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Level 2

How can I post a refund from a supplier/vendor?

I overpaid a supplier and instead of send credit note, they made a refund for the difference.

29 REPLIES 29
Highlighted
Moderator

How can I post a refund from a supplier/vendor?

Hi accounts,

Let me help you record the refund from your supplier in QuickBooks Online. 

First, we'll need to create a bank deposit to record the refund:

  1. At the top menu, click Create menu (+) and select Bank Deposit.
  2. In the Bank Deposit window, go to the Add New Deposit section.
  3. Under the Receive From column, choose the supplier you overpaid.
  4. Under the Account column, choose Creditors as the affected account.
  5. Enter the refund amount.
  6. Click Save and close.

Then, let's create a bill payment to link the refund:

  1. At the top menu, click Create menu (+) and select Pay Bills.
  2. Click the Filter button, and choose the supplier in the Payee field.
  3. Click Apply.
  4. Put a check mark on the transaction with the refund amount.
  5. The amounts in the Credit Applied the Open Balance fields should be the same.
  6. The amount in the Payment field should be zero (0).
  7. Click Save and close.

That should do it. If you have other questions, just provide any additional information you can. I can help you further if needed.

Highlighted
Level 2

How can I post a refund from a supplier/vendor?

Thanks for your prompt respond.
I could do the first step(create a bank deposit to record the refund) but I could not do the 2 step (create a bill payment to link the refund).

I'll try to make an overview of what I have in my Online QuickBooks.
This is my Supplier account:
Date                            Type                           Payee          Total
20/11/2017              Bill                                 XXX           930.68
17/11/2017              Bill payment                XXX          -1116.82
                                                                                              -------------
                                                                                              -186.14
When I want to start step 2, clicking filter  I can not see the supplier XX in the Payee list. That's the problem.
Highlighted
Moderator

How can I post a refund from a supplier/vendor?

@accounts
Thank you getting back to me.

Let's try checking the deposit to make sure we have the correct affected account. Make sure the affected account is Creditors. You can check the screenshot above.

If the affected account is correct, let's go back to the Pay Bills window and try it again.

Just ping me how this goes, @accounts. I'm here to help.
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Level 2

How can I post a refund from a supplier/vendor?

Hi James,

I've already checked that. The issue is that after going to select pay bills, click filter and then choose supplier it doesn't appear. The reason I think is because the invoice was already paid. How can you pay again that invoice???

 I've already enter another invoice from that supplier. So If I repeat the steps below, its now when I can see the new invoice, but that doesn't help at all.  Imagine that I dont have another invoice.

"Then, let's create a bill payment to link the refund:
At the top menu, click Create menu (+) and select Pay Bills.
Click the Filter button, and choose the supplier in the Payee field.
Highlighted
Moderator

How can I post a refund from a supplier/vendor?

Thank you for the detailed information, @accounts.

We're not trying to pay the paid supplier's invoice, instead, we're going to pay the deposit that we created for the refund. This process will offset the vendor's balance and links the deposit given back by your supplier.

If you have further clarifications, I'd be glad to help you out.
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Level 2

How can I post a refund from a supplier/vendor?

Hi James,

I'm not talking about paying the supplier. I might get you confuse with the previous message. Let's forget the previous message. ok?


Here it is the new response to your previous message.

I've checked that I have the correct affected account. I've tried either  Aged creditors and Lazerbeam Creditor (both liabilities).

Then, I went back to to the Pay Bills window, but it didn't appear the supplier.

Thank you
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Level 2

How can I post a refund from a supplier/vendor?

Hello James,

I hope you are ok. Do you know anything about it ?

Thanks in advance,

Regards.

Marcos Hernandez
Highlighted
Moderator

How can I post a refund from a supplier/vendor?

Hi @accounts,
I apologize for the late reply.

It seems that the refund deposit we created was automatically paid the existing over payment on the supplier's profile. In this case, we just need to make sure the supplier's profile balance is zero (0), and there are no pending open invoices.

I'd also recommend checking this with your accountant to make sure everything is recorded properly. They know what's best for you and your books.

Feel free to post here in the Community again if you have questions. We're here to help.
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Level 1

How can I post a refund from a supplier/vendor?

Hi 

Thank you for your reply.

 

I have QB desktop ( we are moving to online in April).

