how to post a supplier refund against the supplier credit?

That’s a great question, Hetal!

To record a supplier refund and apply it against the supplier credit in QuickBooks Online, you’ll use the Bank Deposit and Pay Bills options. Here’s a step-by-step guide to ensure everything is recorded correctly in your accounts.

Using Bank Deposit:

1. Go to the + New menu.
2. Select Bank Deposit (found under “Other”).
3. Complete the fields as follows:
4. Select the supplier who issued the refund.
5. Choose Accounts Payable as the account.
6. Enter the refund amount.
7. Select the bank account where the money was refunded.
8. Once completed, click Save and close.

Using Pay bills:

1. Go to the + New menu again and select Pay Bills.
2. In the "Pay Bills" window, select the supplier from the list. You’ll see the available supplier credit and the refund as a payment on the account.
3. Apply the supplier credit and the refund to match the balance.
4. Ensure the amounts reconcile properly and the total equals zero (or matches if partial).
5. Click Save and close.

That’s it! Your supplier refund is now correctly applied to the supplier credit.

If you need further clarification or assistance, feel free to let us know.