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rrtxdogtrainer
Level 1

How to record a refund processed via Square?

I use Square to send invoices and process CC payments. I manually create sales receipts in QB then subtract the CC processing fees when recording a bank deposit. It works well until I have to process a refund. I cannot figure out how to do this accurately.

For example, 

I issued Client a refund of $48. Client received this, but only $46.61 came out of my bank account because Square "covered" the balance of $1.39.
 
If I continue recording the refund as just what came out of my bank account, my income numbers will be correct, but client records will be incorrect-- saying they paid me more than they did because their refund was less than it actually was.

Help!

Signed,
My Tired Brain
2 Comments 2
Rose-A
Moderator

How to record a refund processed via Square?

Good day, rrtxdogtrainer. I'd be pleased to help you with recording a refund in QuickBooks Online.

 

You can record a refund receipt in QuickBooks Online and add another line item for the fees, and enter a negative amount.

 

Here's how:

 

  1. Click + New in the left panel and choose Refund Receipt.
  2. Select the client's name.
  3. Enter the product or service.
  4. In another line item, add the processing fee and enter the amount as negative (see the sample screenshot).
  5. Hit Save and close.

 

You can go through this article for the detailed steps in adding a processing fee in QuickBooks: Add service fees manually to invoices.

 

In the meantime, you can visit the following write-up: Sales and customers. This will provide you links on how to manage your company income as well as resources about other sales-related concerns.

 

Please know that QuickBooks Community is always here if you need additional help in the future. I'd be glad to answer any further questions should you have any. Have a great day!

Rose-A
Moderator

How to record a refund processed via Square?

Hi, rrtxdogtrainer.

 

Hope you're doing great. I wanted to see how everything is going about recording a refund. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I'd be happy to help you at anytime.

 

Looking forward to your reply. Have a pleasant day ahead!

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