Does the same process apply ( you have referenced online in your reply)

Thanks

BR007

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Level 2

How can I post a refund from a supplier/vendor?

Can anyone help? I have recieved a credit note from a supplier. I put this onto quickbooks online as a credit then waited for it to appear in the bank. It did, so i then tried to make a bank deposit on quickbooks, but it wouldnt let me add it to the supplier as it said there wasnt an open bill??! so now i have deleted the credit from the supplier and just left the bank deposit, but now what do i do? Is that it, do i actually need to do anything else other than deposit the refund? thanks
Highlighted
QuickBooks Team

How can I post a refund from a supplier/vendor?


Hi Surveyor12

 

What is the supplier credit for, e.g. was it for an over-payment or crediting you for faulty goods?

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Level 2

How can I post a refund from a supplier/vendor?


@John C wrote:


Hi Surveyor12

 

What is the supplier credit for, e.g. was it for an over-payment or crediting you for faulty goods?


neither, it was a refund by a utility supplier. We had overpaid them and had moved to another supplier so this was the balance on the account. thanks

@John C wrote:


Hi Surveyor12

 

What is the supplier credit for, e.g. was it for an over-payment or crediting you for faulty goods?


Highlighted
QuickBooks Team

How can I post a refund from a supplier/vendor?


HI Surveyor12

 

Thank you for your response, just to clarify, you overpaid a utility bill/supplier, you no longer use the supplier and they refunded you the over-payment?

Highlighted
Level 2

How can I post a refund from a supplier/vendor?

we didnt overpay, there was credit on the account and when we moved, they took the final readings, deducted what we owed and then sent us a refund for the remainder, thanks
Highlighted
QuickBooks Team

How can I post a refund from a supplier/vendor?

No problem. To confirm, when creating the bank deposit, did you select the supplier in the received from box, and Creditors as the category?

 

Thanks,

 

Talia

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Level 2

How can I post a refund from a supplier/vendor?

i put in the 'rec from column' the suppliers name, there is no category?
Highlighted
QuickBooks Team

How can I post a refund from a supplier/vendor?

Ah, apologies, it may be named Account on your side - the column just next to Received From.

 

Thanks,

 

Talia

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Level 2

How can I post a refund from a supplier/vendor?

in the accounts column, i selected the utilities sub group Gas - is this what is wrong?
Highlighted
QuickBooks Team

How can I post a refund from a supplier/vendor?

Hi Surveyor12,

 

Yes, the account here on the bank deposit should be the default Creditors account which QuickBooks posts to on supplier transactions.

 

This will either be called 'Creditors' or 'Accounts Payable' Smiley Happy

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Level 2

How can I post a refund from a supplier/vendor?

Hi so now there is an amount outstanding on my supplier? what do i do with that?
Highlighted
QuickBooks Team

How can I post a refund from a supplier/vendor?


You now need to link the credit and deposit. To do this, go to the + icon > cheque, select the supplier and add both the credit and deposit from the right hand side of the page. Once this is saved, the balance will reduce to 0.

 

Thanks,

 

 

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Level 2

How can I post a refund from a supplier/vendor?

Many thanks, this helped me with a similar problem Smiley Very Happy

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Level 2

How can I post a refund from a supplier/vendor?

Hi There,

 

I had the same issue, a refund from a supplier for the overpaid amount.

I have followed all the steps explained created a deposit from the supplier and recorded a paybill to match the deposit with the overpaid amount.

It worked but what I do not understand is when I check the suppliers account instead of "0" I am seeing a minus amount with the double value of the overpayment is does not appear as payable or receivable but on the bottom there is the minus figures.
I am also sharing the screen shot.

Shouldn't that be "0".

i have marked all the related transactions.

Highlighted
QuickBooks Team

How can I post a refund from a supplier/vendor?

Thanks for going through the steps and for sharing a screenshot, @Vuralriza1.

 

You can leave the doubled negative amount shows on the bottom part of your supplier transaction list as it is. This doesn't actually total the open and closed balance of your supplier.

 

Rest assured as long as the open balance of your supplier is zero "0", then you're on the right track. 

 

To learn some tips and tricks on managing your expenses, I recommend checking our Manage Suppliers and Expenses page. From there, you can read great resources that can guide you in your future tasks.

 

Do get back to me if you have any other concerns. I'll be here to back you up. Have a great day and keep safe!