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Community Explorer **

Undepisted funds

When I have to return the payment to the customer via credit card, I could not  input the negative amount in undeposited funds account through QuickBooks Desktop premier edition 2019. In this case how should I entry into QuickBooks GL in this transaction? I had already  asked  Credit Card Company to pay back to a customer proportionately

QuickBooks Team

Re: Undepisted funds

Hello there, @123146504156949.


You'll have to record a refund in QuickBooks Desktop (QBDT) to track the return of payment to your customer. I can help guide you how.


  1. On the QuickBooks homepage, click on Customers.
  2. Select Create Credit Memos/Refunds.
  3. Select the appropriate customer under the Customer: Job drop-down.
  4. Enter the returned items in the line Item column, add the amount, then select Save & Close.
  5. On the Available Credit window, choose Give a refund.
  6. Enter the necessary details under the Issue a Refund page.
  7. Select OK.

You can also issue a refund check and link the check to the payment. For further details, you can check this article: Record a credit memo or refund in QuickBooks Desktop.


In addition, you can also check our help articles in case you have any other QuickBooks concerns in the future: Help articles for QuickBooks Desktop.


Feel free to add a comment below if you have any other questions about issuing a refund to your customer.

Community Explorer **

Re: Undepisted funds

Thank you for your reply. I tried to go through this process from step 1 to 7 and get into "issue a refund" page. But I was not able to select "Undeposited funds" account because the list by scrolling down is not including that account. I think that, instead of "Issue a refund" screen ,"Credit Card Refund" screen is required to be pop up. However I don't know how I can make it show up in QB? I appreciate your attention. Best regards,
QuickBooks Team

Re: Undepisted funds

Hi there, 123146504156949.


The Undeposited Funds account can't be used when recording a refund in QuickBooks Desktop. You might want to move the amount first into your bank account, then issue a refund afterwards. 


Follow these steps to deposit the amount:


  1. Go to the Banking menu and click Make Deposits
  2. Select the bank in the Deposit To field and enter the date of the transaction.
  3. Enter the name of the customer in the Received From column, then select Undeposited Funds in From Account column.
  4. Enter the amount and any other details.
  5. Click Save and close

After depositing the payment, you can proceed to creating the refund using the steps shared in the previous reply.


Please let me know if you have other questions.