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Level 1

Creating negative entries in QB

We sell items on Amazon and recently had an item returned.  Between the amount of the refund to the customer and the amount of commission/fees returned to us (which is higher than the amount of the return), the final amount for this transaction is a negative amount.  QB will not let me have a negative entry.  What is the correct way to enter this transaction?

4 Comments
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Moderator

Creating negative entries in QB

Hello there, @WH1.

 

Thank you for posting in the Community. I'd be happy to help you record this transaction in QuickBooks correctly.

 

To avoid creating a negative amount, you can enter a Refund Receipt to record the reimbursement to the customer through cash, check or credit card. This way it'll not affect the customer's balance, only the bank balance.

 

To start, you need to record the customer's payment as a sales receipt.

 

Here's how: 

  1. At the top right, click the Plus icon.
  2. Select Sales Receipt.
  3. At the top left, select the name of the customer.
  4. Enter all the sales information. 
  5. From the Deposit to drop-down, select Undeposited Funds.
  6. Click Save and close.

After that, create a deposit then add the amount of the commission/fees. 

 

Here's how:

  1. At the top right, click the Plus icon.
  2. Select Bank Deposit.
  3. From the Account drop-down, select the bank account to which to deposit the funds.
  4. In the Select the payments included in this deposit section, select the transaction. 
  5. In the Add funds to this deposit table, enter information about the commission/fees.
  • In the RECEIVED FROM column, select the vendor.
  • In the ACCOUNT column, select an expense account.
  • In the AMOUNT column, enter the negative amount of the commission/fees.
  • If needed, you can enter other information.

        6. Click Save and close

 

Finally, enter a Refund Receipt to record the reimbursement to the customer.

 

Here's how to record the transaction:

  1. At the top right, click the Plus icon.
  2. Select Refund Receipt.
  3. Select the same product/service that you are refunding, and the exact amount of the refund.
  4. Enter the information.
  5. Select Save and close.

The following article contains additional information about this: Apply a credit memo, credit or refund to a customer.

 

If you need to reach out for more help, our phone agents will be able to help you get to a resolution quickly.

 

That should get you on your way to creating the refund.

 

Feel free to drop a comment below if you have any other questions, I'm just a post away. I'll be happy to help you out.  

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Level 1

Creating negative entries in QB

MaryGraceS,

 

Thank you for your answer, I do have another question.  We use SellerZen to import our Amazon transactions.  The transactions are imported as an Invoice, which includes the fees that Amazon charges.  If I create a Sales Receipt for the customer's payment, per your recommendation, will I be duplicating the entry?  Only part of the original order is being returned, how would I account for the items that didn't get returned if I created a Sales Receipt?

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Level 1

Creating negative entries in QB

MaryGraceS,

 

Thank you for your reply.  We use SellerZen to import all our Amazon transactions and these transactions are entered as an Invoice into QB, it includes/breaks down the items purchased, shipping, fees charged by Amazon, etc.  If I create a Sales Receipt, per your recommendation, would I be duplicating the entry?  Also, only part of the original order is being refunded, how would I account for the items that weren't returned if I created a Sales Receipt?

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QuickBooks Team

Creating negative entries in QB

Hi WH1, 

 

Thanks for getting back to us with more details! Allow me to join you here and add up some information to the answer provided by my colleague @MaryGraceS

 

If you're entering the Amazon sales manually into QuickBooks Online, recording them through sales receipts can do the trick. Therefore, the answer provided above is the straightforward course of action if this is the case.

 

Since yours are imported automatically to the program as invoices, you can create payments against these transactions instead. This way, QBO can recognize the sales you made from Amazon. 

 

Once done, proceed with creating a refund receipt only to the portion of the original invoice which you need to return. I've added steps below to guide you through. 

 

To record the payment:

  1. Go to the Create button (Plus icon), then Receive Payment
  2. Select the name of the client from the Choose a customer or project drop-down. 
  3. In the Outstanding Transactions section, put a check mark to the invoices you need. 
  4. Enter other necessary details, such as Payment method, Reference no.Deposit to, Memo
  5. Click Save and Close

To record the refund receipt:

  1. Go back to the Create button (Plus icon), and select Refund Receipt.
  2. Choose the same product/service that you are refunding, and the exact amount of the refund.
  3. Enter the information.
  4. Select Save and close.

You can also bookmark the articles below for future reference:

These resources should help keep you going into recording the transactions. 

 

If you have questions with the process, don't hesitate to leave me a response below. I'll be around to help you out or someone from the Community can swing by here for you. 

 

Wishing you a great and productive day! 

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