cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Do you have a question about self-assessment or anything else? - Ask it here!
hotlocks
Level 2

How to record a refund

I paid Itunes £7.99 for an app it was rubbish so they refunded me £7.99 but its come through as a sale and its a refund how do i categorise this can you give me step by step instruction please
Solved
Best answer November 28, 2020

Accepted Solutions
LieraMarie_A
QuickBooks Team

How to record a refund

I've got just the steps you'll need in recording the refund, @hotlocks.

 

When you receive a refund from a vendor, you must first record a supplier credit for the expense that the refunded payment was applied. Then, you'll have to deposit the money received. After that, apply or link the deposit to the credit memo with a "zero GBP" payment. I'll show you how to do it.

 

Let's start recording the refund by entering the vendor credit.

  1. Click on the +New button.
  2. Select Supplier/Vendor Credit.
  3. Select the vendor's name from the Vendor drop-down list.
  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. Enter the amount.
  6. Select Save and close.
    Capture.JPG

 

Then, let's deposit the money received.

  1. Click +New.
  2. Select Bank deposit.
  3. Choose the bank account.
  4. In the Add funds to this deposit section, fill in the following fields:
  5. Received from: Select or enter the vendor name
  6. Account: Select the Accounts Payable account.
  7. Amount: Enter the cheque amount.
  8. Select Save and close.
    Capture2.JPG

 

Lastly, let's link the deposit to the vendor's credit memo with a "zero dollar" payment.

  1. Click +New.
  2. Select Pay Bills.
  3. Select the deposit.
  4. Select Save and close.
    Capture3.JPG

These instructions are available from our guide on entering a refund from a supplier

 

Once done, you can reconcile your account to make sure they match your bank statement. 

 

Just to add this is available in our Essentials and Plus packages. If you are using the Simple Start package  you can record the refund by creating a bank deposit (+ New > Bank deposit) - select the date and bank account the money was returned to and then scroll to 'add funds to this deposit'. On the first line, enter the same expense account used in the original expense and then enter the total amount and VAT code. 

 

Please touch base with us here if there's anything else you need, I'm determined to ensure your success. Have a wonderful day.

View solution in original post

33 REPLIES 33
LieraMarie_A
QuickBooks Team

How to record a refund

I've got just the steps you'll need in recording the refund, @hotlocks.

 

When you receive a refund from a vendor, you must first record a supplier credit for the expense that the refunded payment was applied. Then, you'll have to deposit the money received. After that, apply or link the deposit to the credit memo with a "zero GBP" payment. I'll show you how to do it.

 

Let's start recording the refund by entering the vendor credit.

  1. Click on the +New button.
  2. Select Supplier/Vendor Credit.
  3. Select the vendor's name from the Vendor drop-down list.
  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. Enter the amount.
  6. Select Save and close.
    Capture.JPG

 

Then, let's deposit the money received.

  1. Click +New.
  2. Select Bank deposit.
  3. Choose the bank account.
  4. In the Add funds to this deposit section, fill in the following fields:
  5. Received from: Select or enter the vendor name
  6. Account: Select the Accounts Payable account.
  7. Amount: Enter the cheque amount.
  8. Select Save and close.
    Capture2.JPG

 

Lastly, let's link the deposit to the vendor's credit memo with a "zero dollar" payment.

  1. Click +New.
  2. Select Pay Bills.
  3. Select the deposit.
  4. Select Save and close.
    Capture3.JPG

These instructions are available from our guide on entering a refund from a supplier

 

Once done, you can reconcile your account to make sure they match your bank statement. 

 

Just to add this is available in our Essentials and Plus packages. If you are using the Simple Start package  you can record the refund by creating a bank deposit (+ New > Bank deposit) - select the date and bank account the money was returned to and then scroll to 'add funds to this deposit'. On the first line, enter the same expense account used in the original expense and then enter the total amount and VAT code. 

 

Please touch base with us here if there's anything else you need, I'm determined to ensure your success. Have a wonderful day.

hotlocks
Level 2

How to record a refund

Hi I have quickbooks online and its telling me i need to upgrade, is there no other way of doing this 

MaryJoyD
Moderator

How to record a refund

Let me help you record the vendor refund, @hotlocks.

