How does Connex for QuickBooks Desktop sync refunds?
Connex can sync refunds as credit memos or refund receipts. The credit memo setting is automatically turned on when a new connection is configured in Connex.
To access the Refunds menu in the Connex account, click the manage button next to your Selling Channel name. Expand the Sync Orders to QuickBooks Menu -> Refunds Menu, as shown here:
Credit Memo: If a customer has not yet paid, the credit memo will reduce what’s owed. If payment has already been made, the customer can either apply the credit to future purchases or request a refund. Connex will create a credit card refund and deposit the amount into undeposited funds. You can configure Connex to create a refund by check and use an asset account.
When a credit memo is created, QuickBooks will debit (lower) the revenue tied to the items you are refunding. Unlike a refund receipt, the system will credit (lower in this case) your accounts receivable, not your undeposited funds account.
Credit Card Refund: These refunds appear in undeposited funds. A refund receipt reflects a refund that you gave to a customer. In many cases, refund receipts will be used to document credit card refunds.
When a refund receipt is created, QuickBooks will debit (lower) the revenue tied to the items you are refunding. The system will also credit (also lower in this case) the bank account or undeposited funds account that is used for batching payments.
How should I match sales to deposits?
There are two ways to match deposits:
- All sales and refunds appear in the undeposited funds account. You can select the sales and refunds that match the deposit. This setting is enabled by default. If you have a low order volume and a single payment processor, then this is the recommend way to match deposits.
- You can deposit sales and refunds into separate asset accounts. You can create a deposit manually, instead of selecting several sales. This setting is ideal, if you have multiple payment processors. If you had Stripe, PayPal, and Authorize.NET, we recommend using different deposit accounts. For more info, read this guide.
How do I configure refunds?
Here are the settings:
|Connex Setting||Result in QuickBooks|
|Create Credit Memos in QuickBooks||Creates a credit memo for refunds. This setting is enabled by default.|
|Create refund from credit card||Open a credit memo and click use credit to give refund. This will refund the amount to the credit card and create a refund in the undeposited funds account. This setting is enabled be default. Here is an example refund.|
|Check bank account||On the top right of the check, this setting controls the check bank account.|
|Create refund from check||Creates a check for refunds in an asset account. This setting is used to deposit refunds into an asset account, instead of undeposited funds.|
|Credit memo A/R account||The A/R account used for credit memos.|