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pamphipps70
Level 1

Refunding credit card credits after invoices paid - QB Desktop

We are a petroleum business.  In this case we have a convenient store who gets credit cards daily and they come into our account as credits.  We hold them until they get a load of fuel - then we apply the credits to the fuel and alot of times there are still credits remaining.  We are obligated to give these to the customer.  For instance:

we get credits of $30,000

load of fuel is $25,000

we owe them $5,000

I was told to write a check for the $5,000 and code it accounts receivable - then do a recieve payment and apply the credit to that entry.  I did that and Viola! problem solved.  or so I thought.  I go to make a deposit and the check that I wrote and coded to AR is sitting there to be deposited??  Someone PLEASE tell me how to handle these credits.  I have 7 accounts I need to reconcile because of this and I am almost in tears because we signed contracts for 13 more stores with credit cards!!

6 Comments 6
JaeAnnC
QuickBooks Team

Refunding credit card credits after invoices paid - QB Desktop

Hello there, @pamphipps70. Let's start from scratch and guide you to refund an upfront deposit or retainer in QuickBooks Desktop (QBDT).

 

Since you received credits before performing services to the customers, they are considered upfront deposits or retainers. They are treated as a liability to indicate that they don't belong to you until they're applied to pay for services. That said, you need to set up a current liability account for the retainers you received. 

 

Once done, create an item to accept the retainers and use it when you record the associated transactions. 

 

To issue a refund, follow these steps:

 

  1. Go to Customers and select Create Credit Memos/Refunds.
  2. Select the customer or job.
  3. In the Detail section, select the item you created from the Item dropdown list.
  4. Enter the Amount to be refunded, then Save and Close.
  5. In the Available Credit pop-up, click Give a Refund and select OK.
  6. In the Issue a refund dialog box, select the bank account the upfront deposit or retainer was originally deposited in from the Account dropdown and click OK.
  7. Select Save and Close.

 

For complete step-by-step instructions, please refer to this article: Manage upfront deposits or retainers.

 

Furthermore, you can follow this guide to assist you in reconciling your accounts: Reconcile an account in QuickBooks Desktop.

 

Keep in touch if you have any clarifications about refunding a retainer in QBDT. The Community team is here to help you along the way. Stay safe.

pamphipps70
Level 1

Refunding credit card credits after invoices paid - QB Desktop

We receive credits downloaded from another system by customer. Then we receive invoices by customer. After I receive payments for the invoice and apply credits there are still several credits left. I have to write one check for all of the credits left.  There are credits from different vendors like BP Marathon and Citgo
 
there are currently 200+ credits in the system now. Do I change each credit over to a liability?  I am so confused. The bad thing is I’m an Accountant and I can’t figure this out. My son died tragically a few months ago and I just can’t think straight. HELP 

pamphipps70
Level 1

Refunding credit card credits after invoices paid - QB Desktop

What do I do about the 200+ credits already on the books?  I can’t get these customers accounts to balance 

IrizA
QuickBooks Team

Refunding credit card credits after invoices paid - QB Desktop

I know this hasn't been easy for you, pamphipps70. I'm here to ensure you get the help that you need. 

 

Since you already applied the payments into credits, there's no need for you to set it up as a liability. You can now turn it into a refund by following the steps below: 

 

  1. Go to the Customers menu and then choose Receive Payments.
  2. In the Received from drop-down, click the Customer.
  3. Tap the Discounts and Credits icon.
  4. Select the check you created in the Available Credits section, and then press Done.
  5. You'll be prompted with a message, click Yes to confirm. Afterward, the amount will automatically applied to the invoice.
  6. Select Save & Close.

 

Additionally, you can access this material to see other steps and information regarding credits: Give your customer credit or refund in QuickBooks Desktop for Windows

 

Furthermore, you can also use this as a reference in case you'd like to know how to void or refund customer payments in QuickBooks Desktop: Void or refund customer payments in QuickBooks Desktop.

 

If you have other questions aside from credits, please feel free to leave a comment, and we'll be right here to assist you.

MajorLees
Level 1

Refunding credit card credits after invoices paid - QB Desktop

Hello JanAnneC, we are a convenience store, so the other side of this transaction. The fuel company holds our daily credit cards and either deposits the remaining credit card balance after the fuel is paid or charges us when the credit cards don’t cover the load.   What is the easiest way to apply these deposits to the credit balance in our clearing account?

ChristieAnn
QuickBooks Team

Refunding credit card credits after invoices paid - QB Desktop

Hi there, MajorLees.

 

To apply the deposits you're referring to the credit balance in your clearing account, you need to record Refund/Credit in QuickBooks Desktop. Let me provide the steps to achieve the process smoothly.

 

To begin, I recommend going to the Banking menu and selecting the Enter Credit Card Charges option, from which you can record the transaction.

 

Here's how:

 

  1. Click the Banking menu at the top and select Enter Credit Card Charges.
  2. Choose the Clearing account or credit card account from the Credit Card dropdown list.
  3. Select the Refund/Credit radio button.
  4. Pick a specific vendor from the Purchased From dropdown arrow.
  5. Set the date.
  6. Select the Expenses or Items tab and enter the expenses/items you want to track.
  7. Click Save & Close.

 

Once done, you may refer to this article to see the instructions on how you can pay credit card to reduce the amount you owe: Set up, use, and pay credit card accounts.

 

In case you need steps on how to run different reports in QBDT to give you a snapshot of your business or track your spending entries, you can read this article: Understand reports.

 

If there's anything else you need about managing credit card transactions in QBDT, feel free to comment below. I'm always here to help in any way I can, MajorLees. Have a great rest of your day!

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