I just linked Store Credit to a payment method called “Store Credit”. There’s not really much info on this page about the setup and I’m not sure this has always been an option, because I remember seeing multiple times that it doesn’t sync credits. The pictures do not show the payment method either. QuickBooks Online Setup and Help
On the QBD setup page it just says " * If you enable Sync Store Credit to QuickBooks , you will then need to type the proper items in the QuickBooks Item for Store Credit gifts and QuickBooks Item for new or unmapped Products in a Customer Purchase fields.". Again, not helpful on the actual setup part lol.
Typically “gifts” are other current liability in QB, but you can create a product called “Bad Debt” and link it to your Bad Debt account like we’ve done.
Hoping someone can chime in here, I haven’t enabled the store credit sync because I didn’t know it existed. I didn’t see any announcement about it. From what it looks like, when you create a Store Credit, it creates the credit memo based off the product you linked, not from the payment method. Payment methods in QBO are not sophisticated, not linked to any account, you only have the option of marking as a credit card or not.