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RoboticRice
Level 1

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

Hello. I use a credit card processing company for my website to handle transactions, and my website has a plugin that automatically creates invoices for the purchases on my website. The problem is that my credit card processing company sends my money to me in batches, so I'll receive multiple transactions of both income and expenses mixed together. I can match the transaction to all the invoices right now and add a line for bank fees, but I have no way to match refunds or credits to refund receipts or credit memos (see photo). How can I do this?

12 Comments 12
Charies_M
Moderator

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

Hello there, RoboticRice.

 

You'll need to create a Bank Deposit with a negative amount for the fees. I'll walk you through the instructions below:

 

Here's how:

 

  1. Go to the +New icon.
  2. Under Other, choose Bank deposit.
  3. Fill in the Account, Date and other necessary information. Under Add funds to this deposit section, enter a negative amount for the fees.
  4. Click Save and close.

Once done, you can start matching the transactions on your Banking page.

 

Check out this guide for additional insight on how to match transactions in QBO: Add and Match Downloaded Banking Transactions.

 

Be sure to drop me a reply if you have additional questions. I'd be more than happy to help. Stay safe and have a good one.

RoboticRice
Level 1

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

I'm not sure if your solution actually solves my issue.

 

When I try to create a Bank Deposit with a negative value, it gives me this error:

jamespaul
Moderator

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

Hello, RoboticRice.

 

A bank deposit must always have a positive total amount to save it. Otherwise, the error message will show up (like in your second screenshot). 

 

I'd like to contribute a solution to your original question. Though, a quick overview before we start. Refund transactions do not show up under the "Received" (income) downloaded bank transactions. They'll only show up if you selected a "spent" (expense) transaction. 

 

That said, we can come up with two scenarios to resolve this. Does the refund transaction reflect as "spent" in the For Review tab?

 

If so, you'll want to select the payment receipts until the amount matches with the downloaded transaction. After that, you'll want to look for the refund transaction in the For Review tab, and then match it with the refund receipt. 

 

If the refund transaction doesn't show up in the For Review tab, you'll want to skip the matching process. Then, you'll want to manually clear the transactions in your QuickBooks Online register. Here's how:

 

  1. Go to your Chart of Accounts.
  2. Find your bank account, then click View register.
  3. Find the transactions, then go to the "check mark" column.
  4. Click the empty box until a "C" appears.

ManualClear1.PNG

 

After that, you'll want to exclude the downloaded bank transaction. Here's how:

 

  1. Go back to your banking page.
  2. Go to the For Review tab. 
  3. Find the downloaded bank transaction, then put a check mark on the box.
  4. Hit the Batch actions tab.
  5. Select Exclude Selected

When you're ready to reconcile your account, you can check this article for the steps. 

 

The Community portal is always here to provide you with answers to your QuickBooks questions. We always appreciate your time visiting here.

newmarketbbq
Level 2

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

FINALLY someone who actually answered the question on how to handle refund receipts that don't show up in the matching window, but BIG BOO BOO on QB for not making this easier for their customers. I don't like that I have to MANUALLY clear the hundreds of transactions I have to clear for all my online orders that come in because I can't use the match feature. Very disappointed.

 

Thanks to @jamespaul for outlining the steps, so I can atleast move on and get my books reconciled. 

quebeeohnightmare
Level 1

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

i'm having a hard time believing that we have to exclude transactions in order to process a batch deposit that includes a refund.  If this is real (and i hope not) intuit should pay us for using quickbooks...

TheBookkeeperBoss
Level 2

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

This is how I resolved the issue of matching deposits from bulk deposits from my merchant services provider which include refunds. 

  1. Each of my invoices are initially entered into QBO
  2. The credit card payment is recorded/applied to each invoice and coded to the Undeposited Funds account.
  3. Credit card refunds are entered through the Refunds journal found in the + menu.  These are also coded to Undeposited Funds
  4. When the bulk deposit comes into bank feeds eg. $146.00 comprised of 3 payments of $147.50, 2 refunds of $147.50 and one refund of $1.50 (Net deposit of $146.00)
  5. I select the Find Match radio button on the deposit of $146.00 in bank feeds.
  6. There I select the 3 payments of $147.50 each.  This leaves me with an unresolved amount of $296.50.  This is the total of the refunds which do not show up in the Match Transactions list.
  7. I go to the bottom of the Match Transactions list where the difference of $296.50 is shown and I toggle the button Resolve  (it then turns green and a form appears below it)
  8. In the form below, I create a separate line item for each refund that I had previously recorded to Undeposited Funds.  Since they are refunds, they are recorded as negative amounts.  This will clear the undeposited funds created by the refund transactions and deduct them from the deposit.  
  9. Now my deposit matches and I can hit Save.

