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.
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:
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:
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!
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?
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?
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:
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!
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 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.