returned credit card receipt

Rhiannon Watt
Rhiannon Watt Member Posts: 1
edited February 2017 in Accounts Hosted
A credit card payment was processed against a customer invoice and cleared through to the bank account.
The bank statement was reconciled and the receipt applied to the invoice.

A week later, the bank has reclaimed the funds from our bank account due to the customer thinking fraud had occurred on her card.

How do I process this entry in Quickbooks, to:
1. Impact the bank correctly; 
2. Reverse the applied/ received receipt on the customers sub ledger; and
3. Ensure the customer invoice is now unpaid.

Cheers,
Rhiannon

Comments

  • Adrian_6974554
    Adrian_6974554 Member Posts: 191 ✭✭
    edited February 2017
    Create a new item for the Bank reversal and allocate it against the bank account, no tax code (if you use a tax code then only a net amount will appear in the bank account which you do not want to).

    Create a new invoice using the bank reversal item.

    This will leave an invoice outstanding to be paid again and also will create the withdrawal from the bank account.

    Things to think about.

    Date of the invoice - Can be dated back when the original invoice was created so due terms are correct. This then effects the date when the funds are returned to the bank account.
    Date the invoice the date for the refund, this will then not have the due date correct for payment date.

    This does not effect the GST. If on an Accrual basis then no need to worry.
    If you are on a cash basis the GST is already thought to have been allocated the the BAS from the original payment on original invoice. So depending on how large the GST amount is, timing of the end of the BAS end period, and how soon you will receive the payment back again, as to whether you want to do further entries to then adjust for the GST. 


    Adrian