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Level 3

Recording a Refund of payment made with Square

I use QuickBooks for MAC 2016.

 

A customer paid me a $135 deposit via Square.  I recorded that with a Sales Receipt, chose Group with Undeposited Funds, then made the deposit minus the $4.22 fee that Square charges (which I put into a "CC Fee" Account that I made in QuickBooks), and the $130.78 got deposited into my checking account.

 

But now the customer backed out and I gave him a refund thru Square.  Square will refund me the full $130.78.  So how do I record this in Quickbooks?

11 Comments
QuickBooks Team

Re: Recording a Refund of payment made with Square

Hi there, Electrician,

 

Thanks for sharing the steps on how you record the payment in QuickBooks.

 

QuickBooks lets you issue a refund to record the money you return to your customer. What you need to do is create a credit memo first, then write a check. Here's how:

 

Create a credit memo

  1. Select Customers, then Create Credit Memos/Refunds.
  2. Enter the info for the credit memo or refund, then click Save.

To write a refund check:

  1. Open the credit memo, then click the Refund icon.
  2. Make sure all info on the check is right and use Accounts Receivable for the account.
  3. Click Save.
  4. Go to Customers, then select Receive Payments to link the check to the payment.
  5. Select your customer to see the amount of the credit in the Existing Credits field and the refund check.
  6. Click Apply Existing Credits.
  7. Enter the amount in the Payment column, then click Save.

Once you receive the refund from Square, you can then deposit it to the right bank account.

 

Should you need anything else, please let me know and I'd be glad to help you out.

Level 3

Re: Recording a Refund of payment made with Square

Which amount do I enter, the $135 that I entered into the original Sales Receipt, or the $130.78 that I received int he checking account after Square took their fee?

 

And how do I get that $4.22 removed from the CC Fee account that I made in QuickBooks to account for the fees that Square charges?

 

Also, your images and a few things you explained are different than what I have in QuickBooks for Mac.

Anonymous
Not applicable

Re: Recording a Refund of payment made with Square

I appreciate you getting back in the thread, @Electrician.

 

Let me help add some details about recording the refund.

 

You'll need to check with Square if they will refund you with the transaction fee as well. If they will, you can enter the $135 amount as a refund on the credit memo/refund transaction. Doing so will also remove the $4.22 on your CC fee account.

 

However, if they won't refund the $4.22, you'll only have to refund the $130.78 amount. The remaining amount will be posted as an expense. 

 

Additionally, my colleague @MaryLandT updated her steps on how to record this in QuickBooks Mac. 

 

Let me know if you have other questions about recording your refund. I want to help however I can. 

Level 3

Re: Recording a Refund of payment made with Square

Square takes the fee off the top, then deposits the leftover amount, in this case $130.78.  Square will refund me the full $130.78.

 

"Doing so will also remove the $4.22 on your CC fee account."

 

If I do as you said and enter $135 as the amount, how would that put $4.22 back into my CC fee account?  Wouldn't I have to do something specifying the CC fee account like I originally did?  I attached a screenshot showing what I did to enter the Square payment in the opening post.

 

I tried to do it as instructed, but it shows $135 coming out of my checking account, which is the wrong amount.  It also did not reverse the fee put into the CC fee expense account.

 

Level 3

Re: Recording a Refund of payment made with Square

The way that I enter the Square payment, which I was told here while back, does this:

 

-It shows $135 in Job Income.  (Because that is what my Sales Receipt says, based off of the outside invoice that I wrote up)

-It puts $130.78 into my business checking account.  (Because that is what Square actually sends me)

-It puts $4.22 into the CC Fee expense account.  (This shows the difference between my Job Income and the actual money I received)

 

QuickBooks Team

Re: Recording a Refund of payment made with Square

Hello Electrician,

 

You did right on recording the refund for $130.78. To offset the $4.22 fee on your CC Fee expense account, you'll want to deposit it in a positive amount.

 

We are always around if you need more help related to this concern. Thanks.

Level 3

Re: Recording a Refund of payment made with Square

I recorded the refund as $135 as instructed.

 

How do I deposit the CC fee?  I don't understand.

QuickBooks Team

Re: Recording a Refund of payment made with Square

You'll have to record the CC fee as a positive amount, Electrician.

 

Based on your screenshot, you've entered the fee as negative. Let's go ahead and change it to positive (4.22) so it will offset the amount on the CC expense account.

 

I'll share an article on how to record a credit memo or refund in QuickBooks Desktop for Mac so you'll have a future reference. 

 

If you have more questions, please shoot a comment below. 

Level 3

Re: Recording a Refund of payment made with Square

The screenshot that I posted was of the original entry. Not of the refund.

 

No one here has explain to me how to enter that $4.22 in the refund. That is what I have been asking

QuickBooks Team

Re: Recording a Refund of payment made with Square

Thanks for the clarification, Electrician.

 

Add it as a deposit, use the CC expense account, then enter it as a positive amount. 

 

You may also want to call our customer care support so an agent can better guide you with the steps. Here's how:

  1. Visit our website.
  2. Select QuickBooks Mac Desktop.
  3. Select Using QuickBooks for Mac, then click Get Phone Number

You can always get back to us if you have more questions. 

Level 3

Re: Recording a Refund of payment made with Square

Where is SkinnyRaven?  He would know how to do this :-(

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