Refunds and Credit Memos

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Introduction

Out of the box, Cloud Cart Connector is preconfigured to sync refund receipts.

How do I configure refunds?

To configure settings, login to your Cloud Cart Connector account. Select your existing connection, then click Configure. Next, on the global settings page, scroll down and click on the "Refund" drop down. Here, you will see the following settings:

Name Function
Create Credit Memos in QuickBooks Instead of refund receipts, Cloud Cart creates credit memos.
Create Refund Receipts in QuickBooks Default behavior. Create refund receipts for canceled orders.
Create Original Order in QuickBooks, if Canceled or Missing Default behavior. If Cloud Cart has a canceled order with no match, Cloud Cart will sync the original order and create a refund for it. You cannot cancel an order without a matching order.
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. 


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How Does Cloud Cart Connector 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, Cloud Cart will sync the order.
  • Cloud Cart Connector tries to match the order number to an existing order in QuickBooks.
  • If Cloud Cart 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:

Matching 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:

  1. On August 1, Joe Smith make order 123.
  2. On August 11, Joe Smith's order is fully refunded.
  3. You run the sync from August 11th to current day.
  4. 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.

 

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