If you are using QuickBooks Online, and you have refunds that exceed deposits on a particular day, then you will need to record a negative deposit in QuickBooks Online.

If you take credit cards as a form of payment (and hopefully you do by 2017) then you will eventually face the situation where you have refunds that exceed your payments for the day. This is one example of when you will be faced with this situation.

The Bad News:

QuickBooks Online doesn’t actually allow you to record a negative deposit (as of the time this is being written).

The Good News

There is an easy way to work around this issue. In fact you’ll find this technique comes in handy a lot. There are times when using Undeposited funds either doesn’t work, or it gets plain clunky to use.

Other uses

For example, if you are an ecommerce company with many sales channels. Having to clear all of your payments from each sales channel through undeposited funds gets clunky. It is much easier to set up a clearing account for each sales channel. Then push your sales into their respective clearing accounts. Then clear your payments from these clearing accounts into your bank account.

How to Record a Negative Deposit in QuickBooks Online

Use a clearing account.

Book the Refund Receipt “From” the clearing account, instead of Undeposited Funds.

Deposit the other payments from that same day into the clearing account, instead of undeposited funds.

Then record a check for the net negative amount from your bank account to that clearing account.

Finally, check the clearing account, and make sure it zero’s out.

That’s all folks!

Got questions?

Maybe you have a very specific scenario that only applies to you?

Post your comments below!

Maybe I will do a video that answers YOUR question, specifically! Look for that new section on this blog coming soon!

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