We received a credit card payment from customer A ($334.00) and sent a credit card refund ($1,000.00) to customer B on the same day. This resulted in a net negative deposit ($666.00) from our credit card merchant provider. How to match a refund receipt and a regular receipt in order to properly match the deposit in our bank account from the bank feed.
QuickBooks Online won’t allow creating a negative bank deposit. If the total deposit is negative, you will need to create a Journal Entry to move the funds from Undeposited Funds to the bank account.
Here’s how to create that Journal Entry and move the funds from Undeposited Funds account to Bank account.
Click the Create (+) at the top of your Home screen.
Choose Journal Entry from the drop down (if you don’t see it, try clicking Show more).
Set the Date of the transaction (same as bank posted transaction date).
On the first distribution line of the Journal Entry:
In the Account column, choose Undeposited Funds.
In the Debit column, enter the amount of the deposit.
On the second distribution line of the Journal Entry:
In the Account column, choose the appropriate bank account.
Set the Credit column to the amount of the deposit.
Click Save and close. This will show a deduction from the bank account in the Bank Register in QBO.
Next, you will want to group the Journal Entry with the payments to create a $0 deposit and remove the payments from Undeposited Funds.
Click the Create (+) at the top of your Home screen.
Choose Bank Deposit from the drop-down.
Select the payments (negative and positive) and the Journal
The entry you just created (the total should be zero).
Click Save and close.
Next, go back to banking center (bank feed). You may see MATCH now for that transaction. If not, click that transaction row for refund receipt. Locate and match transaction from the list there. Save.
QuickBooks Online QBO – how to match negative credit card daily sales receipts | refund deposit
These are the specific steps you can follow in QuickBooks Online (available in plus plan only) if you are donating or giving away tracked quantity on hand inventory items.
Create ZERO Value Sales Receipt for Inventory Items:
1. From the Home Page screen > click Create (+) Sign (top middle bar) > Customers > Sales Receipt and create a Sales Receipt for the inventory item.
2. Choose a customer (name of donating company). Add new if needed.
3. Select Item Donation as your Payment Method. Add new if needed. Optional.
4. For “Deposit to” field, select Add new and create bank category type account. Name it clearing account. (This will create just a zero dollar transaction. You would not have any actual banking transactions in this bank register).
5. In the Product/Service column, click the drop-down arrow to select the product/service you are donating.
6. Change the Rate of the selected product/service to zero so that the total of the sales receipt is zero.
7. Click Save.
8. Click “More” at the bottom. Select Transaction Journal report. This will give you the original cost of the inventory items you are donating. Print as PDF or select export to excel. Do the same for the Sales Receipt.
Next, to account for the original cost of the product/service(s) selected, create a Journal Entry to move the cost out of the Cost of Goods Sold account and into the appropriate expense account (for example, Charitable Donations Expense).
To record this:
1. Click Create (+) sign > Other > Journal Entry.
2. In the Account section, choose the expense account used to track charitable contributions (for example, Charitable Donations Expense).
3. Enter the cost of the product/service in the Debit field.
4. On the next line, click the drop-down arrow and select the Cost of Goods Sold (COGS) account for the donation.
5. The cost of the product/service entered in the field above will populate the Credit field.
6. Click Save.
7. Optional. Attachments (bottom left) for the record. Attach Transaction Journal (that gives you how you got the cost of the donated items) and Sales Receipt.
It really depends upon how they were reported in previous year’s Financial Statement Report.
Let’s take examples and assume the ending bank balance per the bank statement is $11,000. There is also one check you wrote for $10,000 has not cleared the bank yet. In your books, the actual bank balance should be $1,000, right?
Example #1: You have already reported $10,000 as an expense in the previous year’s financial statement.
Since you have already reported, you do not want to expense it again in the current year. You would post $10,000 check as “Prior year” activity, with a prior date. This way, you can put the bank statement’s ending balance and have the uncleared check as outstanding, for the purpose of bank reconciliation.
Example #2: You have not reported $10,000 as an expense in the previous year’s financial statement.
This becomes your current year financial activity when the check has cashed the bank. If you are downloading banking transactions, you would expense it when the bank posted the transaction. In setting up QuickBooks file, the bank balance is $11,000, the same as the bank statement balance.
