How it Works - Refunds

= Live

🟡 = Testing in progress

Scenario	Expected Behavior	Functional?	Tax?
HB Finance - partial instant refund	Creates a refund receipt in QuickBooks and a separate transaction in the bank feed to match to the refund receipt	✅	🟡
HB Finance - full instant refund	Creates a refund receipt in QuickBooks and a separate transaction in the bank feed to match to the refund receipt	✅	🟡
HB Finance - partial refund (after bank posting)	Creates a refund receipt in QuickBooks and a separate transaction in the bank feed to match to the refund receipt	✅	🟡
HB Finance - full refund (after bank posting)	Creates a refund receipt in QuickBooks and a separate transaction in the bank feed to match to the refund receipt	✅	🟡
HB Finance - full or partial refund of an ACH payment (can only be done after bank posting)	Creates a refund receipt in QuickBooks and a separate transaction in the bank feed to match to the refund receipt	✅	🟡
NON-HB Finance - partial instant refund	Bank deposit in QuickBooks is automatically updated to reflect updated partial payment amount that will hit the bank and match partial payment transaction shown in the bank feed	✅	🟡
NON-HB Finance - full instant refund	Bank deposit in QuickBooks is automatically updated to reflect updated payment amount to $0 since there will be no money hitting the bank, therefore there will be no matching transaction in the bank feed	✅	🟡
NON-HB Finance - partial refund (after bank posting)	Creates a refund receipt in QuickBooks and a separate transaction in the bank feed to match to the refund receipt (5 days later)	✅	🟡
NON-HB Finance - full refund (after bank posting)	Creates a refund receipt in QuickBooks and a separate transaction in the bank feed to match to the refund receipt (5 days later)	✅	🟡
NON-HB Finance - full or partial refund of an ACH payment (can only be done after bank posting)	Still in testing	🟡	🟡

Refunds with sales tax - Currently all refunds are mapped to the “refunds issued” chart of accounts (selected on the QuickBooks dashboard). We are working to ensure that refunds with sales tax behave accurately in QuickBooks, including coming off of the various reports and liability account. Stay tuned for updates on this. In the meantime, feel free to continue to invoice and refund with sales tax - we will include a guide on how to manage the sales tax in QuickBooks!

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My QB integration is incomplete because the dropdown to associate with refunds is blank. The account should be the same as the account for incoming deposits. How can I correct this?

Hey @Kelly Gilson! Refunds will always be issued out of your bank account, however the dropdown is looking for an income/expense account to record the refund given to. You’ll need to create a chart of account that’s type “refunds” to link in that dropdown.

Thank you! I’m all set.

One more question - is there a place where I can run a report for all refunds with client names and dates?

@Kelly Gilson In HoneyBook - Not specifically for refunds YET but expect some major report improvements coming very soon, including this one For now, the “payments completed” report includes refunds if you export it and filter by status “full or partial refund”.

In QuickBooks I believe there is a refunds report but I am unsure how much client detail is provided!

I have refunds set up in quickbooks under “Other Expense|Refund” but it will not show up as an option on my honeybook set up page. Is this a bug or does it need to entered a different way? The only option to sync for refunds right now is “discounts given” which is obviously wrong.

Hey @MorganPetroskiPhoto!

Can you try setting it as

account type = income

detail type = discounts/refunds given

I have refunds set up in quickbooks under “Other Expense|Refund” but it will not show up as an option on my honeybook set up page. Is this a bug or does it need to entered a different way? The only option to sync for refunds right now is “discounts given” which is obviously wrong.

Refunds is a contra-income account in QB which just means that it is a negative income account not an expense on the P&L. There’s a Help Center article about it too to help you set it up. I’ll also walk you through what you have to do in QB and then back in HB so the set up is complete! https://help.honeybook.com/en/articles/10072810-how-to-set-up-a-refunds-issued-service-item-linked-to-chart-of-accounts-in-quickbooks?q=%240+invoice

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