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Level 1

Supplier refund and Credit

I over paid an invoice which created a credit amount on the suppliers account. The supplier refunded the difference to my bank account which I can`t match to the supplier to clear the credit amount. Help appreciated!

QuickBooks Team

Supplier refund and Credit

Hi Flixton, you can match this to the refund in your bank by following the steps below: 


1) Click + New > Bank Deposit
2) Select the correct bank account on the top left corner, and the date when the money hit your account

3) Scroll to 'Add funds to this deposit' and set the 'Amounts are' to 'No VAT'
4) Under Received from choose the correct supplier, under Account choose creditors, enter the refund amount & save
5) Go to the Supplier's page and select New transaction > Cheque
6) Tick the deposit against the credit payment and save

7) Match the deposit against the transaction on your banking screen 


Get back to us below if you have any Q's. 👩‍💻

Level 1

Supplier refund and Credit

I’ve tried this and it comes up with a error of: I must set a transaction amount, which doubles the payment 

QuickBooks Team

Supplier refund and Credit

I appreciate you for going through the steps shared by my colleague above, Flixton.


I'll make sure you'll be able to match the deposit to your supplier credit. All you have to do is to record a bank deposit and post it to Creditors account (Accounts Payable A/P). This way, you'll be able to match it on your Banking page. Let me show you how.


  1. Go to the + New menu in your QuickBooks Online (QBO) account.
  2. Select Bank deposit.
  3. From the Account drop-down, choose the account you want to put the money into. 
  4. Then go to the Add funds to this deposit section.
  5. In the RECEIVED FROM column, select your desired supplier.
  6. From the ACCOUNT COLUMN, select the Creditors account (Accounts payable).
  7. Enter the amount of the refund in the AMOUNT column.
  8. In the Amounts are field, select NO VAT (not inclusive/exclusive). 2.PNG
  9. Review details and select Save and close.


Then, match the deposit on your Banking page.


  1. Go to the Banking or Transactions menu.
  2. Click the Banking tab.
  3. Select the tile for the account you want to review.
  4. Go to the For review tab and match the transaction2.PNG


You can also utilize this article for more details about the process: Record a customer refund or supplier refund in QuickBooks Online.


Once you're all set, you might want to check out this link for guidance in reconciling your accounts seamlessly: Reconcile an account in QuickBooks Online.


If there's anything else you need help with about deposits and refunds, let me know in your reply. I'm always here to back you up anytime!

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