Categories
Vendor Vendor Credit Vendors

I returned items that were ordered for customer job and charged to my bank debit card. They will be refunded back to my bank debit card. How do I enter this credit into QBO back to customer job?

It is kind of hard of believe they do not have designated “Debit Card Credit Form” (or Expense Credit Form), just like one they have for Credit Card Credit Form.

I am not excited to give this way-around approach, but it will work especially recording credit for customer job related return.

#1 create new credit card type account. Call it “debit card clearing account” (or something similar). This has be to under CREDIT CARD Type.

#2 use credit card credit form (create + sign > vendors > credit card credit form). select this newly created “debit card clearing account” just like you select other credit card name when you return products paid by credit card. This will record credit return for the customer job. It will leave with negative balance.

#3 This one is extra step you need to do. GO to “Transfer” form (create + sign > other > transfer).

Tranfer Funds from = Debit Card Clearing Account from the drop-down list

Transfer Funds to = Selection of bank account used for debit card from the drop-down list

With step #3, debit card clearing account will have zero balance. Bank account should correctly reflect deposit amount.

Done. Everyting accounting wise should be work fine.

If you like to see “Debit Card Credit” form (or Expense Form paid by Debit Card) added in future revision, add your voice here. Remember, they make improvements based on your feedback.

From the home page screen > company gear (upper right corner) > your company > feedback

Note: Just for recording debit card credit for return (and if customer job is not relevant), you can go to bank register and enter as bank deposit. Or use Bank Deposit Form (create + sign > Other > Bank Deposit

debit card clearing account

debit card entry using ccc form

debit card transfer

debit card register

Categories
Credit Memo Customers

How to handle a refund to a customer for merchandise not received?

Refund to a customer for PAID merchandise not received?

  • Select “Refund Receipt” as one step process to refund a customer
  • Create + sign > Customers > Refund Receipt
  • Select Customer
  • Select Payment method
  • Select “Refund From” = Bank account if refund by Check (choose Undeposited Funds account if refunded by credit card that will show up in a batch deposit process)

Refund to a customer for UNPAID (OUTSTANDING) merchandise not received?

  • Select “Credit Memo” to reverse Sales Invoice
  • Create + sign > Customers > Credit Memo

Both entries (Refund Receipt and Credit Memo) will also reverse or add back quantity sold to inventory. Inventory is overstated. It needs adjustment.

How to adjust Inventory?

From the company gear (upper right corner) > Lists > Products and Services > Choose Product that need Inventory adjustment > New Product or Service Information screen will open > Select UPDATE button > Enter “New Quantity On Hand” (it will automatically show difference as well) > Save

What will this entry do to Inventory now?

It will reduce “Inventory Asset” account (credit) and will post to Shrinkage account debit side entry. That’s your loss portion from the cost side.

Since “Shrinkage” is a default account, you can leave it as it is or reclassify to COGS or any appropriate account as needed. You will need to write a Journal Entry to do this reclass.