Notes on Reversing Receipts of Specific Payment Methods

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When you reverse a sales receipt, the reversing receipt created is a return receipt. The amounts taken in payment on the original receipt are returned as change (on paper) to the customer as credits on the return receipt. In this way, the accounting is automatically corrected along with the other changes you make on the receipt. The following are brief descriptions of how reversing a sales receipt of specific payment methods, and then creating a new corrected receipt are handled. Reversing a return receipt works the same way but the payment and change (credit) amounts are the opposite.

Cash: The reversing receipt (return) shows the original payment returned to the customer as cash change. Record payment on the new corrected sales receipt as cash as well. If there is a difference between the amounts on the two receipts, you will need to handle collecting or refunding from/to the customer according to your store policy.

Check: The reversing receipt (return) shows the original payment returned to the customer as change by check. Record payment on the new corrected sales receipt by check as well. If there is a difference between the amounts on the two receipts, you will need to handle collecting or refunding from/to the customer, changing the amount of the check, or getting a new check according to your store policy and legal requirements in your area.

Credit Card: The reversing receipt (return) shows the original payment returned to the customer as change by credit card. If you use the QuickBooks Desktop POS Merchant Service, this receipt will automatically be sent to the card processor as part of the next settlement batch. This will result in a credit on the cardholder's account. Record payment on the new corrected sales receipt by the same credit card, authorizing and updating the charge by manually entering the card information, if necessary. This new receipt will also be sent with the next settlement batch, resulting in a new charge on the cardholder's account. If you do not use the QuickBooks Desktop POS Merchant Service, follow the same procedure but use the third-party processor's instructions for handling the card credit and new authorization. For more information, read canceling and reversing credit card payments. Reversing credit card receipts processed through Point of Sale is limited to 60 days after the sale.

Debit/ATM: Reversing a debit receipt does not create a credit back into the customers bank account. When you reverse a debit receipt, the change is automatically assigned to cash. If you want to return the money to the customer by another method, create a return receipt instead and choose the payment method. Then create a new, corrected receipt.

Gift Card: If you use the QuickBooks Desktop POS Gift Card Service and reverse a sale paid by gift card, Point of Sale automatically connects to the Gift Card Service servers and adds the original payment amount back to the card balance. The refund amount is placed in the Gift Card Purchase field on the payment screen. If you reverse a receipt which originally sold (added value) to the gift card, reversing it deducts the reversed amount from the stored value of the card. If not using the QuickBooks Desktop POS Gift Card Service, the reversing process is the same, but youll have to use the procedure outlined by your service to add/deduct the value back to the customers card.

Gift Certificate: The reversing receipt (return) shows the original payment returned to the customer as change by gift certificate. Record payment on the new corrected sales receipt by gift certificate as well. If you track gift certificates by number, enter the same number as the original certificate. If there is a difference between the amounts on the two receipts, you will need to handle collecting or refunding from/to the customer according to your store policy and legal requirements in your area.

Account Charge: The reversing receipt (return) shows the original payment returned to the customer as an account credit. Record payment on the new corrected sales receipt by account charge. Both receipts are sent to your QuickBooks Desktop financial software, and any difference between the receipt amounts is reflected in the customers new account balance after credits are applied to invoices in QuickBooks Desktop.

QuickBooks Desktop Financial Software Users: In all cases, both the reversing (return) receipt and the new corrected receipt will be sent to QuickBooks Desktop as part of the next Financial Exchange, thus automatically updating your accounting records accurately.

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