A customer of mine had been using my credit card to purchase goods for his dropship business.
After he stopped using it, he received some returns from his buyers.
In turn, my credit card received refunds for those returns.
For those refunds I owe him some balance because he had already paid me the original balance for the purchases.
At the same time, this same customer bought from some goods for which he owes me.
Now that I need to receive a payment from him for the goods, I need to deduct those refunds from the first paragraph.
When I receive the payment, how do I split it over two methods of payments: One is the actual payment he sent, while the other one (the remainder) via the refunds I deducted?
I created an account of type bank and called it Clearing. I plan on entering the portion of the payment that came as refunds into it. Is that the right way?
The other part of the payment I enter via the actual way it came in (ACH).
I can help you with recording the transactions in your account, @EBFinancials.
You can create a credit memo for that refund amount. Then, apply that credit when recording payment for a customer’s invoice.
Here's how to create a credit memo for the refund amount:
When you process the customer payment, you can apply the credit you've added.
Follow the steps below:
Refer to this article for more information about other ways on how to handle refunds for your customers: Give your customer a credit or refund in QuickBooks Desktop for Windows.
Once you're done, you can run Customer Balance Summary report in QuickBooks Desktop (QBDT) to check what payments and invoices make up each customer's current outstanding balance. See this article for more information about running reports: Customize reports in QuickBooks Desktop.
I'm always here if you need more help in recording your transactions. Let me know by leaving a reply below. Have a great rest of the day!
@MJoy_D Does your explanation apply if I need to use two different methods for the invoice payment?
Meaning, can I choose part of it to be paid from the customer's credit and the rest from other method (ACH)?
Thanks for getting back here, EBFinancials.
Let me add some additional info about the payments.
With the steps shared by my colleague above, after saving the credit memo, you will be prompted with these options:
If you choose the first and last option, you will not be able to select a different payment method since the amount will only reduce the invoice balance.
To learn more about the process, please check out these articles:
Please reach out to us again if you have more questions or need help with other concerns in your account. We'll be around to assist you. Take care and stay safe.
I think you misunderstood my question.
That was the last invoice of that customer, therefore, creating a credit memo is not the appropriate action.
Receiving the payment is not the issue here, but how to deposit it over two (2) different methods.
Is it possible program-wise?
Thank you for clarifying your concern, @EBFinancials.
QuickBooks Desktop (QBDT) only allows you to deposit payments with a single method. Thus, depositing it into two different methods is currently unavailable.
I know that the option to associate two different methods to the payment upon depositing is beneficial to you and your business. For now, I suggest submitting feedback directly to our product engineers. They may look into this suggestion further and consider adding the option in QBDT. To submit feedback, you can go to the Help menu and select Send Feedback Online. Then, choose Product Suggestions and enter your feedback and then click Submit Feedback.
You can also visit our Customer Feedback page. This will help you track the status of your product request and get the latest updates from our developers. Updates such as how the recent enhancement made to QBDT helps our business owners, like you.
Don't hesitate to leave a comment below if you have other concerns or follow-up questions about depositing payments. I'm always here to help.
I've updated my answer above, @EBFinancials.
Yes, the option to deposit payments into two different methods isn't available on QuickBooks Desktop.
For now, I suggest following the steps I shared above to send feedback. This way, our product engineers will review your suggestion and consider adding the option in future updates.
You can also visit our blog site and be updated with our current news and innovations for QuickBooks.
Come back to this post if you have other concerns with QuickBooks Desktop. The Community team and I are always here to help.