 transaction and I don't think QBO will have a fix soon enough.

My work around is by creating a transfer from the checking account to the credit card you mimic a payment reversal.

There should be a "correct" way to do this - Possibly by having the ability to reverse a payment by clicking a button or creating a negative credit or payment.

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