Supplier credit/refund in quickbooks

Hello, user261022.

I know how to handle supplier refunds in QuickBooks Online Simple Start.

You can create a bank deposit. Then use the same account you did for the original expense. This will reduce the previous expense that was covered by the refund you just got.

Here's how:

1. Click the + New icon.
2. Select Bank deposit.
3. In the Account section, choose the correct bank account.
4. Fill in the date.
5. In the Add funds to this deposit, enter the supplier in the Received from column.
6. Choose the same expense account you use on the original expense in the Account column.
7. Enter the amount of the refund.
8. Once done, hit Save and close.

Check out this article for more details on recording refunds: Record a customer refund or supplier refund in QuickBooks Online.

If you want to view various aspects of your company for later use, I've also added the following resource: Run reports in QuickBooks Online.

Let me know if you have further questions. I'll be around to help you.

if I use this method for a refund originally recorded as a billable Expense to a client with a markup... how will this refund be reflected on their bill? Will it automatically be associated with the original Expense and therefore the refund be passed on to the customer.

E.g. I purchase materials to do a job for a client that is passed on as a billable expense with a 10% markup. If I then return the item for a refund and record the refund like this. Will the expense passed on to the customer automatically be adjusted acordingly... including any invoice I may have already raised against the customer?

I dont think you are missing something obvious. I have been struggling with this issue too.. I think QBO is missing something obvious. What you want.. is to be able to select an expense.. and either mark it as refunded. or partially refunded.. or create an associated refund.. and for that refund to automatically be reflected in your bank account as a refund deposit and if that was a billable expense.. for that ongoing bill to be adjusted accordingly.. but for the life of me I dont think Quick Books has thought of this.

How would you record the refunded VAT in this scenario, so that you don't end up claiming VAT on a purchase that has been refunded?

Hello there, RossF.

In QuickBooks Online (QBO), we can record the VAT refund by going to the Taxes menu. I'll guide you on how to do it:

1. Go to Taxes and select VAT.
2. Select the All Returns drop-down arrow, then choose the specific VAT period you need.
3. Tap the View Summary drop-down arrow, then click Record Refund.
4. Click the bank account the refund has gone into.
5. Make sure you've selected Refund under Payment Type.
6. Enter the refund date and amount in the appropriate fields.
7. Add a memo if needed.
8. Hit Save.

If you meant the refunded purchase, we can create a Supplier credit and Bank deposit affecting Accounts Payable (AP). Then, link them using Pay Bills. Here's how:

1. Go to the +New button.
2. Select Supplier credit.
3. Choose your supplier from the drop-down arrow.
4. Enter the other information needed.
5. Hit Save and close.

Once done, create a bank deposit and then pay bills.

I've also attached an article you can use to snap a photo of your bills using a mobile device: Upload your receipts and bills.

Let me know if you have other questions about recording VAT refunds in QuickBooks. I'm always here to help. Take care.