We can easily record the refund amount in QuickBooks Online, jimwagen.
First, we'll create a supplier credit to show that you've returned the item:
- Click the + New button and select Supplier credit.
- Enter the Supplier and the Payment date (refund date).
- Go to the Item details section and enter the item in the PRODUCT/SERVICE column.
- Enter the refund amount in the AMOUNT column.
- Click Save and Close.
Second, we'll record a bank deposit to show that the supplier refunded the amount and affected your bank.
- Click the + New button and select Bank deposit.
- Enter the bank account in the Account field.
- Enter the deposit date and go to the Add funds to this deposit section.
- Select the supplier under the RECEIVED FROM column.
- Select Creditors in the ACCOUNT column.
- Enter the refund amount in the AMOUNT column.
- Click Save and close.
Lastly, we can create an Expense or Cheque to link the two transactions.
- Click the + New button and select Expense or Cheque.
- Select the supplier in the Payee field and enter the Payment account (bank account).
- Enter the Payment date.
- On the right side of the Expense or Cheque window, the Add to Expense or Cheque drawer will appear.
Click Add on the Deposit and the Supplier Credit.
- The Deposit will appear under the Outstanding Transactions section, while the Supplier Credit will show under the Credits section.
Ensure the AMOUNT PAID in the upper-right corner is 0.00.
- Click Save and close.
You can also use this article for reference: How do I handle supplier credits and refunds?
I believe you can do this with ease. Have a great day!