cancel
Showing results for 
Search instead for 
Did you mean: 
Questioner22
Level 2

Refunds paid to customers with manual checks

I need guidance on how to categorize refunds issued to customers by way of checks written manually outside of qbo. What journal entries, if any, need to be recorded for these? The original sales were processed in clover & an invoice was created fir them by Commerce Sync. They were paid in full. The refunds were issued at a later date. 

6 Comments 6
Tori B
QuickBooks Team

Refunds paid to customers with manual checks

Good morning, @Questioner22.

 

Thanks for reaching out to the Community for support. I hope you're enjoying the day so far. I'm happy to lend a hand with your transactions. 

 

If you're looking to know which category the transactions need to go under, and need to know what accounts the Journal Entries need to follow in, then you'll need to reach out to your accountant as they would know the best course of action for your business. If you don't have an accountant, don't sweat. You can find on here in our Resource Center

 

On the other hand, if you're looking to know how to categorize your transactions, or add a Journal Entry into QuickBooks Online, I've included some steps to walk through the process below. 

 

To categorize transactions:

 

  1. Download the latest bank and credit card transactions. 
  2. Once downloaded, review and categorize the transactions. 
    • From the Banking menu, click on the tile for the account you need to review. 
    • Tap on the For Review tab to start your review. 
  3. Hit Add to transactions that do not have matches in QuickBooks. 
    • Click on the transaction to expand the view. 
    • Check out the recommended Category (This is the account QuickBooks wants to categorize into).
    • If needed, change the category and put it in a different account. 
    • Change the vendor or customer if they aren't correct. 
    • Tap Add once everything looks good. 

 

That should do it. To see additional details, take a look at Categorize and match online bank transactions in QuickBooks Online. In case you may need it, you can add new categories into QuickBooks Online. Check out Group your products and services into different categories to see more information about this process. 

 

To add Journal Entries:

 

  1. Click the + New button.
  2. Under OTHER, select Journal entry.
  3. On the first line, choose an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
  4. On the next line, pick the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other (This means the accounts are in balance).
  6. Enter information in the memo section so you know why you made the journal entry.
  7. Hit Save and close.

For more info about entering Journal Entries, take a peak into Create a journal entry in QuickBooks Online.

 

Please let me know if you have further questions or concerns. You can always reach out to the Community any time you need a helping hand. Take care and have a wonderful day ahead! 

Questioner22
Level 2

Refunds paid to customers with manual checks

Since there was an invoice involved and it was paid, I am asking if I need to associate the manual refund check with the paid invoice in any way? Is there anything I have to do to the invoice to show there was a refund? Or is coding the refund check to the refund account all that is necessary?

Questioner22
Level 2

Refunds paid to customers with manual checks

Since there was an invoice involved and it was paid, do I need to associate the manual refund check with the paid invoice in any way? Is there anything I have to do to the invoice to show there was a refund? Or is coding the refund check to the appropriate account all that is necessary?

Catherine_B
QuickBooks Team

Refunds paid to customers with manual checks

Hello there, Questioner22.

 

You can use refund receipts if a customer asks for a refund for an item or service. After you have recorded one, there's no need to link it to an invoice. Let me show you:

 

  1. Click the + New button and click Refund receipt.
  2. Select the customer.
  3. Click the Refund From drop-down, 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. Make sure to fill in the service date, quantity, rate, amount, tax, and other fields accordingly.
  6. Select Save and close.

You can also check this link for more details on how to record a customer refund in QuickBooks Online.

 

Feel free to use these references about handling customer transactions: 

 

Let me know if you have other questions in handling your customer payments. Take care!

Questioner22
Level 2

Refunds paid to customers with manual checks

Does issuing a refund receipt generate entries? If so, what accounts will be affected?

Charies_M
Moderator

Refunds paid to customers with manual checks

Thanks for asking about this, Questioner22.

 

Yes, transactions like Refund receipts generate an entry. To know the accounts affected, you can run a Journal Report for that.

 

Here's how:

  1. Open the Refund Receipt.
  2. Click More and choose Transaction journal.
  3. A Journal report will open and you can see the accounts debited and credited.

Here's an article made handy about modifying columns on the report: Customize and modify columns on reports.

 

You're always welcome to get back to me if you have follow-up questions about the affected entries in the refund receipt. I'm here to answer them for you. Have a good day.

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us