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QuickBooks for Mac: Handle refunds on invoices paid by credit card

 This article describes how to enter refunds for invoices paid by credit card.

Detailed instructions
  1. Choose List > Item List.
  2. Click the Actions drop down at the bottom of the window and then choose New.
  3. Click the Type drop-down arrow and choose Payment. Create a payment item named "Credit Card Refund" or similar.
  4. Select either Group with Undeposited funds or Deposit To [your bank account].
  5. Create a credit memo for the customer. Enter the items being returned.
  6. On the last line, enter the payment item "Credit Card Refund" that you created in step 3.
  7. In the Rate field on the same line, enter the total of the credit memo as a negative amount. It's important that a minus sign (-) is inserted in front of the rate to zero-out the credit memo.

  • If you chose Group with Undeposited funds when setting up the payment item in step 4, this will offset to the Undeposited Funds account, and therefore will appear in the Payments to Deposit window as a negative amount.
  • If you do not offset the negative amount with a positive deposit, you will see the warning message: "You cannot record a negative deposit." This negative amount needs to be cleared by making a deposit with a higher positive dollar amount.
  • If you chose Deposit To [checking] when setting up the item in step 4, the negative amount will appear in you checking/bank account that you chose in step 4.
  • Click Save & Close to complete the transaction.

KB ID# HOW12128
3/28/2017 6:26:00 PM
QYPPRDQBKSWS09 9138 Pro 2017 1c38e7