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A case may occur when a customer wants to apply credit balance to an affiliated company’s open invoice.
Customer (Mark) has a $500 credit balance. Customer (Martha) has a $500 Open Invoice. They like to clear the accounts by applying $500 credit from Mark’s account to $500 Open Invoice of Martha’s account.
One easy way to handle transfer credit from one customer to another customer is to write a Journal Entry in QBO.
Click on the screenshots below to enlarge them
To create a Journal Entry
From the home page screen, click Create+ sign
Click Journal Entry tab under Other heading.
Enter the date.
On the first line, from the Account drop down list, select Accounts Receivable (A/R).
In the Debit field, enter the unapplied amount being transferred. Example:$500.
In the Memo field, note the reason for the Journal Entry. Example: credit transfer to Martha’s account.
From the Name drop down list, select the customer name that credit is being transferred from. Example: Mark
On the second line, from the Account drop down list, select Accounts Receivable (A/R) again.
In the Credit field, enter the credit amount (same as debit amount). Example:$500
In the Memo field, note the reason for the Journal Entry. Example: credit transfer from Mark’s account.
From the Name drop down list, select the name of the customer that the credit is being transferred to. Example: Martha
The final step is to Receive Payment on both customer accounts so that it will show “Paid and Closed” customer status
From the home page screen, click Create+ sign
Go to the Customers tab and click Receive Payment.
Select the customer (example: Mark).
Make sure that the credit and Journal Entry are checked at the left (make no other entry on the Receive Payment form.)
Make sure “Amount received” show zero amount.
Follow the same “Receive Payment” steps as above for the customer (Martha).
Receive Payment (Customer Mark)
Receive Payment (Customer Martha)
Customer Mark’s Page with Paid and Closed Status
Customer Martha’s Page with Paid and Closed Status
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As a general rule, you will use the Equity accounts for one other side entry.
What you have are a possible two options.
If you are transferring, opening balance from all the Balance Sheet accounts (assets and liabilities), use Opening Balance Equity (under Equity type) account. Opening Balance Equity Account will Net out to zero once all the Balance Sheet accounts are transferred.
If on the other hand, certain opening balance accounts (like bank account) are already transferred, then you will need to review further how and where they were transferred. If you see zero balance on Opening Balance Equity Account, might as well directly transfer to Owner’s Draw or Owner’s Equity Account.
For AR opening balance, you will to reenter customer invoices again. Depending upon your accounting method (cash or accrual basis). In general, you will enter Invoice to Income Account on Cash basis; and on Accrual basis, you will enter other side of entry to Equity Account. Make sure to consult with your CPA Accountant or Tax Accountant. Exactly the same procedure also applies to AP opening balance. Journal Entry will not work.
For Inventory Asset opening balance, you will need to use Product/Services feature to enter inventory value and quantity. Journal Entry will not work.
For other Balance Sheet Accounts, couple of options available are to enter, but writing Journal Entry will also work fine.
For Opening Balance date, I prefer to use ending balance date. For example for 1/1/2014, I like to use Ending Balance date of 12/31/2013. Balance amount is still the same.
Same steps are applicable to Income and Expense accounts, especially you are transferring anytime during the year.
A journal entry is to record a transaction in Journal type.
Journal entry is entered with knowledge of debits and credits assigned to specific accounts using a Chart of Accounts. The total of the debits must equal the total of the credits or the journal entry is said to be “unbalanced.”
QuickBooks is a form-based accounting program. It has specifically designed forms to enter each type of transaction. In QuickBooks, incorrect using of journal entry will mess up all kinds of reports. It is better to avoid write a journal entry unless for recording certain specific transactions which cannot be recorded by other designated forms in QuickBooks.
Perfect example to write a journal entry would be for recording depreciation expense or write off certain prepaid expense in QuickBooks. Certain year-end adjustments by auditors are commonly recorded by way of journal entries in QuickBooks.
Example, how to write a journal entry for depreciation expense of $1,000.
Drepciation expense —> Debit —> $1,000
Accumulation Depreciation —> Credit —-> $1,000
Where is Journal Entry form in new QuickBooks Online?