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Level 2

Who else takes payment by credit card and uses QBO?

I need to talk with a business that accepts payment & gives refunds by credit card, using QB merchant services.

I am trying to resolve an issue with something that every business does.

I've spent hours on the phone with QB Support ( if ever there was a misnomer, that it).

I'm not going in to it here. If the above applies, message me and I'll tell you my issue.
13 Comments
Level 9

Re: Who else takes payment by credit card and uses QBO?

@howardjennings 

 

An Accountant can help you with the order of accounting operations for making a sale, receiving a credit card payment, refunding a credit card payment, and matching the related transactions.

 

In QuickBooks Online,  a refund receipt is issued for the product and service items that are sold and paid for that need to be refunded.

 

The money flows into your bank account when you receive a payment and make a deposit. When you issue a credit card refund via a refund receipt, the money comes back out of the bank and often times is deducted from the total deposit amount of other customer payments for the day, which you need to match in QBO.

 

Please ask your Accountant for help, they know how to advise you on your QBO accounting. While Intuit is very helpful and does their best to answer QuickBooks Online questions, they are not Accountants and they can only advise you on the functionality of the application itself.

 

 

Level 2

Re: Who else takes payment by credit card and uses QBO?

It the functionality of the app that I'm asking about.

How can you match the deposit (that is reduced because of the refund) with the transactions, when the refund receipt cannot be seen anywhere.

QuickBooks Team

Re: Who else takes payment by credit card and uses QBO?

I'll help you match the deposit, Howardjennings.

 

First, receive the invoice payment normally, then deposit it to the Undeposited Funds. Here's how:

  1. Click the Plus sign (+) icon, then choose Receive Payment.
  2. Choose the customer, then the invoice.
  3. Enter the amount received.
  4. Click the Deposit to drop-down arrow, then choose Undeposited Funds.
  5. Click Save and close.

Next, deposit the payment, then add a line item affecting Accounts Receivable. Here's how:

  1. Click the Plus sign (+) icon, then choose Bank Deposit.
  2. Choose the invoice.
  3. Under Add funds to this deposit, add the customer, then choose Accounts Receivable in the blank field.
  4. Enter the refund as a negative amount.
  5. Click the Account drop-down arrow, then choose the bank account.
  6. Click Save and new

Next, create a credit memo, then link it to the refund. Here's how:

  1. Click the Plus sign (+) icon, then choose Credit Memo.
  2. Fill in the necessary fields, then click Save and close.
  3. If the automatically applied credits feature is turned on, the refund will be linked automatically. But if not, click the Plus sign (+) icon again, then choose Receive Payment
  4. Under Outstanding Transactions, choose the Deposit. Then, under Credits, choose the Credit Memo.
  5. Click Save and close

Lastly, match the deposit to the downloaded transaction. 

 

Feel free to let me know if you have other concerns. Have a nice day! 

Level 2

Re: Who else takes payment by credit card and uses QBO?

Hi, Thanks, but I'm not sure I understand you.

 

1. IS THE BELOW FOR ONE OF THE INVOICES THAT HAVE BEEN PAID THIS IN THIS BATCH.

First, receive the invoice payment normally, then deposit it to the Undeposited Funds. Here's how:

  1. Click the Plus sign (+) icon, then choose Receive Payment.
  2. Choose the customer, then the invoice.
  3. Enter the amount received.
  4. Click the Deposit to drop-down arrow, then choose Undeposited Funds.
  5. Click Save and close.

 

 

2.  IS THE BELOW FOR ONE OF THE INVOICES THAT HAVE BEEN PAID THIS IN THIS BATCH OR THE REFUNDED INVOICE?. THE REFUNDED INVOICE WAS PAID SEVERAL MONTHS AGO AND MARKED AS PAID, THEREFOR IT WON'T APPEAR IT THE LIST (item 2).

Next, deposit the payment, then add a line item affecting Accounts Receivable. Here's how:

  1. Click the Plus sign (+) icon, then choose Bank Deposit.
  2. Choose the invoice.
  3. Under Add funds to this deposit, add the customer, then choose Accounts Receivable in the blank field.
  4. Enter the refund as a negative amount.
  5. Click the Account drop-down arrow, then choose the bank account.
  6. Click Save and new

I've not tried the last bit yet.

Level 9

Re: Who else takes payment by credit card and uses QBO?

@howardjennings 

 

The instructions that were provided to you were general and not specific to your particular issue. 

 

In your case, you have refunded a customer invoice payment that was posted several months ago, which means the original invoice payment is not sitting in an undeposited funds batch.

 

As I previously noted, you will need to create a refund receipt dated the day that you refunded your customers credit card. The "Refund From" account should be undeposited funds.