 

Can you tell us more where you've seen the prompt to upgrade your subscription? Either which version of QuickBooks you're using, you can still enter a vendor credit, create a bank deposit, and link the deposit to the vendor's credit memo with a zero dollar payment through Pay bills feature to record a refund.

 

The steps that we're mentioned by LieraMarie_A is the process to record a vendor refund. The other way of handling it is by entering the supplier credits. Then, pay the bill using the supplier credits. This is the best option if you're planning to receive the credit from your supplier and apply it to future bills. 

 

You can check the Scenario 2 in this article for more information: How do I handle supplier credits and refunds?

 

In case you'd still like to upgrade your current subscription, you can check this link for more information about the monthly subscription and the features they have: https://quickbooks.intuit.com/uk/pricing/.

 

You can upgrade your subscription from the Billing & Subscription menu. Check the steps below:

  1. Go to the Gear icon ⚙ and select Account and Settings.
  2. Select the Billing & Subscription menu and choose to Upgrade your plan
  3. Click on Select Get started after choosing your new plan.

 

See this article for more information: Upgrade or downgrade your QuickBooks Online subscription.

 

I'm always here if you need more help or if you have follow-up questions in recording this refund. Take care and have a wonderful day!

SOLOMON PEACE
Level 1

How to record a refund

I followed this easy-to-understand process and it came out perfect.

 

Thanks for the light!

ponkysue17
Level 2

How to record a refund

I have tried to follow this in my quickbooks on line and cannot make it work. I am lost. Have tried Quickbooks chat and the person could not show me how to make this work. When I try to do the first step I am told I have to upgrade 

John C
QuickBooks Team

How to record a refund

Hi ponkysue17 Is the refund in relation to a supplier or a customer?

ponkysue17
Level 2

How to record a refund

It is a refund FROM a supplier - they had taken £8.36 against my Debit card in error. 

 

GeorgiaC
QuickBooks Team

How to record a refund

Thanks ponkysue17, so that we can guide you on the steps to record this, can we check if you're using QB Simple Start, QB Essentials, or QB Plus? 

ponkysue17
Level 2

How to record a refund

I am using Simplestart - 

GeorgiaC
QuickBooks Team

How to record a refund

Thanks ponkysue17, in this case, you can record the refund by creating a bank deposit (+ New > Bank deposit) - select the date and bank account the money was returned to and then scroll to 'add funds to this deposit'. On the first line, enter the same expense account used in the original expense and then enter the total amount and VAT code. 

palmerflooring
Level 1

How to record a refund

I am using QuickBooks Desktop Pro 2019. When I go to "Pay Bills" the deposit does not appear. Is there a way to finish this step short of creating a bill for the amount of the refund?

AlexV
QuickBooks Team

How to record a refund

Hi palmerflooring!


Thanks for joining this post. You'll want to check how you created the deposit. Allow me to help you.


Let's make sure that you used an Accounts Payable account in the From Account drop-down. You'll want to open the deposit and edit it if needed. 


On the Pay Bills window, click the Set Credits and apply the Bill Credit you created. Then, click Done, select Pay Selected Bills, then select Done again.


This article  will guide you in recording refunds you received from a supplier: Record a supplier refund in QuickBooks Desktop.


If the same thing happens, you'll want to rebuild your company file. This scans the data and fixes any issues. You can find the detailed steps here: Verify and Rebuild Data in QuickBooks Desktop.


Lastly, I added this article if you need help in reconciling your accounts: Reconcile an account in QuickBooks Desktop.


Please feel free to reach out to us again if you have more questions. I'll help you!

Danielle20
Level 1

How to record a refund

Hi I tried to follow these instructions but got stuck on the recording a Bank Deposit. It says 'You cannot track tax on accounts of types Debtors and Creditors.' I am using QB Online.

Rubielyn_J
QuickBooks Team

How to record a refund

Thanks for joining this thread, @Danielle20. Allow me to provide some info about the error message and how to fix it.

