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.

.

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? 

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:

• Match and categorize bank transactions in QuickBooks Online
• Enter and apply credit memos and delayed credits in QuickBooks Online

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.

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.

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? 

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:

• Reconcile an account in QuickBooks Online
• Fix issues when you're reconciling accounts in QuickBooks Online

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!

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?

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:

• How to refund a credit card payment
• Record a customer refund in QuickBooks Online

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

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

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.

I’m sorry but this seems to be going in circles, ending up with a dilemma in the end.  The problem or i should say glich is that quickbooks must fix the system so that when we try to match batch credit card deposits we can pull up credit memos/refund receipts not just invoices awaiting payment. Why in the world would quick books not allow this in their program?. Everyone and i mean everyone using e-commerce platforms like Shopify and amazon are struggling with this !!!  And not one Quickbooks rep can fully solve the problem , at least by typing it out.  There is no follow through. You act like you are giving a resolution but your resolutions bring us to another wall. Ultimately the real problem is a faulty quickbooks limitation and I’m just about fed up and going to start looking into another platform to recommend to my clients.  Perhaps if someone from quickbooks could get on the phone and follow through with me from start to finish to see that their so called solutions do not work.  Applying credit card refunds within a deposited batch should not be this much of a hassle!!

Hi, Sbragin.

Thanks for sharing your point. I appreciate the detailed information about your ideas on how to make QuickBooks Online (QBO) better. QBO is constantly changing and evolving based largely on the suggestions and requests of users like yourself. We are taking note of your suggestions regarding the process of matching batch credit card deposits we can pull up credit memos/refund receipts using third-party applications like Shopify.

For now, I want you to get in the loop about the latest news and product developments in QuickBooks. That said, I encourage you to visit our Firm of the future site. To narrow down your search, you can go to the Product & Industry News tab.

To help you with future tasks and tips when using QBO, you might want to visit our Help Articles.

If I can be of help while working in QuickBooks, please let me know. I'll be here to help. Have a good one!

Hi! Were you able to find a way to match the negative amount to the corresponding invoices and credit memos? I am facing the same issue. Can you please help? Thank you.

Thanks for joining us here, @Oxford_2020.

Let's get your Shopify payments matched with QuickBooks. You'll want to use the Find match option from the Bank Feed Center to apply the payments to your invoices. If the Shopify transactions include a refund, you need to create a credit memo in QuickBooks and apply it to the open invoice. This way, you'll have the same amount with your Shopify transaction.

My colleague @Rose-A has detailed steps and screenshots you can follow. Please scroll up to see them.

I'm also attaching these helpful links below for your reference. It contains information to guide you through the process.

• Enter a bank service fee while using a third-party merchant service.
• Enter and apply credit memos and delayed credits in QuickBooks Online
• Match and categorize bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

 Don't hesitate to reply to this thread if you have follow-up questions or concerns with Shopify and QuickBooks transactions. I'm more than happy to assist you. Take care and have a good one.

Hi @ShiellaGraceA,

Thank you for your reply. How can I make the invoice "paid" if the payout includes a refund, and the refund is higher than the amount received resulting to a negative amount? Example: Invoice 001 - $100, shopify fees $5, refund $150 for invoice. The resulting negative amount of $55 cannot be a "receive payment". What I did instead is to record it as an expense so I can match the -$55 to the bank feed with spent amount of "$55". The problem with this procedure is that the invoice that was actually paid will not be matched, hence the status will remain outstanding.

Good morning Oxford_2020,

Thank you for sharing how you approached this. For this situation, it would be best to reach out to your accountant to see what would work best with your business. If you don't have an accountant, no worries. QuickBooks offers a service called Pro-Advisor, where you can connect with experts within your area. Enter your search code and view the variety of accountants or bookkeepers. They even offer a free consultation. Here is how to connect with one: 

1. Select the Find my Accountant link.

2.  In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.

3.  Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.
   

Let me know if you have any other questions! I will be here to help. Be safe and take care.