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Experienced Member

Refund from supplier against inventory asset

Hi, 

 

I am new to QBO and one of our "class" is poultry. So we paid the supplier for 25,000 units. (Purchase order > Bill > Pay bill). a sum of 1241 USD was paid to the supplier. The supplier only delivered 24,000 units and hence we now need to adjust the inventory and claim the refund in shape of account receivable from the supplier. 

 

Please help me ge this sorted. 

 

thanks 

 

Ps. I do not have any creditor/debtor accoutns set up. also, I dont have any sub accounts of the suppliers 

3 Comments
QuickBooks Team

Re: Refund from supplier against inventory asset

Welcome to the QuickBooks family @harrisch!

 

Thank you for posting in the Community. I’d be more than glad to help you record a refund from your supplier in QuickBooks Online.

 

The first thing we need to do is link the vendor refund check to a vendor credit. You'll have to enter the vendor refund using a bank deposit. Then, you can proceed with linking it to the vendor credit.

 

Here’s how to enter the vendor refund check in the Deposits screen:

  1. Select the Plus icon (+), then Bank Deposit.
  2. In the Add other funds to this deposit section, fill in the following fields: 
    Received from: Select or enter the vendor name.
    Account: Select the Accounts Payable account.
    Amount: Enter the check amount.
  3. Select Save and close.

Next, link that deposit to the vendor credit:

  1. Select the Plus Icon (+), then Expense or Check.
    (Note: Both Expense and Check recognize and record expenses. When you use Check, the transaction adds to the list of checks that you can print.)
  2. In the Choose a payee drop-down, select the vendor name.
  3. Leave the Reference / Check #, Date, Amount and Memo fields blank.
  4. From the Add to Expense or Add to Check section, select Add for the outstanding vendor credit and deposit.
  5. Select Save and close.

You can also check this article for more details: Manage Vendor Credits.

 

Feel free to post again if you need other help. I’m just a post away!

Experienced Member

Re: Refund from supplier against inventory asset

Hi, 

 

Thank you for the reply. However, I had already tried this solution but it didn't work for me or I should say, I didn't quite get it.

 

the vendor was issued a PO of 1241 USD for 25000 qty of inventory asset

we paid cash via bill > bill payment 

 

I was later told that the store has received only 24000 units thereby creating an account receivable from the vendor. 

 

 

QuickBooks Team

Re: Refund from supplier against inventory asset

I appreciate your prompt response, @harrisch.

 

Allow me to join this conversation and provide some details about creating a refund from your supplier against inventory asset.

 

You'll need to create a vendor credit worth 1000 units in quantity to record the undelivered supply from your vendor. This way, you can apply the credit into the next bill or make a deposit if the vendor will refund the amount.

 

Here's an informative article that you can refer to about paying bills using a vendor credit and creating a deposit for returned items: How do I handle vendor credits and refunds?

 

This should get you on track.

 

Please let me know how it goes or if you have any other concerns with QuickBooks Online. I'll be around to help you out. Have a good one.