Debit Card Credits in QuickBooks

How to Enter a Debit Card Credit in QuickBooks

Many readers are puzzled about how to enter into Quickbooks, credits they receive when they return a product they purchased with a debit card, and use the debit card for the credit transaction.

When you use a debit card to purchase something, you enter it as a check in QuickBooks that has no check number (you can use a code such as DC for the check number or just leave the check number field blank).

When you get a debit card credit, the same logic applies; the money will be deposited in the bank so the transaction is a bank deposit. You can enter it directly into the bank register, or in the QuickBooks Make Deposits transaction window. Just enter the amount and post the transaction to the account you used when you made the original purchase with the debit card. If the credit transaction takes place after the end of the fiscal year, check with your accountant about how to post it. in QuickBooks. Your accountant may not want you to reduce the current year expense for the posting account and therefore may recommend you create an Other Income account or Other Expense account named Purchase Returns.

Note that if the purchase was for a job and you're doing job costing, the QuickBooks Make Deposits transaction window has a column to note the Customer:Job name – the bank register doesn't offer this field.

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