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AMP01
Level 2

Matching a deposit that nets a refund and charges to the appropriate documents

if a 3rd party payment provider like Stripe deposit comes through the bank feed with a credit and charges netted together, how to I apply a refund receipt?  How do I match a bank deposit amount that is the net of a refund and charges to the appropriate documents?

Solved
Best answer February 27, 2021

Best Answers
IamjuViel
QuickBooks Team

Matching a deposit that nets a refund and charges to the appropriate documents

Greetings, @AMP01.

 

You can create a refund receipt and use Undeposited Funds in the Deposit To field. Then, you can create a bank deposit to include the refund receipt and the charges. I can guide you in doing so.

 

Here's how to create a refund receipt:

  1. Go to the New (+) icon.
  2. Choose Refund Receipt.
  3. Select the Customer ▼ dropdown, then select the customer you want to refund.
  4. From the Refund From ▼ dropdown, select Undeposited Funds.
  5. Add all products or services the customer returned in the Product or service column.
  6. Make sure to fill the quantity, rate, amount, tax, and other fields accordingly.
  7. Click Save and close

Once completed, you can now make a bank deposit. Here's how:

  1. Select + New.
  2. Choose Bank Deposit.
  3. From the Account ▼ dropdown, choose the account where the money was deposited.
  4. Mark the refund receipt you've initially created.
  5. Go to the Add fund to this deposit section.
  6. Enter the deposit and the charges. 
  7. Click the Save and Close button.

Now, you can match it with your download stripe deposit. 

 

Lastly, I'd recommend consulting with an accountant so you'd be guided in accurately recording your income and expenses.

 

Keep us posted if you have other questions or concerns. I'm always here to help.

View solution in original post

14 Comments 14
IamjuViel
QuickBooks Team

Matching a deposit that nets a refund and charges to the appropriate documents

Greetings, @AMP01.

 

You can create a refund receipt and use Undeposited Funds in the Deposit To field. Then, you can create a bank deposit to include the refund receipt and the charges. I can guide you in doing so.

 

Here's how to create a refund receipt:

  1. Go to the New (+) icon.
  2. Choose Refund Receipt.
  3. Select the Customer ▼ dropdown, then select the customer you want to refund.
  4. From the Refund From ▼ dropdown, select Undeposited Funds.
  5. Add all products or services the customer returned in the Product or service column.
  6. Make sure to fill the quantity, rate, amount, tax, and other fields accordingly.
  7. Click Save and close

Once completed, you can now make a bank deposit. Here's how:

  1. Select + New.
  2. Choose Bank Deposit.
  3. From the Account ▼ dropdown, choose the account where the money was deposited.
  4. Mark the refund receipt you've initially created.
  5. Go to the Add fund to this deposit section.
  6. Enter the deposit and the charges. 
  7. Click the Save and Close button.

Now, you can match it with your download stripe deposit. 

 

Lastly, I'd recommend consulting with an accountant so you'd be guided in accurately recording your income and expenses.

 

Keep us posted if you have other questions or concerns. I'm always here to help.

Little jo
Level 1

Matching a deposit that nets a refund and charges to the appropriate documents

Hi

 

I can see how this works if the refund is part of a larger transaction where there are payments as well as refunds. However, what I can't see how to do is when I have a stripe refund where money is taken from my bank account.

I tried doing as above but Bank deposit will not let you save with a minus figure.

I'm fine with a normal refund but because of the stripe fees I just can not work out how to record this and match the refund going out of my bank to the refund in my customers account and the stripe fees.

 

Help would be greatly appreciated

katherinejoyceO
QuickBooks Team

Matching a deposit that nets a refund and charges to the appropriate documents

Thanks for sharing your concern in this conversation, @Little jo. In your case, we can create a refund receipt to record a returned item or service. 

