How do I post this? Credit card payment and deductions when issuing refund, etc.

sgmken · ‎February 23, 2021

I'm confused and need some help.

Story: Customer Steve signed up for a yearly product by accident, and only wanted monthly.

Yearly Product: $1,089.00

Monthly Product: $99.00

Customer charged $1,089.00

I then gave a cc refund back of $990.00

(Leaves the $99 payment for his purchase, which is now correct)

All good so far......

Here comes the credit card deposit, which I do not know how to mark in QBOL bank screen:

2/19/21 - Received cc deposit of $1,140.57

This reflects:

1. $1,089 charge for Steve above.

2. $99.00 charge for Russell (another customer)

3. -47.43 - misc cc fees

2/22/21 - Deduction from checking account to cc company to refund above customer:

-$807.29 deducted from checking account, which reflects the following:

1. -$990 refund back to Steve

2. $99.00 payment received from Patricks Purchase

3. $99.00 payment received from Eugenes Purchase

4. $6.97 cc fees

Questions:

I use Sales receipts and not invoices.

1. Should I create a sales receipt for Steve for $1,089 or $99? I originally did a sales receipt for $1,089 and then a second line credit on the sales receipt for $990.00, which left a correct purchase amount of $99.00.

How would you mark all of this all in QBOL? I keep getting confused The most simple way please :)

Thanks,

Ken

Jen_D · ‎February 23, 2021

Thanks for posting here, @sgmken,

I want to make sure you're able to record the entries correctly in QuickBooks.

Regarding the transaction for 2/19/21, you can simply create and deposit the sales receipt to the Undeposited Funds account. Make sure to use the exact amounts received that appears in the bank statement fro reconciliation purposes.

Then, create a bank deposit with the credit card fee so you can match it with the bank entry.

Enter a Bank Deposit for the credit care fee to relieve the balance from Undeposited Funds account.

Click the QuickBooks Plus (+) icon then select Bank Deposit.
Mark the sales receipts from the Select the payments included in this deposit section.
Expand the Add funds to this deposit section to add a new line item.
In the Account column, add an expense account for the fee.
For the Amount field, enter a negative amount for the credit card fee.
Make sure the deposit matches the net bank deposit amount.
Click Save and close.

You can now match the transaction to the online banking transaction. Here are the steps with sample screenshot:

Go to the Banking menu and select the account where you receive the deposit.
Click the transaction to expand the options, then tap the Match radio button.
You will see the Find other records button from there.
Find the invoice and the other transactions related to the deposit in the Records found.
Select the link next to each record to get more details.
Check the Deposit to field, then select Match.

See this article to learn more about managing bank transactions in QBO: Categorize and match online bank transactions in QuickBooks Online.

Regarding the refund process, this article will help you record them: Record a customer refund in QuickBooks Online

Let me know if you have any other questions or concerns. I'll be right here should you need further help. Have a good one!

sgmken · ‎February 25, 2021

Hi Jen,

Thank you for the reply. I think I understand.

But what about the next deduction that has the refund, plus a few other sales attached to it. Same process?

2/22/21 - Deduction from checking account to cc company to refund above customer:

-$807.29 deducted from checking account, which reflects the following:

1. -$990 refund back to Steve

2. $99.00 payment received from Patricks Purchase

3. $99.00 payment received from Eugenes Purchase

4. $6.97 cc fees

ShiellaGraceA · ‎February 25, 2021

Thanks for getting back to us here, @sgmken.

Yes, you can follow the same steps that my colleague has provided to record these transactions. That way, you'll be able to match them with your downloaded transactions.

Here are the guides for details:

Additionally, feel free to browse this link here if you need help with other tasks in QBO. It has topics with articles that'll guide you through the process.

Drop a comment anytime if you still have questions or concerns with credit card transactions. I'll be around for you. Stay safe and have a good one.