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C-5
Level 1

How to record a cancelled refund sent by e-transfer

A duplicate refund was accidentally sent to a customer by e-transfer. The duplicate e-transfer was cancelled and the funds were returned to our bank account but now the two e-transfer transactions appear on two different bank statements because the transactions occurred in different months. How do I record these transactions in QBO?

Solved
Best answer September 13, 2024

Best Answers
IrizA
QuickBooks Team

How to record a cancelled refund sent by e-transfer

I can help you record the canceled refund sent through e-transfer, C-5.

 

If you used the Refund Receipt transaction in QBO to refund your customer, I can show you how to record these transactions.

 

First, create a Refund Receipt for the original refund, and another one for the duplicated refund. Then, match them to the downloaded bank transactions. Here's how:

 

  1. Go to the +New button, and select Refund Receipt.
  2. Choose the customer from the Customer drop-down list.
  3. Enter the Refund Receipt Date based on the date that appears in your bank statement.
  4. In the Refund From drop-down list, choose the bank account where the funds were taken for the refund.
  5. Choose the appropriate payment method.
  6. Select the Product/Service and review other details.
  7. Hit Save and close.
  8. Repeat steps 1 to 7 for the duplicated refund transaction.
  9. Match the two refund receipt transactions to the corresponding downloaded transactions.

 

Next, create a bank deposit for the amount that was returned to your bank account after the refund was canceled. Here's how:

 

  1. Click again on the +New button, and choose Bank Deposit.
  2. Choose the bank account where the amount was returned from the Account dropdown.
  3. Enter the date based on the date when the amount returned to your bank statement.
  4. Scroll down to the Add funds to this deposit section.
  5. In the Received from column, choose the customer.
  6. Choose Sales Income account from the Account drop-down list. This is to tie it to the canceled refund receipt.
  7. In the Description note that the transaction is a cancelled refund.
  8. Hit Save and close.
  9. Match the entries to the corresponding downloaded transactions.

 

On the other hand, if you used Expense or Check transactions in QBO for refunding your customer, create expense or check transactions for the original and duplicated refunds. In the Category section of the expense or check, select the appropriate sales income account. Then, create a bank deposit same with the steps above choosing the same appropriate sales income account to tie them together.

 

It would also be best to collaborate with your accountant as you go through with the steps to ensure your books are accurate. In case you still need to look for an accountant, we provide a ProAdvisor service where you can connect with experts. Enter your zip code and browse through the options on the Find My Accountant website. In most of the profiles, they offer a free consultation so they can give you some excellent advice.

 

To see if everything checks out, you can run a report in QBO to review these transactions.

 

We're still here to assist you if you have more questions, C-5. Please let us know in the comment section.

View solution in original post

3 Comments 3
IrizA
QuickBooks Team

How to record a cancelled refund sent by e-transfer

I can help you record the canceled refund sent through e-transfer, C-5.

 

If you used the Refund Receipt transaction in QBO to refund your customer, I can show you how to record these transactions.

 

First, create a Refund Receipt for the original refund, and another one for the duplicated refund. Then, match them to the downloaded bank transactions. Here's how:

 

  1. Go to the +New button, and select Refund Receipt.
  2. Choose the customer from the Customer drop-down list.
  3. Enter the Refund Receipt Date based on the date that appears in your bank statement.
  4. In the Refund From drop-down list, choose the bank account where the funds were taken for the refund.
  5. Choose the appropriate payment method.
  6. Select the Product/Service and review other details.
  7. Hit Save and close.
  8. Repeat steps 1 to 7 for the duplicated refund transaction.
  9. Match the two refund receipt transactions to the corresponding downloaded transactions.

 

Next, create a bank deposit for the amount that was returned to your bank account after the refund was canceled. Here's how:

 

  1. Click again on the +New button, and choose Bank Deposit.
  2. Choose the bank account where the amount was returned from the Account dropdown.
  3. Enter the date based on the date when the amount returned to your bank statement.
  4. Scroll down to the Add funds to this deposit section.
  5. In the Received from column, choose the customer.
  6. Choose Sales Income account from the Account drop-down list. This is to tie it to the canceled refund receipt.
  7. In the Description note that the transaction is a cancelled refund.
  8. Hit Save and close.
  9. Match the entries to the corresponding downloaded transactions.

 

On the other hand, if you used Expense or Check transactions in QBO for refunding your customer, create expense or check transactions for the original and duplicated refunds. In the Category section of the expense or check, select the appropriate sales income account. Then, create a bank deposit same with the steps above choosing the same appropriate sales income account to tie them together.

 

It would also be best to collaborate with your accountant as you go through with the steps to ensure your books are accurate. In case you still need to look for an accountant, we provide a ProAdvisor service where you can connect with experts. Enter your zip code and browse through the options on the Find My Accountant website. In most of the profiles, they offer a free consultation so they can give you some excellent advice.

 

To see if everything checks out, you can run a report in QBO to review these transactions.

 

We're still here to assist you if you have more questions, C-5. Please let us know in the comment section.

C-5
Level 1

How to record a cancelled refund sent by e-transfer

Thank you so much for your help IrizA!! 

Aldren18
QuickBooks Team

How to record a cancelled refund sent by e-transfer

I’m glad to hear that, C-5!

 

On behalf of my colleague, IrizA, you're welcome. It's good to know that the information provided has resolved your concern about properly recording duplicate refund e-transfer transactions in QuickBooks Online.

 

Furthermore, I recommend bookmarking these helpful resources about balancing your account and resolving reconciliation problems in QBO:

 

 

This thread is always open if you have other matters to discuss. If you require help recording other transactions in QBO, get back to us in this conversation by clicking the Reply button. My team and I will always be around to lend you a hand any time you need guidance.

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