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anujin-ba
Level 2

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

 
Solved
Best answer April 13, 2020

Best Answers
ChristieAnn
QuickBooks Team

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

Hi there, anujin-ba.

 

I'm here to guide you on how to enter the service fee from the deposited payment amount. 

 

You'll need to enter the fee as a negative amount on the Bank Deposits screen when depositing a payment. That way, we can match the transaction to the total amount deposited into your actual bank.

 

 

  1.  Click the Plus icon
  2.  Select Bank Deposits.
  3.  Choose the customer payments in the Select Existing Payments section.
  4.  Enter the processing fee as a negative amount in the Add other funds to this deposit section.
  5.  Choose the expense account that you use to track these fees in the Account drop-down.
  6.  Click Save.

 

This method helps to ensure that customer payments and processing fees are accurately recorded. For an overview of this process, I suggest visiting this article: Enter a bank service fee while using a third-party merchant service.

 

Please check this article to see steps on how to check when QuickBooks deposits customer payments into your bank account: Find out when QuickBooks Payments deposits customer payments.

 

You can also refer to this article how QuickBooks Payments deposits work in QBO and different information about QuickBooks Payments: Common questions about payments deposits in QuickBooks Online.

 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

View solution in original post

12 Comments
JamesDuanT
Moderator

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

Hello anujin-ba,

 

I want to know more about this so I can give you the exact answer to your concern. Are you trying to match the shopify transaction to a banking transaction? Or you're trying to apply it as payment to an invoice. Can you give us an example or scenario about this? This would help us determine or picture out what is happening.

 

Thanks in advance for any details you can add about this.

anujin-ba
Level 2

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

.

anujin-ba
Level 2

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

Thank you for your reply.

Shopify depostits the payments of various invoice in 1 transaction to our bank account, which goes straight to our banking in QBO online.

Let's say Shopify paid us $1,200 which is payments for invoice#1 - $500, invoice#2 - $500 and invoice#3 $500 which totals $1,500 but it also deducted $300 refund of another invoice which has been paid before. How do I allocate this payment to each of these 3 invoices as well as that 1 refund? Should I create refund receipt or credit memo? How do I match the payment in our banking section? 

 

Rose-A
Moderator

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

Good day, anujin-ba.

 

I'd be glad to help you allocate the refund and match the payment to your open invoices in QuickBooks Online.

 

You can create a credit memo and apply it to an open invoice for a given customer.

 

Step 1: Enter the credit memo:

 

  1. Select + New.
  2. Select Credit memo or Give credit.
  3. Fill out all required fields (including the customer name, date, products/service items, quantities, and amounts).
  4. Select Save and close.

Step 2: Apply the credit memo:

 

  1. Select + New.
  2. Select Receive payment.
  3. Complete these fields as follows:
    • Customer Note: Make sure you choose the customer or project you selected in the invoice.
    • Date
  4. Under Credits, select Credit memo or Give credit.
  5. Verify that the total to pay (if any) is correct after applying the Credit Memo.
  6. Select Save and close.

Once you applied the credit memo, this will leave a balance to the invoice of 200. See the sample screenshot below.

 

 

After that, let's apply for the Shopify's payment. See the detailed steps below.

 

  1. Go to the Banking page.
  2. Locate the Shopify's payment and click Find match option.
  3. Find the open invoices and hit Save.

The following articles are good references in creating a credit memo as well as matching your transactions in QuickBooks:

 

Let me know how it goes or if you ran into a different situation by adding a reply below. I'd be happy to help.

anujin-ba
Level 2

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

 

I have done as the steps you have mentioned above, but there is one more difficulty. 

Shopify also deducts its service fee from the deposited payment amount. $13 is deducted from each $500 invoice therefore the deposited amount is in fact $1,261 ($500*3 - fee of $13*3 - refund of $200). How do I record this fee when matching  the deposited amount to the invoices? Thank you for your support.

ChristieAnn
QuickBooks Team

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

Hi there, anujin-ba.

 

I'm here to guide you on how to enter the service fee from the deposited payment amount. 

 

You'll need to enter the fee as a negative amount on the Bank Deposits screen when depositing a payment. That way, we can match the transaction to the total amount deposited into your actual bank.

