Overpaid a bill and supplier refunded credit card

Hi kketchum,

It's always great to hear from our QuickBooks Online members. There's a simple way to record a refund in your QuickBooks Online account. I can let you know how to enter this.

To record a supplier refund, use the + New button to record a Credit card credit since the amount was refunded to your card. You should be able to match the credit within the banking feed. If you're unable to find a match, exclude the transaction from the bank feed. Select the checkbox by it, and hit Exclude. The only difference this will make to your books is that the transaction won't automatically be checked off during your monthly reconciliation. If you'd like to learn more, check out this article: Enter a refund from a supplier.

If you have any questions about the process, let me know. Have a good evening!

I already did the new credit card credit.  It's the next steps I'm confused about.  Which banking feed are you referring to when you say I should be able to match the credit within the banking feed?  Since it's a credit card, why would it show up on the bank feed?  

And what I'm really trying to figure out is how to clear the credits that has created for this supplier.

Thanks for messaging back for clarification. When I said it would match with the bank feeds, that's if you have your credit card account connected.

Your credit card credit should have accounts payable for the account. Review this article if you're looking for more details: How do I handle supplier credits and refunds? You can follow these steps for applying for the credit:

1. Select + New.
2. Select Cheque.
3. In the Payee drop-down, select the supplier name.
4. Leave the amount field blank.
5. In the Add to Cheque section, select Add for the outstanding bill and credit.
6. Select Save and close.

You can let me know how that goes for you.

Hi Kerri:

I just had the same issue come up. Hopefully this works for you.

You already issued the credit card credit, therefore you don't require the second one, so you can delete it.

1) I applied the credit card credit to accounts payable.

2) Then I went back to the most recent bill paid for that supplier and the credit card payment showed up directly below the original payment under outstanding transactions, and I selected that line and saved the transaction. It got rid of the credit. Hopefully I can duplicate this in the future! Good luck with your solution.