 

Here's how: 

 

  1. Click the + New menu, then select Refund receipt or Give refund.
  2. Select the customer you want to refund in the Customer dropdown.
  3. Click the Refund From dropdown arrow, then select the bank you deposited the payment for the invoice to.
  4. Add all products or services the customer returned in the PRODUCT/SERVICE column.
  5. Enter the service date, quantity, rate, amount, tax, and other fields accordingly, then select Save and close.

 

Once done, use the Resolve Difference when matching the transactions with your bank to fix the discrepancies. Here's how: 

 

  1. Go to the Banking page, then select the For Review tab.
  2. Click the transaction to open it, then select the Find other records or Find match button to open the Match transactions window.
  3. By default, the Match transactions window lists All transactions within the date range, but you can narrow the results.
  4. Click on the Show drop-down menu to specify the type of transaction you're looking for. Ensure that date is correct. 
  5. Locate additional matched transactions if the amounts are different. Or select Resolve Difference to open the Add resolving transactions fields to add the Category and Amount (and, optionally, Payee) of a resolving transaction until the difference equals zero.
  6. If necessary, you can use the Add new transaction button to add multiple resolving transactions.
  7. Click Save.

 

You can also review your work in the Categorized and Reviewed tabs to confirm everything's entered correctly. 

 

For future reference, read through this article and learn about matching your QuickBooks transactions with your actual bank statement: Reconcile workflow in QuickBooks.

 

Feel free to message us again if you have additional concerns about matching your transactions. I'll be there to help. 

 

 

 

Little jo
Level 1

Matching a deposit that nets a refund and charges to the appropriate documents

Hi @katherinejoyceO 

 

Thank you so much for the reply. I did actually have a eureka moment after I posted the question (after several hours of pulling my hair out!) And worked out this was how to do it.

 

However, I have now realised that this will not work for what I am trying to achieve. Raising a refund in this way will reduce the revenue received from the category that I have raised the refund against. Whereas our customers pay for services in advance which are not invoiced until they have received the service and the payments are just added to their account as bank deposits leaving the account in credit. It is therefore these prepayment that I wish to return to the customer (when they decide not to go ahead with the service and cancel). Therefore I am not returning any good/ services only returning a bank deposit to the customer. However, I still need to be able to record the returned stripe fund too.

 

Any help with this will be much appreciated. (This would be much easier if we could just do a minus bank deposit.

 

Many thanks in advance

MichelleBh
Moderator

Matching a deposit that nets a refund and charges to the appropriate documents

We're happy to help, @Little jo.

 

The information you provided in your response will help us address the issue accordingly. I have here an easy way to return the client's bank deposit into QuickBooks Online (QBO). It's my pleasure to guide you through the detailed steps.

 

In QuickBooks, you can create a check to return your customer's bank deposit. This will settle the payment. Let me show you how: 

 

  1. Go to the+New tab in the upper left pane.
  2. Select Check, then pick the customer name in the Payee drop-down. 
  3. Under the Item details section, choose the appropriate products/services. 
  4. Enter the exact Amount in the box. 
  5. Tap Save and close

 

For more details, check out this link: Create and record checks in QuickBooks Online.

 

After that, run the Transaction List by Customer report to see the balance. Just go to the Reports tab, then click the exact name under the Sales and customers section. See the sample screenshots below for your reference. 

 

To know more about customization, see this link: Customize reports in QBO

 

Once done, you can match this entry to your bank transactions. You can use this article for reference in matching and categorizing downloaded events in QBO.

 

Additionally, discover these articles below to know when to use checks and how to void this in your account:

 

 

In case you have any other clarifications, you can always tag me in your reply. I’m only a post away from you. Take care, @Little jo.

Little jo
Level 1

Matching a deposit that nets a refund and charges to the appropriate documents

Thank you for your advice @MichelleBh 


However, as stated I do not want to return any services or products, only a payment on account. I didn't think that the refund receipt would let me save without a category but today it has.

