Supplier Refund

Hi emma11

Thanks for posting on the Community. Recording supplier refunds in QuickBooks Online can be tricky, but we've broken this down below so that you can reconcile the payments with the transactions in your online bank:

Part 1: Enter a credit on the suppliers account 

(Note: if you recorded the transaction as a Bill in QuickBooks, select Make Payment and enter the full amount paid in the 'amount' field to automatically create the unapplied credit on the suppliers account). 

1. Select + New > Supplier credit.

2. Choose the supplier and the category/account that you selected on the initial expense.

3. Enter the overpayment amount refunded by the supplier.

4. Select Save and close. 

Part 2: Record the refund from the supplier:

1. Select + New > Bank deposit.
2. In the Account dropdown menu, choose your bank account. 
3. In the Add funds to this deposit section:
- Received from: Select the supplier who gave you a refund.
- Account: Select Creditors.
- Enter the amount. 
4. Select Save and close.

Part 3: Match the supplier credit to the refund to clear the balance on the suppliers account

1. Select + New.
2. Select Cheque.
3. In the Payee dropdown, select the supplier.
4. Look for the Deposit and Credit on the right-hand panel, select Add (or tick if these are listed on screen).  The 'amount paid' should show 0.00. 
5. Select Save and close.

The supplier refund has now been recorded, and you can match this to the deposit on your banking screen. 

Thank you. I have followed your instructions to the letter.  My supplier account is now zero and I have matched the deposited cheque.  The original payment is still showing on my banking page and when i click on it it says that it has only partially been matched and that an amount of £30.72 is still is still remaining out of total payment.  Where did i go wrong?

Hi emma11, thanks for following those steps. Was the original purchase entered using a bill or an expense transaction in QuickBooks? If you entered this as a bill, please locate the bill and open the payment (click on the link for '1 payment' made in the top-right corner of the bill, and then the date on the pop-up that appears to open) to check for any payments that may have been automatically applied under 'outstanding transactions'. 

The original purchase was entered as a bill. When I click on the '1payment' as instructed it shows them both (there were two receipts) paid in full.

Thanks emma11, please click here to begin a live chat - this way, we'll be able to set up a secure screen share to view this with you.