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Level 2

Quickbooks Desktop - Supplier refund

I am using QuickBooks Desktop 2020.


I have been trying to sort out a supplier refund for the following issue i have, but i just can't see what steps i'm missing.


For the Electricity bill, i am charged a regular monthly amount.


The amount previously in credit was £203.96. I then paid £59 for the next 3 months, making the total credit on the account £380.96. For the 4 payment i have entered them as cheques, and used accounts payable as the account, and the customer:job as the supllier name.


I then received a bill showing the actual usage as £264.98 which i entered as a bill to the supplier, meaning the current balance is now £115.98 in credit which shows correctly in the quickbooks supplier balance. The electric company has now sent a refund for £115.98 to my bank account.


How can i record it correctly, as currently i don't have the £115.98 showing in the bank account, rather the supplier balance shows -£115.98, and also it shows £264.98 as amount due when i go to pay bills.

QuickBooks Team

Quickbooks Desktop - Supplier refund

I can guide you on how to record the amount in QuickBooks Desktop, @jack1289.


You can record the refund (£115.98) as a deposit. I'll show you how.


  1. Select Make Deposits from the Banking tab.a27 1.PNG
  2. Fill in the necessary field on the Make Deposits window.
  3. Click on Save and close.

You can also read this article to learn more about supplier refund in QuickBooks Desktop.


Please let me know in the comment section if you have any follow-up questions. I'm always here to answer them. Take care and enjoy the rest of the day!

Level 2

Quickbooks Desktop - Supplier refund

Hi @Angelyn_T ,


Is it possible to give a bit more detail regarding the exact steps, as i made a deposit, for the £115.98 and put the account as accounts payable, as per the article, and now the supplier balance shows as £0, however when i go to pay bills, it still shows the bills as not being paid, and when i go to pay bills and select credit it doesn't let me select all the credits.

QuickBooks Team

Quickbooks Desktop - Supplier refund

I appreciate you for getting back to this thread, @jack1289.


I'm here to give you additional details on how to apply the credit amount (deposit) on the existing bill. 


When paying the open bill, you can click on the Set Credits button to apply the deposit recorded. I'll show you how.


  1. Click on Pay Bills from the Vendors menu.a27 1.PNG
  2. Select the bill you want to pay.a27 2.PNG
  3. Tap on the Set Credits button, then select the available credits from the Apply Credits window.a27 4.PNG
  4. Hit Done.
  5. The credit amount is now showing up under the Credits Used column. Select Pay Selected Bills to record the payment.a27 5.PNG
  6. The amount paid is zero under the Payment Summary page. Click Done.a27 6.PNG

After these steps, you can review your transactions under the supplier's name. The bill is now marked as paid.a27 8.PNG


As you continue working with QuickBooks, you can read the topics from our help articles as your future references.  Here's the link: Find articles, video tutorials, and more.


That should point you out in the right direction today. Keep me posted if you have any other questions. I'm more than happy to help. Have a good day!

Level 2

Quickbooks Desktop - Supplier refund

Hi @Angelyn_T ,


I tried your steps but something still looks wrong.


Picture 1 attached shows the balance before the bill of £380.96.


Picture 2 shows the detail to make that balance.




Picture 3 shows the bill entered for £264.98, resulting in the credit of £115.98 which shows in picture 4.




Picture 5 shows the deposit made for £115.98 back to the bank account, and picture 6 shows the supplier balance now at £0.




Picture 7 shows the pay bills menu.




The issue is that there are 2 entries, and how do i make it so that i can apply all the credits against the bill, as i tried it before and it wouldn't let me apply all the credits against the bill.

QuickBooks Team

Quickbooks Desktop - Supplier refund

Thanks for providing screenshots, @jack1289.


Allow me to jump in on this thread and share additional info about recording your supplier refund.


Since your unable to apply all the credits against the bill, I recommend contacting our QuickBooks Support Team. One of our representatives can securely look into your books and further verify the cause of the issue. You can have the full contact information by going to the Help menu of the desktop company file. Then, you'll get real-time assistance via the Start a Message option. 


Here's how:

  1. From the Help menu, select QuickBooks Desktop Help.
  2. In the Have a Question window, scroll down to click the Contact us link.
  3. This will display the Contact Us screen.
  4. Go to the Tell us more about your question section to enter the issue or topic in the field box.
  5. Click the Search button to display the Start a Message button.


Additionally, I'm adding our Accounts Payable workflow as a reference. There, you can learn more about managing and tracking the money you owe your suppliers. 


Feel free to leave a comment below if you have any other questions about bills and credits. I'll be always around to lend a hand.

Level 2

Quickbooks Desktop - Supplier refund

hi @Angelyn_T ,


My question hasn't really been answered. I can apply credits, but as per the screenshots i can't apply all of them against the actual bill, and also is the £115.98 which is the actual refunded amount meant to show up in the pay bills area?

QuickBooks Team

Quickbooks Desktop - Supplier refund

Hello Jack1288, 


Thanks for coming back to us, 


we would advise you to ring into the desktop support team on 0808 168 9535, they will be able to set up a screen share with you and help guide you on what to do to resolve this issue you are having. 

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