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Level 1

Vendor Expense Refund

I have my bank accounts linked with QBO. Our insurance (vendor) refunded a an EFT payment that has already been recorded. Meaning I already entered that expense and matched that transaction to the debit from my bank account. How do I now record the refund (eft) and how do I match that transaction? Do I create a vendor credit and then match the refund to that? Thanks!

4 Comments 4

Vendor Expense Refund

Hi leamber22, 


Thanks for posting in the Community!


Yes, we can create a supplier credit to record the refund received and match it to the bank deposit. Let me show you how to do this in QuickBooks Online. 


First thing to do is to create a supplier credit.


  1. Click on the + New button and select Supplier credit
  2. Enter the necessary information.
  3. Select Save and close

Once done, you can enter the supplier refund using the Bank deposit. Here's how: 


  1. Click on the + New button and select Bank deposit.
  2. Select the Account and Date of the deposit. 
  3. On Add funds to this deposit, select the supplier name in the Received from column.
  4. Select Accounts Payable account in the Account column.
  5. Enter the refund Amount.
  6. Select Save and close.


Lastly, link the deposit to the supplier credit by following these steps.


  1. On Expenses tab, select Suppliers
  2. Select the supplier name.
  3. Open the expense you've recorded for the EFT payment. 
  4. From Add to Expense section (located on the right side), click on Add for both Deposit and Supplier Credit
  5. Then select Save and close.

Once done, you can match the recorded transaction to your downloaded bank feed. For more detailed information, you can check on this article: Categorise and match online bank transactions in QuickBooks Online


Let me know if you need any help with recording a supplier/vendor refund. I'll always right here to help.

Level 1

Vendor Expense Refund

Thank you for responding.

It won’t let me add the. vendor to the “received from”  It says it needs to be a customer. It was also returned to a debit card that is a sub-account of my bank account. I’d like all the steps from credit, deposit, matched transaction please and thank you. 


Vendor Expense Refund

Thanks for your response, leamber22.


When creating a bank deposit, you can select either a customer or supplier on the Received from drop-down menu. In your case, since this is a refund from a supplier, you'll need to select a supplier name on the list.


Let's try to do some browser troubleshooting to get rid of the error you're getting by logging into an incognito window. If you're using Google Chrome, press Ctrl+Shift+N and then login to your QuickBooks Online account. Once login try to create a bank deposit and select the vendor/supplier name. 


For more detailed information, you can check on this article: Enter a refund from a supplier. Bank transaction will show as Records found on the Banking page if the details on it matches with the bank deposit manually entered in QuickBooks Online. If the match found is correct, simply click on Confirm


As always, feel free to drop a comment below if you need further assistance. Thanks. 

Level 1

Vendor Expense Refund

What I did was just create a Vendor Credit for the amount returned and QBO matched it for me. Thank you for helping. I appreciate it and I’ll keep these notes. 
I do have another question that I will post.