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How do I record a credit card credit given to me by the bank to refund a fraudulent purchase?

I made a purchase at an online retailer who did not deliver the product. When I informed the credit card company (bank), they applied a credit adjustment. That adjustment appears in QBO as a transfer from Uncategorized Asset. Should I accept this transaction as is and be done with it? Or should I somehow connect it to the expense account from which I made the original purchase?
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Best answer March 26, 2020

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QuickBooks Team

How do I record a credit card credit given to me by the bank to refund a fraudulent purchase?

Thank you for providing detailed information about the your credit card transaction, cory9.

 

You can create a Credit card credit to record the credit given by your bank. Then, you'll have to connect the account of the downloaded transaction to the expense account you've used in the original purchase. This way, you can match them in the For Review tab.

 

Before we start, make sure that the information you'll be entering in the Credit card credit is the same as the downloaded transaction. This way, QuickBooks will automatically suggest a match.

  1. Go to the +New button.
  2. Select Credit card credit.
  3. Choose the payee.
  4. In the Bank/Credit account field, select the credit card account you received the refund.
  5. Select the date in the Payment date section.
  6. In the Category details section, select the same expense account of your original purchase.
  7. Enter the amount.
  8. Click Save and close.

 

Once done, let's update the downloaded credit adjustment from Uncategorized Asset to the expense account of your original purchase. Here's how:

  1. Go to the Banking menu.
  2. Select the credit card account by clicking the blue tile.
  3. In the For Review tab, locate and select the credit adjustment.
  4. Select the expense account in the Category field.
  5. Click the Find match bullet.
  6. Locate the credit card credit transaction, then click the box before the date.
  7. Click Save.

I've attached screenshots below for your reference.

22 QBO Find Match.PNG 23.PNG

 

After the process, you can reconcile your account. I'd recommend performing it every month to keep your books accurate. For the detailed steps, kindly refer to this article: Reconcile an account in QuickBooks Online. It also contains information on how to edit completed reconciliations.

 

Please let me know if you have other concerns. I'm just around to help.

View solution in original post

1 Comment
Highlighted
QuickBooks Team

How do I record a credit card credit given to me by the bank to refund a fraudulent purchase?

Thank you for providing detailed information about the your credit card transaction, cory9.

 

You can create a Credit card credit to record the credit given by your bank. Then, you'll have to connect the account of the downloaded transaction to the expense account you've used in the original purchase. This way, you can match them in the For Review tab.

 

Before we start, make sure that the information you'll be entering in the Credit card credit is the same as the downloaded transaction. This way, QuickBooks will automatically suggest a match.

  1. Go to the +New button.
  2. Select Credit card credit.
  3. Choose the payee.
  4. In the Bank/Credit account field, select the credit card account you received the refund.
  5. Select the date in the Payment date section.
  6. In the Category details section, select the same expense account of your original purchase.
  7. Enter the amount.
  8. Click Save and close.

 

Once done, let's update the downloaded credit adjustment from Uncategorized Asset to the expense account of your original purchase. Here's how:

  1. Go to the Banking menu.
  2. Select the credit card account by clicking the blue tile.
  3. In the For Review tab, locate and select the credit adjustment.
  4. Select the expense account in the Category field.
  5. Click the Find match bullet.
  6. Locate the credit card credit transaction, then click the box before the date.
  7. Click Save.

I've attached screenshots below for your reference.

22 QBO Find Match.PNG 23.PNG

 

After the process, you can reconcile your account. I'd recommend performing it every month to keep your books accurate. For the detailed steps, kindly refer to this article: Reconcile an account in QuickBooks Online. It also contains information on how to edit completed reconciliations.

 

Please let me know if you have other concerns. I'm just around to help.

View solution in original post

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