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Join nowI have QB Desktop. We had to refund a customer who purchased off our website so it was all done through Paypal. I have never had to do a credit memo, so how do I record the paypal fee in the credit memo?
The amount refunded was gross $70, a $2.03 fee charged, with a net refund of $67.97, not sure if that info is even helpful.
Thanks for any help as this will be the first and last refund I ever do through Paypal.
I have a few steps on how to record the transactions, AmberLinn.
If you have created an invoice for the purchased item, then make sure to record the full payment which is, $70.
Once done, let's create a bank deposit including the full payment of $70 plus the PayPal fee of $2.03. Please take note to add the bank fee as a negative amount.
Here's are the steps:
Here's a sample screenshot for reference:
Once done, go back to the Customers page and create the Credit Memos/Refunds. I've got this article for the steps: Give your customer a credit or refund in QuickBooks Desktop for Windows.
If there's anything else you need, I'm just a few clicks away. Thanks.
The problem is the original invoice was done, deposit made and the original fee was deduced. But PayPal charges a fee to do a refund as well, bit for some screwed up reason the fee is different. I just dont know how to add that paypal fee onto the credit memo. I'm just taking my issue to a local bookkeeper who uses QB as the several forums I've asked has basically given me the same answer but it still doesn't answer my question. Thanks for trying though.
Hi there, AmberLinn.
To add the PayPal fee to a refund, write a check and select PayPal fee in the line item together with the purchased item. You'll need to enter $2.03(PayPal fee) as a positive amount.
Here's how:
1. Click the Banking menu. Then choose Write Checks.
2. Choose Bank Account.
3. Select the payee name in the Pay to the order of field or whoever the check was issued for.
4. In the Date field, Use the date when you issue the refund.
5. From the Account column drop-down, select the purchased item and the PayPal fee.
6. In the Amount column, enter 67.97 for the purchased item and 2.03 for PayPal fee.
7. Click the Save and Close button.
Please check this article on how to refund, void, or delete a transaction when your QuickBooks Payments account is linked to your company file: Void or refund credit card payments in QuickBooks Desktop.
Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.
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