How to handle vendors refund received.

[Trevor1511]

I recorded a purchases as an expense from MKStudio (eBay seller) and they informed me that they were out of stock and did not know when new supplies were due is, so they offered me a refund.  The refund arrived, but I am not sure how to enter this, as the refund is through my bank account link.  

I read the articles on this but they confused me even further.  As they talked about it being a bill and not an expense and they talked about creating a vendor credit which confused me a lot.   Is there a video tutorial on how to handle this. 

[AlcaeusF]

Welcome to the Community, @Trevor1511.

I can share some clarifications about how you can record the transactions in QuickBooks Online.

Since you already entered an expense, you can proceed with adding a vendor credit to record the refund and match it to the bank deposit. This way, the system will recognize the refund sent through your bank account link.

We can start with entering a supplier credit for the refund. Here's how:

1. Go to the Plus (+) icon at the upper right. 
2. Select Vendor Credit.
3. Below the Item details section, add the product or service details. 
4. Enter the necessary information.
5. Click Save and close.

Once done, you can enter the supplier refund using the Bank deposit feature. You can follow these steps:

1. Go to the Plus (+) icon at the upper right. 
2. Select Bank Deposit.
3. In the Add other funds to this deposit section, select the supplier name in the Received from column.
4. Select the Accounts Payable account in the Account column.
5. Enter the refund amount in the Amount column. 
6. Click Save and close.

Next thing to do is link the deposit to the supplier credit by performing the steps below: 

1. Go to the vendor's transactions list.
2. Open the existing expense. 
3. From the Add to Expense/Cheque section, click Add for the outstanding bill and supplier credit. 
4. Click Save and close.

Right now, a video tutorial of the process is still unavailable. In the meantime, you can check this article about recording a vendor refund: How Do I Handle Supplier Credits and Refunds?. 

This will get you going, @Trevor1511. If you have other concerns, please let me know. I'll always right here to help.

[office136]

Hi, thanks for the info on handling vendor refunds. I have a refund from the council that i am trying to process. Unfortunately I get to the last step the system tells me "This transaction is matched to a downloaded transaction. If you want to change the account, you need to unmatch the transaction first."  Can I delete the original transaction from the side menu in the Supplier list view, or should I go to the account history section?

cheers

Linda

[Lucas - Product Champion]

Hi Linda, 

In that situation, rather than deleting or unmatching the expense, you can simply create a new Expense and then add the Deposit and Credit amounts after you have selected the Payee - this will close both of those transactions and record the refund to the supplier in the same way. 

1. Click on the '+ New' button in the top left of your company
2. Select Expense under the Suppliers menu
3. Set the Payee to the supplier that you are refunding
4. Add the Deposit and Credit transactions that you created earlier
5. Select Save and Close

Feel free to reply in this thread if you have any other questions!

-Lucas