The Gazelle | QuickBooks Online integration pulls transaction details from batched Stripe payouts (which include both payments and refunds) and pushes these transaction(s) to QuickBooks. Here is how we handle this:
When you issue a refund through Stripe, Gazelle will create all the adjusting transactions that need to be made in QuickBooks in order to balance your books and comply with generally accepted accounting principles (GAAP). But there are some additional steps your accountant will probably want to take:
In QuickBooks: Gazelle records this transaction as a refund receipt. This will debit your 'Undeposited Funds' asset account so your accountant can match all the transactions associated with this Stripe payout with the corresponding deposited amount reported on your bank register.
In QuickBooks: You will need to ask your accountant to manually adjust the QuickBooks refund receipt so it debits the appropriate QuickBooks customer record.
NOTE: Stripe refunds do not always tie back to a customer in QuickBooks so there is a chance this transaction might already be tied to a customer, there is also a chance it will need to be manually adjusted.)
(Optional) - In Gazelle: You might consider making a note on the Gazelle customer file (or on the Gazelle invoice itself) indicating that this invoice was refunded in QuickBooks and for future reference also consider linking back to the QuickBooks refund receipt transaction ID for future reference.
NOTE: If a refund has been issued, we don't recommend deleting a previously paid invoice in Gazelle (we also don't recommend deleting a payment in Gazelle that has already cleared your bank. Deleting or adjusting previously cleared transactions will cause bookkeeping challenges and will most likely create extra challenges for your CPA as they try to unravel the bookkeeping mess it causes.
If you have questions about this, ask your accountant for advice.