Credit card refunds

Sherry Lynn · ‎January 20, 2022

Okay So I have a vendor who charged our credit card lets say $5000. They billed us for $2000 and I have another invoice sitting on account for $1000. So it looks like this

(5000.00)

-2000.00

-1000.00

So they now owe me $2000 back How do I post this $2000.00 Credit that they gave me on my credit card.

I hope I explained that corretly.

So I have a credit sitting on my account for $5000. and they applied $3000 of it to outstanding invoice that are sitting on account and then send me a refund of $2000.00 to my credit card. So I am not sure how to apply this or post this.

Once I go and take the credit of $5000 and apply to the two invoices it leaves me with a $2000 credit sitting on the account and they sent me a refund but how to I clear this?

Sorry I am explaining in many ways so anyone reading will hopefully understand my task.

Cheers

Sherry

McBrideBookkeeping · ‎January 21, 2022

Hey Sherry Lynn,

This scenario can be frustrating I know but it happens so don't worry, this should help you resolve it.

Like the QB employee mentioned, If you don't' already have a Pro-Advisor on your team I'd suggest you find one you enjoy working with who can help you on demand & remotely if needed.

So this is your Scenario, right? (more or less, I left out some transactions to make it simpler)

A Supplier owes you $1,000, so next

You need to Record the Deposit to "Accounts Payable" with the Name of your Supplier there.
(You can also use a Credit Card Credit instead of a Bank Deposit if the refund went to a CC instead of a Bank)

After that you can sometimes have the Supplier credit and deposit still show as "Outstanding" so we need to "Pay it off" theoretically.

Go to the Supplier Record and Click "Make Payment" Check off both the Deposit and the Credit on the Account, which should leave you with a $0 Payment Now check your supplier Screen and you should see a $0 balance.

I hope this helps get you on the right track

Please mark this answer as a helpful solution if it answers your question
Thanks
McBride Bookkeeping

View solution in original post

Sherry Lynn · ‎January 24, 2022

Thank you so much I totally love what you have showed me here. The only problem is this was a refund done on my credit card. So do you have a way to do this refund to my credit card and then clear the refund from the supplier? because it says i need to attach it to an invoice.

Thanks

View solution in original post

Sherry Lynn · ‎January 27, 2022

Hi McBride,

Okay I figured this out. the only difference is I am using QB ONLINE. So I just had to go to the payment

Click on it and then go to categorize, pick my supplier and then do the category AP but in my memo and hit add. Now I see it under my payables but it will not let me clear it untill I do a payment again on that account.

Thank you for your help

HEHE okay update I clicked on a few bills that I owe and then clicked on the deposit and the credit and then unchecked the bills and it says zero and his save and BAM it worked WOW that a process that is actually so easy LOL

View solution in original post

Trish_T · ‎January 20, 2022

Hi Sherry Lynn,

Thanks for reaching out here. It's nice to see back! QuickBooks Online is a versatile program with the features you need for completing your bookkeeping tasks with peace of mind. It's essential that you're recording the vendor refund accurately to keep your books aligned. I'll be happy to provide the information you need, so you're on the right track with your work.

Recording supplier credits depends on how you've entered the initial purchase. Here's a helpful article to assist you with handling supplier credits and refunds. However, the best course of action would be to reach out to your accountant. If you don't have one, we can help you locate a ProAdvisor in your area.

If you have any other questions, please don't hesitate to reach back out. We're glad to help!

Sherry Lynn · ‎January 20, 2022

Thank you for your reply but the info you send me is for QB Desktop I am using QB online

JamesM4 · ‎January 20, 2022

Hello Sherry. Glad to hear from you again. Could you try to access the link again and let me know if it's showing QuickBooks Online?

Sherry Lynn · ‎January 21, 2022

yes it does today but yesterday the link did not say online. So maybe yesterday their was a clitch.

thanks but this is not what I am looking for. I have $3000 over pd credit sitting in my account I have a bill for $2000 so I use up that $3000 credit toward the bill now I have $1000 credit sitting on my account so the Supplier give me a refund onto my credit card of $1000 How do I apply that refund to the $1000 sitting on my account.?