 

Any other customer invoice payments that you received on the same day that you refunded your customer invoice payment should be "Deposited to" undeposited funds.

 

Then when you make your bank deposit in QBO, you can select the received customer payments and customer refund receipt that match the net bank deposit amount in your bank feed.

Level 2

Re: Who else takes payment by credit card and uses QBO?

Hi

 

"Then when you make your bank deposit in QBO, you can select the received customer payments and customer refund receipt that match the net bank deposit amount in your bank feed."

 

That's exactly what I would expect. But the refund receipt doesn't show, you can't find it. so you can't finish the match.

THAT IS MY PROBLEM. I'm amazed that no one else has asked this question, I have to assume I'm talking the wrong language or something.

Level 9

Re: Who else takes payment by credit card and uses QBO?

1. When you created the refund receipt, did you select "Refund From" account as "Undeposited Funds"?

2. If the answer to # 1 is yes, then did you go to the Plus (+) / Other / Bank Deposit and select the Refund Receipt and other deposits for the same day to make a deposit in QBO that matches the net amount of the bank deposit in your bank feed?

Highlighted
Level 2

Re: Who else takes payment by credit card and uses QBO?

1. When you created the refund receipt, did you select "Refund From" account as "Undeposited Funds"?  YES

 

2. If the answer to # 1 is yes, then did you go to thePlus (+)/Other/Bank Depositand select the Refund Receipt and other deposits for the same day to make a deposit in QBO that matches the net amount of the bank deposit in your bank feed? We created the Refund Receipt from within the client account & from the plus (+). The bank deposit came through on the bank feeds, the payments related to the deposit can be founds, but the refund receipt is not in the list. Is it a bug?

QuickBooks Team

Re: Who else takes payment by credit card and uses QBO?

This is not a bug, Howardjennings.

 

 

When you match a downloaded deposit, you can only match it to open invoices, payments, deposits, sales receipts, journal entries, and transfers. The refund receipt will not show since it will only affect the customer's balance, not the bank balance. 

 

That being said, I provided a suggestion to add the refund on the bank deposit page, then link it to the credit memo. This way, you can match the existing deposit to the downloaded transaction.

 

Feel free to ask if you have more questions. We're just right here. 

Level 10

Re: Who else takes payment by credit card and uses QBO?


@Kristine Mae wrote:

When you match a downloaded deposit, you can only match it to open invoices, payments, deposits, sales receipts, journal entries, and transfers. The refund receipt will not show since it will only affect the customer's balance, not the bank balance. 

 


It seems you are a little confused  You may be talking about matching from Banking>For Review, which is NOT what was suggested

 

If you read the post from @Regina_Lend_A_Hand_Accounting  it says "did you go to thePlus (+)/Other/Bank Depositand select the Refund Receipt and other deposits "

 

In a Bank Deposit type transaction , of course you CAN match to a Refund Receipt, when " you select "Refund From" account as "Undeposited Funds" 

 

Level 2

Re: Who else takes payment by credit card and uses QBO?

I'm sorry, but you can't.

 

Here is a snip showing the refund receipt coming from the 'Undeposited Funds' account. Together with the match window showing the search results for the Account. none found.

What am I doing wrong?

Level 10

Re: Who else takes payment by credit card and uses QBO?


@howardjennings wrote:

I'm sorry, but you can't.

 

Here is a snip showing the refund receipt coming from the 'Undeposited Funds' account. Together with the match window showing the search results for the Account. none found.

What am I doing wrong?


 

The screen shot shows that you are trying to match in Banking>For Review, which is a bad way to create a batch bank deposit. 

 

Follow these steps:

1. Click the "+" button on the top right

2. Click Bank Deposit in the right column

 

 

(What puzzles me is that QBO automatically creates the Bank Deposit for  payments made with QBO Payments. So really the Bank Deposit should already exist. Maybe it's the Refund Receipt that confuses QBO)

 

 

Level 9

Re: Who else takes payment by credit card and uses QBO?

Thanks Malcolm!

 

I believe there is just this one additional step that needs to be taken as previously noted. To further clarify, the bank deposit coming in to the bank feed is separate from creating a bank deposit in QBO from the customer refunds and payments sitting in "undeposited funds".

 

The reason the refund receipt is refunded from "undeposited funds" is so that you can select the Plus (+) / Other/ Bank Deposit and choose the Refund Receipt and any other customer invoice payments that should have also been deposited to "undeposited funds", so that you can make a bank deposit in QBO that matches the net deposit amount that comes in to the bank feed.

 

I recommend double  checking that QuickBooks Payments automatically selected the deposited to account of undeposited funds for other customer invoice payments that are part of the net deposit in the bank feed that needs to be matched. You can manually change the deposited to account if it mistakenly deposited to the bank account directly, then save and close.

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