I have a vendor I issued payment to, due to Covid the seminar was cancelled and I was issued a refund. How to I place the refund on the account and zero out the balance? I was billed and paid via a check. so when I post the refund I am showing a credit balance. I want it all to be zero.

Hi jenn22, 

Thanks for joining us here on the Community :waving_hand:

If the cheque was processed and money refunded through your bank, can follow the steps below to record the refund from your supplier:

1. Create a supplier credit (+ icon -> supplier credit​)
2. Choose the correct date and supplier, put in the amount, choose VAT
3. Then click on the + icon again, and choose Bank Deposit, to show that the money went into your bank account
4. Choose the correct bank account on the top left corner, choose the date when the money actually hit your account
5. For Received from choose the correct supplier, for the account choose Creditors, put the amount in, choose no VAT
6. On the Supplier's page create cheque
7. Tick the deposit against the supplier credit (this shows QuickBooks, that the supplier credit has been used, and money was received from the supplier), untick the bill and save and close

Please get back to us below if you have any Q's!

I am using QB online and don't have an option for a supplier credit. I have a vendor credit option but it doesn't allow me to select VAT.

Hi jenn22, 

Are you using the UK version of QuickBooks Online? 

Did the original bill to the vendor have VAT applied?

Thanks

No the US Version, Not sure how I got into the UK Quickbooks community. Sorry 

Hi @jenn22,

Thank you for your prompt reply, as well as clearing up the actual version of QuickBooks Online (QBO) you're using.

The steps you'll need to take is the same as what my peer @GeorgiaC shared above. We'll need to tweak it a bit so it works with the US version.

Create a vendor credit first. Let me show you how:

1. Go to the + New menu.
2. Select Vendor credit.
3. Choose the vendor in question under the Vendor drop-down menu.
4. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
5. When done, click Save and close.

Continue this process through this article: Enter a refund from a vendor. Scroll down to Step 2: Deposit the money you got from the refund.

On the other hand, if you need to record a refund you provide your customers, see this article instead: Record a customer refund in QuickBooks Online. You'll find a few sets of steps for a customer refund based on different scenarios.

Do you have other questions in mind? Post them below, and I'll be sure to get back to you.