applying a refund to bill paid with credit card

SGoertzen · ‎July 13, 2023

I paid an insurance bill with a credit card. The supplier overcharged me and then sent me a cheque for the refund.

The cheque shows up in the bank feed, but now I have transactions in two different bank accounts for one bill.

I'm wondering how to enter this properly as a bill payment and refund

Do I use supplier credit?

Thanks!

Alex M · ‎July 13, 2023

Hi there SGoertzen,

It's important that all your transactions are entered correctly for your books to be well balanced. QuickBooks Online is a great tool able to help you keep track of expenses and sales so you know the profit of your company. I can provide some assistance with this overpayment.

One way to do this would be to first create the bill for the amount you should have been charged, and then the payment for the amount you did get charged including the overpayment. What this will do is create a credit by itself on the supplier's account, which you can then deposit to the bank account using the steps in the Deposit a supplier credit when no expense has occurred section of this article. You'll need to skip Step 1: Enter a supplier credit, as this has already been created by the payment larger than the bill.

If you have any other questions, feel free to reach out here.

View solution in original post

Alex M · ‎July 14, 2023

Hi there SGoertzen,

As the remaining balance of the payment is already a balance owed back to you, you have no need to create a supplier credit, as this would be a duplicate. You'll need only these three transactions:

Bill, of the amount that should have been charged to your account
Deposit, affecting the bank account and accounts payable and the supplier in question
Payment, applied to both the above transactions and affecting the credit card account

If you have any other questions, feel free to reach out here

View solution in original post

Alex M · ‎July 13, 2023

Hi there SGoertzen,

It's important that all your transactions are entered correctly for your books to be well balanced. QuickBooks Online is a great tool able to help you keep track of expenses and sales so you know the profit of your company. I can provide some assistance with this overpayment.

One way to do this would be to first create the bill for the amount you should have been charged, and then the payment for the amount you did get charged including the overpayment. What this will do is create a credit by itself on the supplier's account, which you can then deposit to the bank account using the steps in the Deposit a supplier credit when no expense has occurred section of this article. You'll need to skip Step 1: Enter a supplier credit, as this has already been created by the payment larger than the bill.

If you have any other questions, feel free to reach out here.

SGoertzen · ‎July 14, 2023

Hi Alex,

Thanks for your quick response.

So I followed all the steps but something still isn't right. I've attached a screenshot. it's probably easier for you to look at it than me trying to explain. its seems now I have $35 x 3 extra in there now.

SGoertzen · ‎July 14, 2023

Do I need to pay the bill to the credit card not the bank? I was a bit confused on that bit. I paid the bill with credit card but was refunded with a cheque which went into the bank acct not credit card.

Alex M · ‎July 14, 2023

Hi there SGoertzen,

As the remaining balance of the payment is already a balance owed back to you, you have no need to create a supplier credit, as this would be a duplicate. You'll need only these three transactions:

Bill, of the amount that should have been charged to your account
Deposit, affecting the bank account and accounts payable and the supplier in question
Payment, applied to both the above transactions and affecting the credit card account

If you have any other questions, feel free to reach out here

SGoertzen · ‎July 20, 2023

Hi Alex,

So In the vendor profile ( see attached screenshot) I have the three postings- the bill, the bill payment and the deposit I created. But in my bank feed the $35 deposit ( that I actually received from the client) is still sitting there. I can't match it to anything, I've tried the bill, bill amount, the bill payment amount also..

Now how do I get this to link to the deposit slip I created or match to the bill. Also the supplier account it is showing -$70. Any thoughts?

Amanda-B · ‎July 20, 2023

Good evening SGoertzen

Thanks for reaching out to us here. Making sure you get the support you need is important. I would be happy to point you in the right direction for the best assistance.

I feel you'd benefit more by contacting our support team outside of the Community. They'll be able to verify your account details in a secure setting, as well as view your screen to better assist you. You can reach them by following one of these methods:

Schedule a Callback or start a Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.
Social Media: Facebook and Twitter

If you have any other questions, feel free to reach out here.

Topics

Training

Community

Resources

applying a refund to bill paid with credit card