When you process a customer Refund and credit the money back to their credit card, it’s possible that your refunds were higher than your sales that day. As a result, your merchant services daily batch total is negative.
Currently, there’s no way to create a negative deposit in QuickBooks Online. Here is the workaround:
- To clear the Refund out of Undeposited Funds, check off all the transactions for the day.
- Scroll down to the bottom of the deposit screen.
- In the Add Funds to This Deposit section, select the bank account where the money was pulled from, then add the amount that was withdrawn from the account (but make it positive).
- This zero-dollar deposit clears out (debits) Undeposited Funds and deducts the money from (credits) the bank account.
Hopefully, you won’t have many days where you refund more than you made that day in credit card sales. When you do, now you’ll know how to get rid of that pesky negative sale.
To watch me demonstrate this technique, check out my Bookkeeping’s Tricky Situations course at http://royl.ws/QBOtricks.