RyanMalone
Level 2

Matching a deposit that nets a refund and charges to the appropriate documents

I have a question about this. When entering the total for the transaction fees and the sales into this bank deposit it's asking for VAT. Should I be setting these as no VAT as it's a payment and having them inc vat would duplicate the VAT that's already in against the sales receipts? Or should they have the applicable VAT included? 

FateCandylaneT
QuickBooks Team

Matching a deposit that nets a refund and charges to the appropriate documents

Thanks for posting here in the Community Space, RyanMalone. I'll share some details to further guide you about VAT codes in QuickBooks Online (QBO).

 

For the majority of products and services, the standard VAT rate in the UK is now 20%. Unless they fall under a different category, all goods and services must be subject to the ordinary VAT rate from VAT-registered businesses. 

 

To know more about the detailed information, you can refer to this article: VAT codes in QuickBooks Online: A complete guide. It contains accurate details to learn more about its codes and rates.

 

Additionally, to provide you with proper guidance, I recommend consulting your accountant or professional tax advisor to classify the correct taxes.

 

For any further concerns, you can also reach out to this forum for references.

 

Moreover, you can check out this article if you'll want to submit VAT returns electronically using the MTD-compliant software: Submit a VAT return to HMRC using MTD in QuickBooks Online. It also includes some tips on recording VAT payments and changing the filing status of a VAT return.

 

If you have additional questions, you can always leave a reply below. We'd be glad to assist you. Take care!

RyanMalone
Level 2

Matching a deposit that nets a refund and charges to the appropriate documents

I have a few questions on this: 

 

  • In the add matching transactions, for the transaction fees, should this already have been entered elsewhere as an expense? Or should this be the only place it is entered?
  • Should the sales that are entered with the bank deposit have the vat set or should it be no vat (as the sales and the vat will already be accounted for from within the invoices/sales receipts previously entered that make up the total)?

    I'm just concerned this way things will be entered twice (sales) or not accounted for at all (expenses).
RyanMalone
Level 2

Matching a deposit that nets a refund and charges to the appropriate documents

This is very frustrating, it keeps putting my reply in the wrong section. My questions are related to the main solution that was posted.

GeorgiaC
QuickBooks Team

Matching a deposit that nets a refund and charges to the appropriate documents

Hi RyanMalone, thanks for joining this thread - any fees/charges would only be included on the bank deposit. The refund receipt should include the same sales product/service and VAT code as used on the original transaction to effectively 'cancel' this (i.e. create a net of 0.00 on the VAT return if the full amount is being refunded). 

RyanMalone
Level 2

Matching a deposit that nets a refund and charges to the appropriate documents

I found a solution if/when using Sales Receipts and not Invoices. Rather than the deposit account that the sales receipts go in to, they should also go to undeposited funds, then these should be matched, along with refunds up the top, with the transaction fees added at the bottom. 

MaryLandT
Moderator

Matching a deposit that nets a refund and charges to the appropriate documents

I'm glad to see you in this thread sharing a solution about matching a deposit to a sales receipt, RyanMalone.

 

You can always come back and share or comment on a solution to any post here in the Community forum. This will surely help other customers who are also experiencing the same issues.

 

If you also have a question, don't hesitate to create a new post. We're always here to help you. Thank you and stay safe!

BeaconBooks
Level 1

Matching a deposit that nets a refund and charges to the appropriate documents

This should be easier.  I have several sales of product through Squarespace that are grouped with a refund.  For instance, I have 2 sales; $165.74 & 119.13, and the customers show up in QB as they should.  Then I have a refund of $20.40.  I do all of the above that is suggested in your answer, however, that means I have to delete the actual sales receipts that lists items sold for the $165.74 and the $119.13 because those amounts are now in the system twice!  When I go to add deposit, I want to select my 2 sales for these customers, not enter a generic sales total. Is there no easy way to add a refund to the amount that shows in the bank feed?

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