Hello Regina:

Hopefully you can help me out. 

Background:

Working with QBO Advanced

There is a Merchant Account.

There is an Income Checking account where merchant batch deposits are records for customers payments.

There is an Undeposited Account.

We create duplicate invoices in QBO and clear them by recording a payment and then of course recording the batch deposits.

There are several ways (scenarios) that a refund can occur via the Merchant's handling / processing of the multiple customer's invoices which they generate and receive payment for. Only one of those scenarios is described below.

Situation:

Invoice created in QBO and cleared (recorded as paid) and then deposited into Income checking account via a batch deposit in month one.

In month two, customer was issued a refund via the merchant.

The source of the funds used by the Merchant for the refund paid back to the Customer was part of a batch deposit received by us.

So I created a Refund Receipt and assigned it to the Undeposited Account.

The batch deposit was then cleared from the Undeposited Account by including the Refund Receipt along with the other customer payments in the batch deposit recorded in the company income checking account.

Problem Encountered by taking this approach:

When clicking on the Customer view and looking at the overview of all the previous transactions, the Invoice, Payment and the Refund transactions all can been seen.

However the Balance showing is a (-) negative amount equivalent to the amount of the Refund issued.

Having researched numerous articles in the community and elsewhere, I suspect that the problem occurs because the issuance of the Refund Receipt results in a new entry into the A/R which has not yet been "balanced" via a corresponding (but opposite transaction).

If this is indeed the "cause" for the negative value in the Customers Balance, do you know of a method to clear that out? I have not been able to figure out how to do that.

Or perhaps there is an entirely different way to resolve this problem . . . .

Thank you Regina.

To those members of the QB support team - please do not reply to this query by inclusion of links to all the standard SOP on how to enter a Refund. I've read them all and I've tried them all.

Yes, perhaps, I need to incorporate one of the various procedures included in those sets of instructions in order to clear out the imbalance. 

I certainly do recognize that the step or steps I am failing to take is included in one of the SOPs. It is a strong possibility. But I have tried every which way addressed in those canned instructions and none of them seem to work based on the specific scenario I've described above.

What I am seeking here in this query are replies from seasoned veterans of QBO who understand the complexities surrounding the circumstances I've outlined above and can offer me a workable solution that I can implement into an SOP for future use.

All suggestions or recommendations will be respectfully accepted and replied to. However, I just don't need to be sent all the existing links on how to issue a refund. Been there done that a hundred times. 

Respectfully Submitted,

mkm