How can i refund an invoice which was paid in a batch deposit so i can correct it and issue a new payment?

If a customer invoice was paid in a batch and the payment was later rejected, you can create a refund receipt to "undedposted funds", then select this refund receipt with the batch that the money was "taken back" in. Just be sure to receive the other invoice payments in this batch to undeposited funds as well so the total deposit amount matches what come through the bank feed.  You will make the total deposit on the date it was received, then match it in the bank feed.

Hello Regina:

Hopefully you can help me out. 

Background:

Working with QBO Advanced

There is a Merchant Account.

There is an Income Checking account where merchant batch deposits are records for customers payments.

There is an Undeposited Account.

We create duplicate invoices in QBO and clear them by recording a payment and then of course recording the batch deposits.

There are several ways (scenarios) that a refund can occur via the Merchant's handling / processing of the multiple customer's invoices which they generate and receive payment for. Only one of those scenarios is described below.

Situation:

Invoice created in QBO and cleared (recorded as paid) and then deposited into Income checking account via a batch deposit in month one.

In month two, customer was issued a refund via the merchant.

The source of the funds used by the Merchant for the refund paid back to the Customer was part of a batch deposit received by us.

So I created a Refund Receipt and assigned it to the Undeposited Account.

The batch deposit was then cleared from the Undeposited Account by including the Refund Receipt along with the other customer payments in the batch deposit recorded in the company income checking account.

Problem Encountered by taking this approach:

When clicking on the Customer view and looking at the overview of all the previous transactions, the Invoice, Payment and the Refund transactions all can been seen.

However the Balance showing is a (-) negative amount equivalent to the amount of the Refund issued.

Having researched numerous articles in the community and elsewhere, I suspect that the problem occurs because the issuance of the Refund Receipt results in a new entry into the A/R which has not yet been "balanced" via a corresponding (but opposite transaction).

If this is indeed the "cause" for the negative value in the Customers Balance, do you know of a method to clear that out? I have not been able to figure out how to do that.

Or perhaps there is an entirely different way to resolve this problem . . . .

Thank you Regina.

To those members of the QB support team - please do not reply to this query by inclusion of links to all the standard SOP on how to enter a Refund. I've read them all and I've tried them all.

Yes, perhaps, I need to incorporate one of the various procedures included in those sets of instructions in order to clear out the imbalance. 

I certainly do recognize that the step or steps I am failing to take is included in one of the SOPs. It is a strong possibility. But I have tried every which way addressed in those canned instructions and none of them seem to work based on the specific scenario I've described above.

What I am seeking here in this query are replies from seasoned veterans of QBO who understand the complexities surrounding the circumstances I've outlined above and can offer me a workable solution that I can implement into an SOP for future use.

All suggestions or recommendations will be respectfully accepted and replied to. However, I just don't need to be sent all the existing links on how to issue a refund. Been there done that a hundred times. 

Respectfully Submitted,

mkm

I appreciated all the steps you've done and for outlining the complete scenarios of your concern, mkm2.

I have here some details and instructions on how to resolve the customer's negative balance in QuickBooks Online. Rest assured, that this reply is not about entering a refund and their links. 

Let's double-check the customer's transaction in the lists. Make sure that there are no outstanding transactions and credit so the negative balance will fix. If there are, I'd recommend deleting it so your reports and accounts are accurate. 

Here's how: 

1. Go to the Transactions List on the Customer page. 
2. Click the Filter drop-down arrow, then choose All transactions and All dates. 
3. Review each transaction type. 
4. Click the transactions and tap Delete under More. 

Once everything is set, you can always run any customer reports to track all the data you've entered into the system. You can also customize and memorize the reports. You may refer to this article for the detailed steps: Run reports in QuickBooks Online.

Lastly, feel easy to check out these articles below about handling customer's transactions, banking data, and reconciling accounts.

• Reconcile an account in QuickBooks Online
• Banking
• Sales and customers

Post again in the Community if there's anything else you need or follow-up questions. I'm here to keep helping. Keep safe, mkm.

