United States United Kingdom Australia Canada (English) Canada (French) France Singapore South Africa Global Ireland
cancel
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for 
Search instead for 
Did you mean: 
JenCuevas
Level 1
posted
‎November 04, 2023 04:36 AM
last updated ‎November 03, 2023 10:36 AM

Refund from supplier on ACCOUNT, not a vendor credit or bank deposit

We have a supplier who, when we return an item, will simply give us a refund to our account.  We tend to have an ongoing balance so it just comes off of the balance as a whole.  It is not a vendor credit to be used at a future time.  

How do I enter this?

I need to find a way to do this where it also does not just sit in my accounts payable forever.  

 

Thank you in advance to anyone who has an answer!

Reply
1 Comment 1
JessT
Moderator
Moderator
‎November 04, 2023 06:55 AM

Refund from supplier on ACCOUNT, not a vendor credit or bank deposit

Hi Jen!

 

I'll be helping you through the process of reflecting your vendor/supplier's refund. However, we'll use bank deposit and vendor credit, despite your request, and I'll explain why.

 

To handle the refund, we'll record it as a bank deposit since the payment was deposited back into your account. Then, we'll create a supplier credit to adjust the quantity of the returned items. Finally, we will link the deposit and vendor credit to offset the two transactions, leaving no credits on the vendor's profile.

 

To record the bank deposit:

 

  1. Click + New and choose Bank deposit.
  2. In the Account field, choose the account where the refund is deposited to.
  3. Select the transaction date.
  4. In the Add funds to this deposit section, enter the following details:
    • RECEIVED FROM: name of the supplier
    • ACCOUNT: Accounts Payable (A/P)
    • AMOUNT: amount of the refund
  5. In the Amounts are drop-down menu, select Out of scope of GST, or whichever is applicable.
  6. Click Save and close.

 

To record a supplier credit:

 

  1. In the Supplier field, choose the name of the supplier.
  2. Go to the Item details section and enter the following:
    • PRODUCT/SERVICE: the item/s that was/were paid
    • QTY: the returned quantity of each item.
    • RATE: rate of the item/s.
  3. In the Amounts are drop-down menu, select Out of scope of GST, or whichever is applicable.
  4. Click Save and close.

 

After the two transactions above, we'll link them via an expense transaction to offset their balances, leaving no credits on the vendor's profile. 

 

  1. In the Payee field, select the name of the supplier.
  2. In the Payment account field, select the same bank account above.
  3. Enter a payment date the same as the deposit date.
  4. On the side bar on the right, click Add on both the Deposit and Supplier Credit.
  5. Click Save and close.

 

I'm also adding this article for more refund options, especially when other mode of payments are involved: Handle supplier refunds and credits in QuickBooks Online. Then, you can run a report with supplier totals to see they effect of adding those transactions. Remember that the supplier should not incur a balance or a credit.

 

Let me know if you need more help with your supplier's credit. I'm just right here to continue lending a hand. Take care!

Reply