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Enter supplier credits and refunds in QuickBooks Online

by Intuit•66• Updated 2 months ago

How you enter the refund depends on how you record your purchases. Select the section below that applies to you. If you’re not sure, ask your accountant. Or, we can help you find an Accountant.

Supplier credits and refunds record money returned to your business by a supplier. You can enter these transactions in QuickBooks Online to ensure your expense records are accurate and your bank balance is correct. The method you use depends on how you originally recorded the purchase.

Use this method if you recorded the original purchase as an expense or cheque (not a bill).

  1. Select + New or + Create.
  2. Select Bank deposit.
  3. From the Account ▼ dropdown, select the account.
  4. In the Add funds to this deposit section, enter the following details:
    1. Received From: Select the supplier who issued the refund.
    2. Account: Select the same Account used for the original expense.
    3. Amount: Enter the refund amount.
  5. (Optional) If the refund relates to a customer or project:
    1. Tick the Track returns for customers box.
    2. Select the specific Customer/Project.
  6. (Optional) If you are depositing other payments with this refund, select them in the Select the payments included in this deposit section.
  7. Select Save and close.

Use this method if you track expenses using bills and plan to apply the credit to future payments.

  1. Select + New or + Create.
  2. Select Supplier credit.
  3. From the Supplier ▼ dropdown, select the supplier.
  4. Enter the Category details or Item details for the credit as needed.
  5. Select Save and close.

Note: If you select an inventory item, QuickBooks will put it back into inventory. If the item is defective or if you don’t want it added back to inventory, you can make an inventory adjustment.

  1. Select + New or + Create.
  2. Select Pay bills.
  3. Select the bill you want to pay.
    Note: QuickBooks automatically applies the available credit to the bill.
  4. Verify the Credit Applied amount.
  5. Select Save and close.

Use this method if a supplier sends you a refund cheque for a bill you have already paid.

  1. Select + New or + Create.
  2. Select Supplier credit.
  3. From the Supplier ▼ dropdown, select the supplier.
  4. Enter the Category details or Item details to match the original bill.
  5. Select Save and close.
  1. Select + New or + Create.
  2. Select Bank deposit.
  3. From the Account ▼ dropdown, select the account.
  4. In the Add funds to this deposit section, enter the following details:
    1. Received From: Select the supplier.
    2. Account: Select Accounts Payable (A/P).
      Important: You must select Accounts Payable (A/P) to link the deposit to the supplier credit.
    3. Payment Method: Enter the method (for example, Cheque).
    4. Amount: Enter the refund amount.
  5. Select Save and close.
  1. Select + New or + Create.
  2. Select Pay bills.
  3. Tick the box for the bank deposit you just created.
  4. Verify that the Credit Applied matches the deposit amount and the Total Payment Amount is AUD0.00.
  5. Select Save and close.

Use this method if a supplier refunds a purchase directly to your credit card.

  1. Select + New or + Create.
  2. Select Credit card credit.
  3. From the Payee ▼ dropdown, select the supplier.
  4. From the Bank/Credit account ▼ dropdown, select the credit card account.
  5. Enter the Payment Date, Amount, GST, and Category.
    Note: The category must match the original expense account.
  6. Select Save and close.
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