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danieljlewis
Level 1

Recording credit card refunds in QuickBooks for Mac?

I'm having a horrible time recording refunds in QuickBooks for Mac.

 

First, I learned that simply clicking the "create refund" to issue a "check" wasn't enough, because my Accounts Receivable was getting overloaded. So I had to use Payments to attach the "check" to the Credit Memos.

 

Okay. That works fine for "check" payments like PayPal. But what about credit card payments?

 

Here's the process so far.

 

  1. Customer pays for something on my site.
  2. The payment is processed by Stripe.
  3. I use "Create Sales Receipt" to enter the sale information and "Group with undeposited funds."
  4. Every Friday, Stripe deposits the latest payments (minus a couple days) into my bank account.
  5. I use "Record Deposits" and select all the payments Stripe has deposited, and I enter the adjusted deposit amount so the difference is categorized for merchant fees.
  6. Next week, I issue Customer a refund.
  7. I create a "Credit Memo" for Customer.

Because I have Stripe deposit payouts only once a week, I usually a large enough balance to cover the rare refunds. So instead of Stripe's withdrawing that refund from my bank account, they simply deduct it from the next payout.

 

So now what? How do I properly record that in QB for Mac?

 

I can't use the check feature because the refund is coming from undeposited funds (my Stripe account), not from PayPal or my bank account.

 

If I try to use "Payments" and apply the existing credits, the "Payment" disappears after I save it.

 

So what am I supposed to do?

 

I read https://quickbooks.intuit.com/learn-support/en-us/customer-refunds-and-credits/void-or-refund-credit..., but that shows things that clearly don't apply to QuickBooks Desktop for Mac.

 

Thanks in advance!

10 Comments
SarahannC
Moderator

Recording credit card refunds in QuickBooks for Mac?

Hi there, danieljlewis.

 

I'm glad to have you here and help you out with your query. It's a big help that you've provided enough details of your concern. Let me share some information on how we can record the credit card refunds in QuickBooks for Mac.

 

We don't need to use Payments to attach the check to the credit memos. What we'll have to do is create a credit memo then write the refund check. I see you're unable to use the check since the refund is coming from undeposited funds. It's created by QuickBooks to hold funds until you are ready to deposit them in the right bank.

 

The first thing we'll have to do is deposit the transactions from undeposited funds to your bank account.  Let's change the Deposited To account from Undeposited account. Make sure to enter the name of the bank account where you would like QuickBooks to deposit the transaction. Afterward, we can follow the steps below to continue the process:

 

Create a credit memo:

  1. Go to Customers and select Create Credit Memos/Refund.
  2. Enter the details needed for the refund.
  3. I would recommend reviewing everything one more time to make sure it's all properly entered.
  4. Once done, click Save.

 

Write a refund check:

  1. Open the credit memo you would like to use for the refund.
  2. At the menu, click the Refund icon.
  3. Review the details if it's all accurate.
  4. In the account details area, make sure to use Account Receivable.
  5. Then, Save

 

Link the check to the payment:

  1. Go to the Customers menu.
  2. Click Receive Payments.
  3. Make sure to select the right customer. At the bottom section of the window, you'll see the amount of the credit in the Existing Credits field and the refund check. Then, hit Apply Existing Credits?
  4. Enter the amount in the Payment column.
  5. Then, Save.

 

For additional information, you can check this article: QuickBooks Desktop Mac 2020 User’s Guide. This article contains a lot of information. If you would like to explore a particular topic, I would suggest pressing CTRL+F and enter the keyword to find it easily.

 

Let me know if you require additional information about it. I'll be here to guide you further. Stay safe and take care!

danieljlewis
Level 1

Recording credit card refunds in QuickBooks for Mac?

"The first thing we'll have to do is deposit the transactions from undeposited funds to your bank account.  Let's change the Deposited To account from Undeposited account. Make sure to enter the name of the bank account where you would like QuickBooks to deposit the transaction."

 

I'm sorry, that won't work. The funds are not being deposited into any bank account because they're sitting in Stripe waiting for the next weekly deposit.

 

But even if the funds I refund were deposited, creating a "check" from that account will make my records inaccurate since the refund is coming from the undeposited funds, not from my bank account. 

Ryan_M
QuickBooks Team

Recording credit card refunds in QuickBooks for Mac?