 

 

  1.  Click the Plus icon
  2.  Select Bank Deposits.
  3.  Choose the customer payments in the Select Existing Payments section.
  4.  Enter the processing fee as a negative amount in the Add other funds to this deposit section.
  5.  Choose the expense account that you use to track these fees in the Account drop-down.
  6.  Click Save.

 

This method helps to ensure that customer payments and processing fees are accurately recorded. For an overview of this process, I suggest visiting this article: Enter a bank service fee while using a third-party merchant service.

 

Please check this article to see steps on how to check when QuickBooks deposits customer payments into your bank account: Find out when QuickBooks Payments deposits customer payments.

 

You can also refer to this article how QuickBooks Payments deposits work in QBO and different information about QuickBooks Payments: Common questions about payments deposits in QuickBooks Online.

 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

View solution in original post

anujin-ba
Level 2

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

Thank you for the solution, it works.

 

I have one more thing to ask. How do I match the banking to the invoices/credit memo when the shopify payment is negative? When we have more refund than sales Shopify takes the money from our account.

 

For example, we have 1 invoice payment of $500 but the refund is $700 therefore shopify took $200 and the fee of $13 from our account, totalling $213. How should I record this negative amount as well as its fee? 

BettyJaneB
QuickBooks Team

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

I'm here to provide further insights about this concern, @anujin-ba.

 

You can create an expense transaction for these amounts. You'll need to key in first the amount on the invoice which is $500. Make sure to select the income account used on the transaction when doing this.

 

Next is to add another figure which is $200. This indicates the additional deduction from Shopify. In this case, you'll need to select an expense account since this will be deducted from your income. The same goes for the processing fee, which is $13. 

 

I've attached here a sample snip so you'll have a visual reference on what does the expense looks like: 

 

For more details about creating an expense in QBO, please see this link: Enter, edit, or delete expenses in QuickBooks Online.

 

This way, you'll be able to match the entries from your bank and in QuickBooks. 

 

You can visit these great resources below to guide you in reconciling your bank accounts and fixing its issues:

Know that I'm always here to help if there's anything else that you need. Just let me know by leaving a reply below. Take care!

anujin-ba
Level 2

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

Thank you for your reply.

However, I am not sure about recording this as an expense because the refund is for returning the products we have sold to the customer before. Therefore, I need to record those products back to my inventory since they are returned, I am thinking about creating a credit memo. What should I do in this case?

BettyJaneB
QuickBooks Team

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

Thanks for the details that you gave, @anujin-ba.

 

Your idea is correct. Once a customer is requesting a refund or returning a product, you can create a Credit Memo. After that, you can create a check and have it linked to the Credit Memo that you made.

 

Here’s how to create a credit memo in QBO:

  1. Click the Plus (+) icon and select Credit Memo.
  2. Choose the customer name.
  3. Enter the Credit Memo Date.
  4. Fill in the necessary information.
  5. Hit on Save and close.

Once done, you may proceed with applying it to the invoice. Follow the steps below on how:

 

  1. Go to the Plus icon, then pick Check under Vendors column.
  2. On the Category details section, enter/choose the following:
  • Accounts - Accounts Receivable.
  • Amount - Credit amount.
  • Customer - Customer's name.

      3. Hit Save and close.

 

For your reference about this process, please check out this article: Apply a credit memo, credit or refund to a customer.

 

These articles attached below provides more details about recording customer refunds in QuickBooks Online, you might consider checking them out:

Please let me know if you have questions. I’ll be here to help. Wishing you the best!

sameeruddin
Level 1

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

What should I do now for those transactions? Hit them to Expenses or other accounts?

Jen_D
Moderator

Hello, I am having difficulties with applying payments from Shopify when the Shopify payout include both charges and refunds. How do i apply the refund?

Thanks for your time posting here in our forum, @sameeruddin,

 

If you already added a bank deposit for the fees in QuickBooks, as suggested by ChristieAnn, you no longer need to categorize it in the Banking page. Just click the Find Match option next to Categorize to clear the bank transaction in the register.

 

Refer to this article for the steps to match or categorize bank items in QBO: Download, match, and categorize your bank transactions in QuickBooks Online.

 

Please don't hesitate to leave a comment if you have further concerns about entering tips in QuickBooks Online. I'm just around if you need further assistance.

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