Out of the box, Connex will sync refunds as either a credit memo or refund receipt.
How do I configure refunds?
Refund syncing is enabled out of box. To adjust settings, here are the steps:
- Login to your Connex account.
- Select your existing connection, then click manage.
- Scroll down and click on the refund drop down.
Here, you will see the following settings:
|If order refunded, create credit memos for invoices only||Our software will sync a credit memo for invoices.|
|If order refunded, create refund receipt||Our software will sync a refund receipt for an unpaid invoice or sales receipt. If you want to sync refund receipts for invoices, uncheck create credit memos.|
|Refund deposit account||Each credit memo or refund receipt's amount is removed from an account. By default, this account is the same for orders. Typically, it is the undeposited funds account.|
|Create refunds from credit card and deposit refunds into undeposited funds||For QBD users, creates a credit card refund in QuickBooks. This transaction takes funds out of undeposited funds. A credit memo would put inventory back into QuickBooks.|
|Create refunds using a check and deposit refunds into a bank or asset account||For QBD users, creates a check in QuickBooks. This transaction takes funds out of undeposited funds. A credit memo would put inventory back into QuickBooks.|
What is the difference between a refund receipt and a credit memo?
If you perform a credit card refund, then you should sync a refund receipt. These refunds credit undeposited funds. When you match deposits to QuickBooks sales, the refund will match a refund on the deposit.
A credit memo will decrease a customer's balance. If you create a credit memo, you give the customer a store credit. You can either send them a check or use the credit towards another purchase.
How Does Connex Handle Refunds?
The system will make a refund receipt or a credit memo for invoices with payment.
- If you cancel or refund an order in your order management system, Connex will sync the order.
- Connex tries to match the order number to an existing order in QuickBooks.
- If Connex Connector succeeds, then the refund is created. Otherwise, the system skips making the refund. If there is no matching order, there is nothing to cancel.
Here is an example transaction:
As of July 5, 2016, customers have the option to sync the original order if it is missing. See the settings above this paragraph.
A canceled order negates an order in QuickBooks. If there is no matching order, there is no order to negate. Here is an example:
- On August 1, Joe Smith make order 123.
- On August 11, Joe Smith's order is fully refunded.
- You run the sync from August 11th to current day.
- Since our software only received a canceled order and the order 123 never synced, our software skips to the next refund to process.
Number four makes logical sense. If you created a refund for a non-existent order, QuickBooks would say you owe the customer money.
How do I deposit refunds into a refunds account?
You can map all SKU's from a refunded order to a single item, which has a contra-income account. For instructions, read this guide.
What is the difference between QuickBooks Desktop refunds and QuickBooks Online refunds?