Hi @danieljlewis,

 

I appreciate your prompt reply. Allow me to join in this conversation and take care of your query. 

 

As @SarahannC mentioned above, the Undeposited Funds account isn't available as an option for a refund check. You can follow the steps she provided, then create a deposit to the bank account where the refund came from. This way, it will offset the refund amount you sent to your customer, as well as keep your bank balance accurate. 

 

You can keep this article for reference on the refund process: Record a credit memo or refund in QuickBooks Desktop for Mac

 

As for entering a refund for vendors, check out this article: Record a vendor refund in QuickBooks Desktop. You'll find 5 different scenarios, along with their respective steps. 

 

Do you need further assistance? Place a comment below, and I'll get back to you. 

danieljlewis
Level 1

Recording credit card refunds in QuickBooks for Mac?

So you’re telling me to make my accounting inaccurate in order to account for something QuickBooks apparently still can’t handle better?

Charies_M
Moderator

Recording credit card refunds in QuickBooks for Mac?

Thanks for getting back to us, danieljlewis.

 

We want your accounting reports to be accurate. Instead of creating a credit memo, you'll want to record a journal entry. This way, you can withdraw the amount from the Undeposited Funds account and then refund your customer.

 

I'll show you how to do it:

 

  1. Choose Banking.
  2. Click Make General Journal Entries.
  3. If you want the date of the transaction to be different than today’s date, change the date that
    QuickBooks filled in.
  4. Fill in the entry number of the transaction.
  5. In the Account column of the detail area, enter the first account in your transaction. Then enter the
    debit or credit amount, your memo about the amount, and a source name.
  6. Click Save and close.

Here's an article to become more familiar with managing Journal Entries in QuickBooks: A QuickBooks Refresher on Journal Entries.

 

Please know that journal entries are the last report for recording transactions. I'd recommend consulting with your accountant before doing so.

 

You can also find an account by clicking on this link: Find an accountant.

 

I'll leave you with a guide to know anything about QuickBooks Desktop for Mac: QuickBooks Desktop Mac 2020 User’s Guide.

 

If you have additional questions or concerns, just leave me a comment below. I’ll be happy to help you out.

danieljlewis
Level 1

Recording credit card refunds in QuickBooks for Mac?

Sorry, no. That still doesn't work. Journal Entries must have the same debit and credit amount, so that seems pointless and doesn't address the sales receipt I have.

 

If I had or could afford an accountant, do you think I would be wrestling with all the bugs and shortcomings of QuickBooks myself?

Catherine_B
QuickBooks Team

Recording credit card refunds in QuickBooks for Mac?

Hello there, danieljlewis. 

 

You can get a free chat and talk with our experts through out QuickBooks Live Bookkeeping. This way all your transactions and books are accurate. I'll how you how:

  1. Go to the Gear icon and click Account and Settings.
  2. From the Billing & Subscription menu, select Find out more under QuickBooks Live Bookkeeping.
  3. Select Get a free bookkeeper consultation.
  4. Choose and select to Schedule time to talk or Chat now

Feel free to get back to use if there's anything else you need help with. The Community is open 24/7 to assist you. Take care!

danieljlewis
Level 1

Recording credit card refunds in QuickBooks for Mac?

I don't have anything you just described. Did you not see that I'm on QuickBooks for Mac?

danieljlewis
Level 1

Recording credit card refunds in QuickBooks for Mac?

 
Angelyn_T
QuickBooks Team

Recording credit card refunds in QuickBooks for Mac?

Thank you for getting back to us here on the Community page, @danieljlewis.

 

I'm here to guide you how you can get a free consultation from any of the accounting experts available on your area.

 

For any version of QuickBooks, you can visit the Find-a-ProAdvisor website and look for an accountant or bookkeeper within your area that can help and advice you about accounting matters. All you need to do is click on the envelope icon from their profile to send them a message.

 

Here are the detailed steps:

 

  1. Open this link: https://quickbooks.intuit.com/find-an-accountant/.
  2. Select what types of expert you want by checking the boxes beside the available options.
  3. Enter your city or zip code from the field provided, then click Search.
  4. Tap on the message icon under the Offers Free Consultation button to message the expert.

 

Once done, you may download our QuickBooks Desktop for Mac User Guide in case you need related resources while working with QuickBooks.

 

Let me know if you have any other questions. I'm always here to help. Have a good day!

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