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Supplier refund

Forum|Forum|4 years ago
October 5, 2021
1 reply
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Hi.

In my client's book of accounts, supplier bill was for $4.47 but they refunded $4.99. We have no clue what could be the reason for this overpayment. Could you please help me out about the accounting treatment for the additional amount.

Thank you.

QuickBooks Online

Best answer by JasroV

Yes, you got it correct, Marufa.

I'd be delighted to walk you through the steps in how to account for your supplier refund in QuickBooks Online (QBO). Here's how:

Go to the + New menu.
Select Vendor credit or Receive vendor credit.
Choose a vendor from the Vendor drop-down menu.
Fill in the needed details then click Save and close.
Go back to the + New menu.
Select Bank deposit.
Choose an account from the Account drop-down menu.
Fill in the needed details from the Add funds to this deposit section and select Accounts Payable (A/P) from the ACCOUNT column.
Then click Save and close or Save and new.

Once done, use Pay bills to link the deposit to the vendor credit. You can utilize this link for more details about this process: Enter a refund from a vendor.

Then to account for the overpayment of $.52, you can record it as a credit and link it to your supplier's future bills. To be guided, feel free to check this article: Enter a credit from a vendor.

Furthermore, I'd suggest working with your account or visit our ProAdvisor page to prevent messing up your books. They can guide you on other ways to record this in QBO.

Once you're all set, you might want to read these resources for future reference. These contain details on how to pay your vendors online and match your account flawlessly:

In case you need more help supervising your vendor refund or with your payables, you're always welcome to tag me in your reply. I'll be here to back you up!

S

SarahannC

Level 9

Hello there, @Marufa0013.

I'm here to help and provide ways on how you can handle the overpayment coming from the $4.99 refund amount in QuickBooks Online.

Since the supplier bill was for $4.47 and they refunded your client $4.99, the overpayment will serve as a credit to your client's supplier. They can apply the overpayment in the next transaction of their suppliers.

When recording a supplier's refund, you can link the vendor refund to a vendor credit. Then, enter vendor refund using a bank deposit. Then, you can proceed with linking it to the vendor credit. I've got some articles that you'll want to check for additional information about supplier refunds.

Enter vendor credits and refunds in QuickBooks Online

Please let me know if there's anything else I can do for you. The Community will always have your back. Take care and stay safe.

Marufa0013Author

Thank you very much for the reply.

In that case, will I separate $4.47 as refund and tag it with the bill and rest of $.52 will be adjusted with other bills of the supplier.

Is it what I am supposed to do?

JasroVAnswer

Level 8

Yes, you got it correct, Marufa.

I'd be delighted to walk you through the steps in how to account for your supplier refund in QuickBooks Online (QBO). Here's how:

Go to the + New menu.
Select Vendor credit or Receive vendor credit.
Choose a vendor from the Vendor drop-down menu.
Fill in the needed details then click Save and close.
Go back to the + New menu.
Select Bank deposit.
Choose an account from the Account drop-down menu.
Fill in the needed details from the Add funds to this deposit section and select Accounts Payable (A/P) from the ACCOUNT column.
Then click Save and close or Save and new.

Once done, use Pay bills to link the deposit to the vendor credit. You can utilize this link for more details about this process: Enter a refund from a vendor.

Then to account for the overpayment of $.52, you can record it as a credit and link it to your supplier's future bills. To be guided, feel free to check this article: Enter a credit from a vendor.

Furthermore, I'd suggest working with your account or visit our ProAdvisor page to prevent messing up your books. They can guide you on other ways to record this in QBO.

Once you're all set, you might want to read these resources for future reference. These contain details on how to pay your vendors online and match your account flawlessly:

In case you need more help supervising your vendor refund or with your payables, you're always welcome to tag me in your reply. I'll be here to back you up!

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