Maybe I was not explaining properly.

Sherry

Trish_T · ‎January 21, 2022

Hi Sherry,

Thanks for reaching back out. When you record the deposit, it's essential that you select the accounts payable account so you're able to tie the refund to the supplier credit as outlined in Step 2 of this article. However, if you're still uncertain, I recommend reaching out to your accountant for the best course of action. If you don't have an accountant we can help you find a ProAdvisor in your local area.

Please feel free to ask any other questions. We'd be glad to assist!

McBrideBookkeeping · ‎January 21, 2022

Hey Sherry Lynn,

This scenario can be frustrating I know but it happens so don't worry, this should help you resolve it.

Like the QB employee mentioned, If you don't' already have a Pro-Advisor on your team I'd suggest you find one you enjoy working with who can help you on demand & remotely if needed.

So this is your Scenario, right? (more or less, I left out some transactions to make it simpler)

A Supplier owes you $1,000, so next

You need to Record the Deposit to "Accounts Payable" with the Name of your Supplier there.
(You can also use a Credit Card Credit instead of a Bank Deposit if the refund went to a CC instead of a Bank)

After that you can sometimes have the Supplier credit and deposit still show as "Outstanding" so we need to "Pay it off" theoretically.

Go to the Supplier Record and Click "Make Payment" Check off both the Deposit and the Credit on the Account, which should leave you with a $0 Payment Now check your supplier Screen and you should see a $0 balance.

I hope this helps get you on the right track

Please mark this answer as a helpful solution if it answers your question
Thanks
McBride Bookkeeping

Sherry Lynn · ‎January 24, 2022

Thank you so much I totally love what you have showed me here. The only problem is this was a refund done on my credit card. So do you have a way to do this refund to my credit card and then clear the refund from the supplier? because it says i need to attach it to an invoice.

Thanks

McBrideBookkeeping · ‎January 24, 2022

Hey Sherry Lynn,

Yes, Sorry i should have mentioned that, instead of a "Deposit" use a Credit Card Credit and post it the same way. I believe that works but let me know if it doesn't...

Yes I just checked it does work the same and I updated my original Solution for you also. Credit Card Credit & Deposit are quite similar in nature but only work with Credit Cards or Banks respectively.

If it works you can mark that as the answer and the Topic will stay available for others who have the same issue.

Sherry Lynn · ‎January 27, 2022

Hi McBride,

Okay I figured this out. the only difference is I am using QB ONLINE. So I just had to go to the payment

Click on it and then go to categorize, pick my supplier and then do the category AP but in my memo and hit add. Now I see it under my payables but it will not let me clear it untill I do a payment again on that account.

Thank you for your help

HEHE okay update I clicked on a few bills that I owe and then clicked on the deposit and the credit and then unchecked the bills and it says zero and his save and BAM it worked WOW that a process that is actually so easy LOL

McBrideBookkeeping · ‎January 27, 2022

Well Happy Days ! I'm glad you got it working.

Sorry I thought my screenshots would have helped walk you through the process.

Feel free to mark my answer as a solution if it worked so others can see it in future.

& let me know if I need to change anything to make it clearer.

Thanks !

Sherry Lynn · ‎January 27, 2022

Hi McBride,

I am not sure about changing anything, Your screen shots are different from my QB online. So I do not know if you are using something different. that is why I made the comment that I am using ONLINE QB, But I think people can kind of figure out what you are saying today. Just depends on their system.

How do you do screen shots like that? with all the comments?

thanks

McBrideBookkeeping · ‎January 28, 2022

So Weird, I've never seen QBO look any different, maybe you're using the online version of QB Desktop.

Oh well, like you said, it worked out that's the main thing

For screenshots I'm using the very "High tech" program MS Paint lol, just good ole free MS Paint, can't beat it

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