How to Enter A Credit Card Refund in QuickBooks Online?

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How to Enter A Credit Card Refund in QuickBooks Online?

Welcome to the Fit Small Business QuickBooks Online training course! In this lesson, we’re going to cover how to enter credit card refunds in QuickBooks Online.

You can follow along on your own QuickBooks Online account. If you don’t have one already, click here to sign up for a free 30-day trial and follow along below.

To complete this lesson, you can either watch the video below, read through the step-by-step instructions, or do both. Let’s begin!.

If you’d like to learn more about managing income, expenses and reporting in QuickBooks download our free 39 course QuickBooks tutorial here.

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When to Enter a Business Credit Card Refund in QuickBooks Online

When you purchase items using your business credit card, you may need to return something because it was damaged or it just didn’t work out. The vendor will usually process the return using the same credit card that you used to make the purchase. When this credit shows up on your credit card statement, you need to be sure that it is flagged as a credit card refund and that it is coded to the same account you coded the original purchase to.

In this lesson, we will walk through step by step to show you how to correctly enter credit card refunds in QuickBooks.

How Do I Enter a Business Credit Card Refund in QuickBooks Online?

Step 1 – Navigate to the Credit Card Register

From the Home page, click on the Gear icon to the left of the company name and select Chart of Accounts, as indicated below.
From the chart of accounts list, click on the View Register link next to the credit card as indicated

Step 2 – Enter the Credit Card Refund

The Credit Card register will display. From the drop down, select CC Credit as indicated below.

Complete the fields as indicated below to record the return.

Account – From the drop down, be sure that you are in the correct register. If not, select the credit card that you need to enter the credit return for. This is the credit card that the vendor credited the purchase to.
Date – Enter the date that you returned the product.
Ref No./Type – This field is optional. I recommend that you put CREDIT. Below the ref no. field is the transaction type. QuickBooks will put the transaction type that you selected in the above step.
Payee – From the drop down, select the vendor that you returned the product to.
Memo – Include any additional information about the return in this field (e.g. reason for return).
Payment – Enter the cost of the item that was returned.
Account – From the drop down, select the account that the credit for the return should be categorized to.
TIP: It is best practice to use the same account that you categorized the original purchase to for the credit card refund.
Save – once you have completed all of the fields, you can save this transaction.

How Do I Modify (edit) a Credit Card Refund?

If you need to edit a credit card refund that was previously entered, you can do so by following these steps:

Step 1 – Navigate to the credit card register

From the Home page, click on the Gear icon to the left of company name, and select Chart of Accounts as indicated below.
From the chart of accounts list, click on the View Register link next to the credit card as indicated below.

Step 2 – Locate the credit card refund in the register, and make changes

From the drop down, select the credit card that you entered the refund for.
Click anywhere within the transaction to activate the fields that you can make changes to.
Once you have made your changes, be sure to Save them.

Credit Card Credits in QuickBooks Online

Credit Card Credits in QuickBooks Online: Overview

To return something you purchased with your business credit card, you will use the “Credit Card Credit” windows to offset the purchase.

Click the Create icon and select “Credit Card Credit” from the “Vendors” heading. This will open the “Credit Card Credit” page where you will enter the information. This page has the same setup as the “Expense” page.

Select the “Vendor” from whom you purchased the items by using the “Choose a payee” dropdown list. Select the appropriate credit card from the “Choose an account” dropdown list. If you only have a single business credit card, it will already be selected.

Now, choose the appropriate “Account details” or “Item details,” depending on what you are returning. Make sure you enter the same information as when you created the original expense. This will allow the accounts to balance properly.

When you have finished your entries click “Save and close” to save your work and close the page. If you need to process another “Credit Card Credit,” select “Save and new” to close the current page and open a new blank “Credit Card Credit” page.

Credit Card Credits in QuickBooks Online: Instructions

To record the return of an item purchased with a business credit card, click the Create icon and click the “Credit Card Credit” link.
Select the “Vendor” from the “Choose a payee” dropdown list.
Select the credit card from the “Choose an account” dropdown list.
Use the “Account details” section when returning a purchased “Expense” like plane tickets.
Use the “Item details” section when returning purchased inventory items.
This entry should match the original entry when you created the expense to balance properly.
Choose the “Save and close” option from the save dropdown button to save the entry and close the page.

Call Quickbooks Toll-Free Number

+1(855)548 3394