Using A Vendor Credit

You've come to the right place for help with using vendor credit in QuickBooks, toddlbs-tx.
 

We can create an account that can be use to process and track your gift card cash transactions. Here's how:

1. Click + New in the left panel and choose Check or Expense depending on how you paid for the certificate.
2. From the Payee ▼ dropdown, select the vendor you got the certificate from.
3. From the Bank account (check) or Payment account (expense) ▼ dropdown, select the account used to purchase the gift certificate (checking, credit card, petty cash, etc.).
4. Select the Category ▼ dropdown to select the gift certificate account for this vendor. If you don’t have an account for the vendor yet, here's how to add one:
   1. Select Add New.
   2. Set the Account Type to Bank and detail type to Cash on hand.
   3. Give the account a name specific to the vendor and its status as a gift certificate account. Example: Joe's Hardware - Gift Card.
   4. Ignore the ▼ dropdown field that says When do you want to start tracking your finances from this account in QuickBooks?
   5. Select Save and Close.
5. Enter the amount of the gift certificate
6. Hit Save.

Once done, we can go through the following article for the detailed steps on how to use the gift card: Record gift certificates purchased from vendors. On the same link, we can find tips on what to do with the account for future gift certificates.

In case you accept payments for a gift card or certificates, we can refer to this write-up: Sell and redeem gift cards or certificates in QuickBooks Online.

Hope I helped you get all straightened out today, toddlbs-tx. Let me know if you have other gift card concerns. Have a good one!

@toddlbs-tx 

I suggest not using the vendor credit function. When you use the vendor credit function, it puts the refund balance into A/P (negative or debit balance) and that balance is waiting to be applied to future bills.  I would suggest creating a bank account called "Big Box Gift Card" and applying the refund to that account.  Then, you can use that account to pay for future purchases from the big box store.