Chargeback combined with Payments

Hello there, LordNorth. I understand what you're going through in this refund and chargeback that is combined by your bank and reflected as one transaction. I'll guide you on how you can record this in QuickBooks Desktop.

Yes, I agree that tracking this as the deposit isn't feasible since we're unable input a negative deposit amount under the Bank Deposit feature in QBDT.

What we can do is manually record this transaction because QuickBooks Desktop doesn't track a refund and chargeback in a single transaction. Therefore, you'll need to create separate entries to track the chargeback and the refund.

We can generate a check affecting Accounts Receivable and then establish an expense fee for the chargeback in QBDT. This action will result in a positive balance on the customer profile.

Here's how:

1. Click Banking.
2. Choose Write Checks.
3. Select the Bank account where the check will be posted.
4. Enter the name of the customer in the Pay to the Order.
5. Type in the total amount of the refund or credit.
6. In the section for Memo, enter the Credit Memo numbers.
7. Go to the Expenses tab.
8. Choose Accounts Receivable in the Account column.
9. Enter the amount of the refund and the name of the customer.
10. Once done, click Save and Close. 

However, if this merged payment and chargeback appears on your downloaded transaction, we need to ignore it, since we'll have to record them separately as I've mentioned earlier.

To eliminate the transaction, navigate to the Transaction List and select the checkbox next to the bank transaction you wish to exclude. Below are the steps outlined for your reference.

1. Access your QuickBooks Desktop company.
2. Go to Banking, and then select Bank Feeds.
3. Select the Bank Feeds Center, and then choose the Bank account.
4. Click the Transaction List to see the transactions.
5. Tick the box beside the transaction that you want to get rid of.
6. In the Batch Actions button, select Ignore.

As always, it'll be best to refer to your bank statement to avoid discrepancies when reconciling your account.

You can also consider getting some advice from your accountant to keep books accurate and ask what expense accounts to use for this specific transaction. Do you want to have one? Visit this article: The ProAdvisor Program.

Let me know if you have other concerns about managing your account in QuickBooks Desktop, we are here to support you. Have a fantastic day. 

Thank you for the reply, but I do not get my bank feeds through QuickBooks.  I was simply looking at my banking account online.

I'm looking for a way to reconcile how my checking account is displayed in QuickBooks with the way that it will appear on my statement.  Right now I have them separate: A deposit for $750 and a payment of $1040.  Those combined will match the line item on my bank statement, but I'm sure that when I go to reconcile it will take me a while to remember what I had done.

I was hoping for a way to get just the single line in quickbooks to read $250 payment.

Is there a way to make that happen?

Thank you.

I appreciate your prompt response and for elaborating on your query, @LordNorth. I've got a way to record a chargeback combined with payments in a single transaction in QuickBooks Desktop (QBDT).

Since you haven't set up bank feeds in QBDT, you can directly record them as a single check transaction. You can use the Accounts/Receivable (A/R) account for the payment amount, and a chargebacks account to show what you have withdrawn from your bank. Let me show you how:

1. Go to the Banking menu and pick Write Checks.
2. Enter the Bank Account, Date, and vendor.
3. Click the Expenses tab.
4. Select the chargebacks account (create one if you don't have one to track these entries) and enter the amount accordingly.
5. On the second line item, choose Accounts Receivable in the Account column.
6. Enter the negative amount and assign it to the correct customer so you can link it with your invoice and mark it as paid.
7. Review the entire check transaction and tap Save & Close.
   
   

Once done, you can open your customer invoice and click Apply Credits to link the payment to it.

Here's a sample screenshot of how it will appear in your customer transactions list and account register.

Furthermore, I recommend seeking assistance from your accountant for the exact accounts to use. They'll also be able to guide you on choosing the proper accounts and other ways to record this better.

You're always welcome to post a reply here if you need anything else to handle customer transactions in QBDT. We're just around to provide the steps. Have a good day ahead!