How to Make a Negative Deposit In QuickBooks

How to Make a Negative Deposit In QuickBooks

You can’t. From an accounting standpoint, there is no such thing, as a deposit is money added to the checking account. However, refunds to customers, specifically credit card refunds that are batched with charges that are less than the total amount refunded, is pretty common with some credit card processors and Stripe.

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  1. Record the deposit of just the credit card charge(s) separate from the refund.

  2. Record a credit memo and issue refund using the checking account (QB Desktop) or enter a Refund Receipt in QuickBooks Online (QBO) depositing to the checking account (not Undeposited Funds).

  3. The net amount through the checking account is the “negative” deposit, or the net amount taken out (credited) of the checking account.

Neither of these two transactions will match the one downloaded transaction in the Bank Feeds in QuickBooks Desktop or in Banking in QuickBooks Online. Therefore,

  1. Ignore the transaction in Desktop.

  2. Exclude the transaction in QBO.

While neither will be automatically checked when reconciling the checking account, when both manually entered transactions are checked off, the net difference is the same amount as the amount on the statement, as a credit (like a withdrawal). This can be confusing since the the total amount of deposits on the bank statement won’t match the total amount of deposits and credits in the QBs reconciliation screen.

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Better Solution

Don’t use Stripe. Don’t use just any credit card processor. Use QuickBooks Payments.* You will never have this situation as only positive batches are deposited into your checking account. There are also many other advantages:

  • Great rates. They can either meet or beat your current credit card processor rates.

  • Easier to read statements. You know what rate you are getting for each transaction as the total amount of your customer payment(s) are deposited into your checking account. The transaction fee/rate is charged separately.

  • Convenience. Batch deposits are either recorded with one click in Desktop or done automatically in QBO.

  • You can store your customers’ credit card or bank info in QuickBooks and receive payment with the saved info. You can also have recurring payments automatically done.

  • You can email invoices out of QBs and your customers can pay online, with an even better rate (QBO).

    *I am not an Intuit Premier Reseller so I don’t get any benefit/commission from promoting QuickBooks Payments; however, as a QuickBooks ProAdvisor, I can get preferred rates for my clients. Contact Me to get the best credit card processing rates.

QuickBooks Online Receipts vs. Receipt Bank

QuickBooks Online Receipts vs. Receipt Bank