Note: How you enter the refund depends on how you record your purchases. If you’re not sure, ask your accountant. Or, we can help you find an Accountant.
Make sure you have already created the initial expense or cheque in QuickBooks and assigned a Category/Account to it.
Select + New. and then Bank deposit.
Go to the Add funds to this deposit section:
Enter the amount refunded by the supplier and choose the Category/Account that you selected on the initial expense or cheque.
If this refund was for an expense that you linked to a customer or project, tick the Track returns for customer checkbox, then select the customer or project. That way, your costs will not be overstated.
If you deposited customer payments for invoices into the bank account along with the supplier refund, add them in the Select the payments included in this deposit section.
Note: If you overpaid the supplier, no need to worry about a supplier credit. QuickBooks Online automatically creates an unapplied credit for you. Start at step 5.
Select + New.
Select Supplier credit.
In the Supplier field, select the appropriate supplier.
Enter the Payment date, Amount, VAT, and Category (This is the category, product, or service you’re getting a credit for).
Select Save and close.
Select + New., and select Bank deposit.
In the Add funds to this deposit section, enter the following information:
In the Received From field, select or enter the desired supplier.
In the Account field, select the Creditors account (Accounts payable).
In the Amount field, enter the amount of the refund.
In the VAT field, select the appropriate VAT (not inclusive/exclusive of tax).
Select Save and close.
Next, go to + New and select Cheque.
Add the payee and choose the Supplier Credit and Deposit in the pop-up window and add them both.
Balance should be 0 as they will cancel each other out.
Select Save and close.
If you have Online Banking, go to Transactions, select Banktransactions (Take me there). Then match the record found on the Banktransactions (Take me there) page.
Keep in mind that this feature is currently in beta, which means that it’s still being tested and refined before its final release.
Also, this feature doesn’t support accounts with multiple creditor accounts, such as multicurrency. If you have multiple creditors, you’ll need to manually create the deposit and payment.
Select the Paid tab and double check if the bill has been paid.
If you don’t see it, check the For review or Unpaid tabs, find the bill, and mark it as paid.
Step 2: Create a supplier credit
Select + New.
Select Supplier credit.
In the Supplier ▼ dropdown, select your supplier.
Depending on how you record purchases with this supplier, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for. Note: If you choose a stock item, QuickBooks will put it back into stock. If the item is defective or if you don’t want it added back to stock, you can make a stock adjustment.
Depending on how you record purchases with this supplier, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting a credit for. Note: If you choose a stock item, QuickBooks will put it back into stock. If the item is defective or if you don’t want it added back to stock, you can make a stock adjustment.
Select Save and close.
Step 2: Apply the credits to a bill
You can apply a supplier credit toward any open or future bill. When you’re ready to use the credit, here’s how to do it.
Select + New.
Select Pay bills.
Select a bill for your supplier from the list. You'll see the available credit with this supplier in the Credit Applied field.
Complete the rest of the fields like you normally do.
Sometimes a supplier may give you credit with them as a promotion or a thank you. Here's how to record the credit and apply it toward any open or future bill with them.
Step 1: Enter a supplier credit
This makes sure the credit hits the expense account you use for this supplier.
Select + New.
Select Supplier credit.
In the Supplier ▼ dropdown, select your supplier.
Depending on how you record purchases with this supplier, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting a credit for.
Select Save and close.
Step 2: Deposit the money you got from the supplier
Select + New.
Select Bank deposit.
In the Account dropdown menu, select the account where you got the refund.
In the Add funds to this deposit section, fill out the following fields:
Received from: Select the supplier who gave you a refund.
Account: You need to select Accounts so you can tie the refund to the supplier credit. This may seem a little strange, but it’s the best way to do this.
Payment method: Enter the method your supplier used to refund you.
Amount: Enter the amount of your refund.
Select Save and close.
Step 3: Use Pay Bills to connect the bank deposit to the supplier credit
Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your supplier expenses accurate.
Select + New.
Select Pay bills.
Select the bank deposit you just created. You’ll see the amount of the supplier credit in the Credit Applied field. The Total payment should be GBP £ 0.00.
Matching supplier refunds to supplier credits is an important accounting process that helps ensure that all accounts receivable and accounts payable balances are accurate.
Step 1: Enter the supplier refund
Select + New.
Select Bank deposit.
In the Account dropdown menu, choose your bank account.
In the Add funds to this deposit section:
Received from: Select the supplier who gave you a refund.
Account: Select Creditors.
Enter the amount.
Select Save and close.
Step 2: Match the supplier refund to the supplier credit