Hello Regina:

Hopefully you can help me out. 

Background:

Working with QBO Advanced

There is a Merchant Account.

There is an Income Checking account where merchant batch deposits are records for customers payments.

There is an Undeposited Account.

We create duplicate invoices in QBO and clear them by recording a payment and then of course recording the batch deposits.

There are several ways (scenarios) that a refund can occur via the Merchant's handling / processing of the multiple customer's invoices which they generate and receive payment for. Only one of those scenarios is described below.

Situation:

Invoice created in QBO and cleared (recorded as paid) and then deposited into Income checking account via a batch deposit in month one.

In month two, customer was issued a refund via the merchant.

The source of the funds used by the Merchant for the refund paid back to the Customer was part of a batch deposit received by us.

So I created a Refund Receipt and assigned it to the Undeposited Account.

The batch deposit was then cleared from the Undeposited Account by including the Refund Receipt along with the other customer payments in the batch deposit recorded in the company income checking account.

Problem Encountered by taking this approach:

When clicking on the Customer view and looking at the overview of all the previous transactions, the Invoice, Payment and the Refund transactions all can been seen.

However the Balance showing is a (-) negative amount equivalent to the amount of the Refund issued.

Having researched numerous articles in the community and elsewhere, I suspect that the problem occurs because the issuance of the Refund Receipt results in a new entry into the A/R which has not yet been "balanced" via a corresponding (but opposite transaction).

If this is indeed the "cause" for the negative value in the Customers Balance, do you know of a method to clear that out? I have not been able to figure out how to do that.

Or perhaps there is an entirely different way to resolve this problem . . . .

Thank you Regina.

To those members of the QB support team - please do not reply to this query by inclusion of links to all the standard SOP on how to enter a Refund. I've read them all and I've tried them all.

Yes, perhaps, I need to incorporate one of the various procedures included in those sets of instructions in order to clear out the imbalance. 

I certainly do recognize that the step or steps I am failing to take is included in one of the SOPs. It is a strong possibility. But I have tried every which way addressed in those canned instructions and none of them seem to work based on the specific scenario I've described above.

What I am seeking here in this query are replies from seasoned veterans of QBO who understand the complexities surrounding the circumstances I've outlined above and can offer me a workable solution that I can implement into an SOP for future use.

All suggestions or recommendations will be respectfully accepted and replied to. However, I just don't need to be sent all the existing links on how to issue a refund. Been there done that a hundred times. 

Respectfully Submitted,

mkm

That you for the reply Michelle.

Perhaps I was a bit "thin" on the details. The Customers's transactions were balanced to zero (0) prior to creating the Refund Receipt (RR).

So yes, if I understand your recommended solution, if the RR is deleted the Customer's balance will return to zero.

However, taking those steps results in reverting back to the initial issue of how to record the refund within a batch deposit made by the merchant.

So in summary, deleting transactions is not a viable solution. Again thank you for the reply.

mkm

Hello there, @mkm2.

The negative balance will show on the customer's profile because you've created a Refund receipt of the invoice not included in the duplicate one.

If you wish to see all the data of the customer, you can run the customer reports in QuickBooks Online.

Please know that you can always get back to us if you have other questions. We're always here to help.

Hello. I have the same problem with refunds that are mixed in with the payment batches from our point of sale - The way I work around to balance to zero is by:

1)create a credit memo for the product or service you are refunding ( this will put the customer balance to a negative)

2) when creating a deposit by matching the payments of the customers, after you have found all the payments from the customers for that deposit, you will have a difference in the amount of the refund (or refunds combined) you can resolve the difference at the bottom of the page by creating expense(s) to the customer(s) through accounts receivable for the amount of the refund(tax-out of scope). *now your customer balance will still be off

3) RECEIVE PAYMENT FOR THAT CUSTOMER - this will match the expense (for a/r) and the credit memo(for product return) and the amount of the payment with be $0 - at the end your customers balance will be back to zero.

It is a pain to do (I agree) but I have not been able to find a faster solution myself. If only refund receipts showed up in the transaction matching of the bank deposit

Greg