I hope this helps 

 

Fossett BookWorks
Level 1

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

You are a lifesaver!!! I just spent over 2 hours on chat w/ QBO with NO RESOLUTION!!!! They should be paying YOU!  Thank you so much for your post.  You are going to save tons of people from headaches!!!

sschuller
Level 2

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

This was EXACTLY the answer I needed!  After spending 75 minutes on the phone with QB, who still wasn't able to help me, I tried your suggestion and it worked!!  Thankyou so much for putting this out here for the rest of us.

ClientManager
Level 1

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

This is an excellent solution when the final amount is a deposit, does anyone have any suggestions (other than the "exclude" and manual reconcile) for when the total is a refund (withdrawal)?

ShiellaGraceA
QuickBooks Team

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

Thanks for joining us here today, @ClientManager.

 

I'll share some information on how you can match your refund transaction in the bank feed center. You will need to create a matching refund transaction in QuickBooks first so you can match your bank transaction to it. Let me guide you how.

 

To create a QuickBooks transaction:

 

  1. Go to +New.
  2. Select Refund receipt.
  3. Enter the refund detail.
  4. Click Save and close.

 

After that, match your downloaded bank transaction with the refund receipt. Here's how.

 

  1. Go to Banking, then choose Banking at the top.
  2. Under the For Review tab, select the transaction to open.
  3. Tick the Find match radio button. This will bring up the Match transactions window.
  4. Look for Refund receipts in the Show drop-down.
  5. Click Save. See the attached images below.

 

 

 

 

 

Want more details about this? Check out this guide: Categorize and match online bank transactions in QuickBooks Online.

 

 

I'm also attaching this link here in case you need help with other banking tasks. Just look for responses that fit your concern.

 

I'll be on the lookout if you still have questions or concerns with bank transactions. Drop them in the reply section and I'll be happy to answer them for you. Take care and stay safe.

 

lshulda41
Level 1

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

I would like to know this as well.  I have a -294.59 Refund and a Sales Receipt of $188.97 for a net amount SPENT (not deposited) showing up from the bank import of -105.62.  When trying to match, it is wanting to pull up expenses, not sales deposits so I am unable to get this taken care of to resolve the undeposited funds account that contains both the sales receipt & refund amounts mentioned.  

Giovann_G
Moderator

How to match one bank transaction to multiple invoices and refund receipts (or credit memos)?

I know a method to resolve this, lshulda41.

 

We can't create a negative amount on sales in QuickBooks Online. We'll need to open a clearing account and deposit the $188.97 sales receipt as well as the $-294.59 refund. Then, create an expense transaction from your bank and use the clearing account as the category since it's a money-out transaction. I'll walk you through the procedure.

 

Step 1: Create a clearing account:

 

  1. Go to the Accounting menu, select Chart of Accounts.
  2. Click New.
  3. Choose Bank for the Account Type. You may select any detail type you want.
  4. In the Name field, type in Clearing account.
  5. Once done, hit Save and close.

 

Step 2: Deposit the sales receipt to the clearing account:

 

  1. Click the + New icon, select Bank Deposit.
  2. In the Account dropdown, choose the Clearing account.
  3. Select Undeposited Funds in the Account column and enter the amount of $188.97.
  4. Once done, hit Save and close.

 

Step 3: Change the holding account of your refund from Undeposited Funds to Clearing account:

 

  1. Go to the Sales menu.
  2. Locate the refund transaction of $294.59.
  3. In the Refund From dropdown, select Clearing Account.
  4. Hit Save and Close.

 

Step 4: Create an Expense transaction to zero out the clearing account:

 

  1. Go to the + New icon, select Expense.
  2. In the Payment account field, select the bank account.
  3. On the first line, choose the clearing account under the Category column and enter the refund amount of $294.59.
  4. On the second line, choose the clearing account again and enter the sales receipt amount of -$188.97.
  5. Once done, hit Save and close.

 

After that, go to the Banking page and match your imported bank transaction. Also, I'd recommend consulting your accountant to ensure your books are accurate. 

 

In addition, I've got this article to guide you in case you're ready to reconcile your account: Reconcile an account in QuickBooks Online.

 

You're always welcome to go back to this thread if you have further questions about banking. I'm here to back you up.

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