Refunds are synced to QuickBooks Online based on the following scenarios:

Refund in an Open Period

• Standalone Refund
• Refund with Write-off Credit

Refund in a Closed Period

• Refund with Write-off Credit

Open Period Refunds

Standalone Refund

Ordway will perform the following steps in your QuickBooks Online instance following the creation of a Refund (when created without a write-off Credit):

1. Ordway Refund will create QBO Journal Entry

• The Ordway Refund will create a Journal Entry in QBO mirroring the Journal created by the Ordway Refund.
• The Customer name is defined in the Name field of the Accounts Receivable line on the QBO Journal Entry.

2. QBO (refunded) Payment is unapplied from QBO Invoice

• The refunded Payment status will update to ‘Unapplied’ and the Invoice status will update to ‘Open’ to mirror the Open Invoice in Ordway.

3. The QBO (refunded) Payment will be applied to the QBO Journal Entry

4. Once the Payment is applied to the Journal, the final Status of all transactions is as follows: 

• Journal Entry = Paid
• Payment = Closed
• Invoice = Open

Refund with Write-off Credit

In addition to the prior steps, Ordway will perform the following steps in your QuickBooks Online instance when a Write-off Credit is created from a Refund.

5. Sync Ordway Credit to QBO Credit Memo

When Write-Off Refund Amount is enabled on the Ordway Refund, the user is directed to a new Credit that is applied directly to the Invoice that was opened upon refund. That Write-off Credit will create a Credit Memo in QBO.

6. QBO Credit Memo applied to QBO Invoice

• A QBO Payment is created to apply the Credit Memo to the Open Invoice in QBO, as defined in the Applied Invoices section on the Credit in Ordway.
• Note: If automatic payment application is enabled in your QBO instance, this step may be performed automatically by QuickBooks.

Closed Period Refunds

Refund with Write-Off Credit

Ordway will perform the following steps in your QuickBooks Online instance when a Refund and Write-off Credit is created for a Payment that is dated in a Closed Period. 

Note: It is advised that you always create a Write-off Credit following a Refund when the refunded Payment falls in a closed Financial Period to abide by the restrictions QuickBooks places on Payments in a closed Period.

Ordway allows for refunding a Payment in a closed Financial Period as long as the Refund Date is in an open Financial Period, but since QuickBooks restricts an Invoice from being reopened in a closed Period, Ordway will be out of sync with Quickbooks if the user does not proceed with writing off the open Invoice in Ordway. 

1. Ordway Refund will create QBO Journal Entry

• The Ordway Refund will create a Journal Entry in QBO mirroring the Journal created by the Ordway Refund.
• The Customer name is defined in the Name field of the Accounts Receivable line on the QBO Journal Entry.

2. QBO Payment remains applied to QBO Invoice

• The integration will not attempt to unlink the Payment and Invoice, since the Payment is in a closed period it should not be edited.

3. Sync Ordway Credit to QBO Credit Memo

• When Write-Off Refund Amount is enabled on the Ordway Refund, the user is directed to a new Credit that is applied directly to the Invoice that was opened upon refund. That Write-off Credit will create a Credit Memo in QBO.

4. QBO Credit Memo applied to QBO Invoice

• A QBO Payment is created to apply the Credit Memo to the Open Invoice in QBO, as defined in the Applied Invoices section on the Credit in Ordway.
• Note: If automatic payment application is enabled in your QBO instance, this step may be performed automatically by QuickBooks.