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Recording refunds

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Refund transactions are recorded as Expenses in QuickBooks Online.

You can select either the Manual or Automated processing mode for recording Refund transactions.

If you turn the Automated mode ON – each new transaction will be
automatically recorded by the system in QuickBooks Online daily.

In the Manual mode – you must initiate recording by selecting (clicking in the checkmark box) one or multiple transactions. After selecting the transactions, click the Submit” button.

You have a choice of recording refund transactions in one of two ways, “Complete” or “Fees only.”  To avoid double recording of the same transaction, once it has been recorded, a green check mark is displayed next to it. This check mark cannot be removed or the transaction submitted for processing to further protect against double entry.

Notification of the successful processing of a refund transaction:

Refund transactions are recorded as an “Expense” in QuickBooks Online:

Let’s review expense (Refund) recorded in QuickBooks Online.

  • The customer receiving the refund is identified as Payee (1). 
  • The System will use the default account (2) set in Settings for processing all PayPal payment transactions.
  • The transaction will be posted on the same date (3) as reported in PayPal.
  • Payment method – PayPal (4).
  • Categories (6) – will use pre-assigned default accounts from Settings.
  • Description (7) – PayPal’s transaction ID will be added for each category.
  • Expense amount (8)
    • A – Revenue amount of sale to be refunded.
    • B – PayPal fees reversed.
    • C – Shipping amount reversed.
  • Customer (9) – is the customer involved in the refund transaction.

Refund is completed.

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