How to Record Disputed Payment in QuickBooks Desktop

The process where the payer receives their money back whenever a transaction is disputed or an unauthorized transaction occurs, that process is known as the chargeback process. In other ways you can say that you will get charged again for the sale. To make sure that the accounting and financial management is correct, it is essential that you enter the details in QuickBooks correctly.

About Disputed Payment

A chargeback is an unauthorized transaction or dispute that results in a transaction reversal that is started by the customer’s bank or payment processor. For accurate accounting and financial management, it is crucial that you enter everything accurately in QuickBooks.

Ensuring the integrity of financial records it is required to verify that the chargebacks are accurately recorded in QuickBooks. Due to their impact on the balance of transactions and potential for refunds, chargebacks can have a big impact on account reconciliation.

Maintaining openness and efficiently recording consumer disputes are only made possible via proper accounting for chargebacks. All companies may identify areas for development, analyze trends, and make well-informed decisions to reduce chargebacks in the future by using this precise documentation in QuickBooks.

How to Record Disputed Payment in QuickBooks Desktop?

You may maintain your books organized and current by using one of two methods of entering a disputed payment in QuickBooks Desktop. The two methods which you can select either are listed below:

1. Recording of the payment as a refund
2. Writing as a check

Recording of the Transaction as a Refund

You can enter a disputed payment through a refund by following these steps:

• First you have to navigate to the Customer menu and then choose Credit Memos or Refunds.
• By clicking on the Job drop menu you have to select the customer for whom you want to get a refund from the Customer.
• In the next step you have to list the goods and services which you wish to have refunded.
• Select Save & Close button in order to save changes and exit successfully.
• Once you successfully complete the above steps the prompt to open the available credit window will appear in front of you on your system screen.
• Now select Give a Refund button and then press the “OK” button.
• Select the method from the Issue window to refund the transaction if requested. This Refund can be made by using the drop-down menu on the Issue a Refund window.
• Additionally, choose the account from which the refund was paid if you pick Cash or Check.
• When you’re done, hit the OK button.

Recording of the Transaction as a Business Expense

This is an additional method of writing a check to QuickBooks Desktop and entering a disputed payment as an expense for the business. Checks are regarded as formal directives to a bank, instructing it to pay the depositor a specific sum of money. They have the reputation of being just as valuable as money.

1. Writing of a Check
2. Regular Check

In QuickBooks Desktop, you can track expenses for fixed assets, inventory, non-inventory parts, services, other charges, and other payments with frequent checks. You could either choose to pay off credit card debt or store the money in a petty account. To write a cheque, take the steps which are listed below:

• Firstly navigate and select the Banking option.
• Select the option Write Checks.
• Now, Select the Expense tab to enter shipping costs, liabilities (should you need to make payments for loans or obligations), and additional costs unrelated to any QuickBooks items.
• Select the desired item from the drop-down list by clicking the Item tab.
• Finally, Select the Save and Close button.

As an alternative, you can continue to keep your invoice unpaid by taking the following actions:

• To access the Customer Centre, navigate to the Customers menu and select it.
• Now, find the customer on the Customers & Jobs page and select them.
• Next, in the Transactions section, choose the Received Payments option from the drop-down menu.
• Now click the payment twice before selecting the Delete option at the top.
• Hit the save and exit button.

Conclusion

We hope the above data of the article recording a despite payment will help you in solving your issue regarding the disputed payment. In case you face any issues then you can connect with our Dancing Numbers team via LIVE CHAT. Our team of experts will help you in solving the issue.

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Frequently Asked Questions

What Entry in the Journal does a Refunded Deposit have?

Modify the Books: You must go back and change the first deposit entry in the books. For the amount of the bounced cheque, this often entails debiting (raising) your accounts receivable and crediting (decreasing) your cash account. Should bank fees apply, they ought to be documented as an outlay.

What goes into a Returnable Deposit’s Journal Entry?

The business should credit the customer deposit liability account and debit restricted cash since a refundable deposit is money that has to be given back to the client at a later time. The client deposit liability account is debited and limited cash is credited upon the consumer receiving their deposit back.

What does the Accounting term “Refund Entry” mean?

First, you will debit the amount of cash paid to the customer from your Sales Returns and Allowances account. Your cash account is then credited. Even while they happen less frequently than credit returns, cash returns do occur, and it’s crucial to accurately record those transactions.

To Record a Return, Which Account is Debited?

As the sales returns and allowances account has the opposite effect on net income, it is removed from sales in the sales revenue part of an income statement. Sales returns and allowances are therefore regarded as contra-revenue accounts, which often have a debit balance.

Do Refunds come with a Credit or Debit?

For example, you obtain a refund if you return an item that you purchased or earn a discount. Your credit card account is credited with the refund amount, which usually shows up as a credit on your statement.