 

The system will only allow you to track taxes on the expense, checking, and income accounts. Currently, utilizing the Accounts Payable or Accounts Receivable type of accounts is unavailable.

 

To get your work done and get past the error message, you'll need to create an invoice or a bill so you can allocate a VAT code to the transaction. This way, it will be added to the appropriate bank account and will help show the tax amount you've paid. 

 

Once done, you can continue recording a bank deposit. For your reference, feel free to review this article: Make bank deposits in QuickBooks Online.

 

Additionally, I'm also attaching these links you can utilize to help manage VAT codes in QuickBooks:  

 

 

Don't hesitate to comment below by clicking the Reply button if you have further questions about recording bank deposits. I'm always right here to assist you. Take care!

Danielle20
Level 1

How to record a refund

Hi

 

Yes I am not sure which account to set the refund to as it is a form of income but not 'uncategorised' or 'non-profit'.

 

Thanks

Danielle

jasgagan
Level 1

How to record a refund

Hello there, 

 

I followed these steps and first two steps were simple but when i click on pay bills i don not see the Transaction there 

GeorgiaC
QuickBooks Team

How to record a refund

Hi jasgagan, did you select the accounts payable (or 'creditors') account in the account field of the bank deposit? I'd also recommend navigating to the suppliers page (expenses > suppliers > select supplier from list > new transaction > cheque) to match the supplier credit and bank deposit. 

jasgagan
Level 1

How to record a refund

Hello there,

 

Thanks for reply, 

I have selected the bank account 

Rose-A
Moderator

How to record a refund

I appreciate you getting back to us, jasgagan.

 

To ensure your transactions are showing when paying bills, you might want to ensure you've selected the Accounts Payable (Creditors). See the sample screenshot below.

 

Once done, we can go back to the Pay Bills section and select the Bank Deposit from there.

 

To know more about this process, we can refer to this article: Record a customer refund or supplier refund in QuickBooks Online. In the same link, we can find other ways how to handle supplier refunds based on scenarios.

 

Should you have follow-up questions about recording refunds in QuickBooks Online, please let me know. I'm all hands on deck to keep helping. Have a good one, jasgagan.

jasgagan
Level 1

How to record a refund

Hi there ,

 

Can i call you to discuss this more , What i am understanding here is 

Supplier credit > Bank Deposit with creditors account > Pay bills 

LieraMarie_A
QuickBooks Team

How to record a refund

Hello, @jasgagan.

 

Thanks for following up with us. Allow me to chime in and share additional information about recording a supplier refund. I want to make sure you can get everything straightened out.

 

Yes, you're right. The way to record a refund is to create a supplier credit for the expense that the refunded payment was applied. Then, you'll have to deposit the money received. Make sure to select Accounts Payable in the Account field. This way, you can apply or link it to the credit memo using the Pay Bills feature. You may also read through this article for your reference: Record a customer refund or supplier refund in QuickBooks Online.

 

Although I'd love to look further into this for you, I don't have the same types of tools needed to call as our Customer Care Support team do. If you wish to reach them, you may follow the steps below:

 

  1. Head to this link: Support.
  2. Select which product is your question about and then its edition.
  3. Enter a short description of your concern.
  4. Hit Continue.
  5. Select a way to connect with us.


Keep in touch with us here if you need more help with the process and update us on how the call goes. I'm determined to ensure your success. Have a great day!

Samename
Level 1

How to record a refund

Hi ponkysue17,

 

Did you ever figure out how to record a refund in quickbooks online??? I’m having similar issues here and no one from the team can’t seems to help. Yesterday someone from the team ended our chat in the middle of trying to help me when he couldn’t figure it out. 

I don’t need to upgrade and I still can’t record a refund. The instructions doesn’t make sense!

GeorgiaC
QuickBooks Team

How to record a refund

Hi Samename, are you looking to record a refund for items/services returned by a customer, or a refund returned to you by a supplier? 

jasgagan
Level 1

How to record a refund

Hi there , 

I am looking to record a refund returned by online supplier that i have purchased some parts just like an amazon refund on a returned merchandise 

Need to get in touch?

Contact us