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Level 2

Supplier Refund negative total.

I've received a refund from a supplier and followed the steps as follows:

1 > Create a supplier credit

2 > Create bank deposit to record the refund

3 > Create a bill payment to link the credit to the deposit.

 

My concern is that before entering these transactions under Transaction List for the supplier the total at the bottom always showed £0.00. After entering the transactions above it now shows £-856.62 because the deposit and supplier credit both show £-428.31, and the Bill Payment shows £0.00.

 

Is this to be expected or have I made a mistake somewhere?

 

Thanks

Solved
Best answer May 13, 2020

Accepted Solutions
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QuickBooks Team

Supplier Refund negative total.

Thanks for sharing the details, @MikeB70.

 

You got it right on how to record a supplier refund. As long as the open balance of your supplier is zero, you're on the right track. The negative amount shown below the Total column is the total amount of the transactions.

 

I've attached an image for visual reference. 2.PNG

Furthermore, here's an article you can read to learn more about how to I handle supplier credits and refunds in QBO.

 

Additionally, do check our Manage Suppliers and Expenses page. There, you can read and learn some tips in managing your suppliers effectively.

 

Let me know if you have other concerns or questions. I'm always here to help you. Take care!

View solution in original post

6 REPLIES 6
Highlighted
QuickBooks Team

Supplier Refund negative total.

Thanks for sharing the details, @MikeB70.

 

You got it right on how to record a supplier refund. As long as the open balance of your supplier is zero, you're on the right track. The negative amount shown below the Total column is the total amount of the transactions.

 

I've attached an image for visual reference. 2.PNG

Furthermore, here's an article you can read to learn more about how to I handle supplier credits and refunds in QBO.

 

Additionally, do check our Manage Suppliers and Expenses page. There, you can read and learn some tips in managing your suppliers effectively.

 

Let me know if you have other concerns or questions. I'm always here to help you. Take care!

View solution in original post

Highlighted
Level 2

Supplier Refund negative total.

Thanks for the clarification. Not being an accountant or bookkeeper I was concerned about the two negative amounts for the credit and deposit. As long as that's how it's supposed to be then that's great.

Highlighted
Level 1

Supplier Refund negative total.

Hi,

 

This isn't how it's supposed to be...  the deposit, money back into the account, should show as a positive figure - opposite to the supplier credit, and the bill payment.  Yes, the value on the open balance may be right, but the total value of the transactions is not.

 

Bills, invoices from a supplier, are shown as a positive value.

Bill Payments, payments to the supplier, are shown as negative values, so the total value on the account is zero once all bills have been paid.

Supplier credits are also negative values, so when these are matched off against corresponding bills and bill payments, again, the sum total is zero.

A deposit, the opposite of a bill payment, is shown as a negative value, the same as a bill payment and a supplier credit, and it is impossible to then net this down to zero.

This doesn't make any sense at all!

 

Does this then in turn affect other reports?

 

 

Highlighted
Moderator

Supplier Refund negative total.

This will not affect the reporting, Selina.

 

In QuickBooks, a debit on your account will show as a positive amount, while credit will show as negative. Any expense, checks, or supplier credit will show negative in both credit cards and checking accounts.

 

I've added this link that talks about how the reporting in QuickBooks works: QuickBooks reports.

 

As always, I'm just around to help. Stay safe!

Highlighted
Level 1

Supplier Refund negative total.

Hi, 

 

So in this case, a supplier credit and a deposit are opposites - the supplier credit is the amount owed to you, and the deposit is the settlement of that 'debt'.   Has this issue been raised as something which needs to be fixed by your developers? The value of the transactions at the bottom will always be wrong unless this is fixed?

 

I don't mean to be difficult but this is a fundamental error.  

 

I do agree that the open balance and the reports are ok, but looking at the individual accounts is where the error appears.

 

Many thanks

 

Selina

Highlighted
Moderator

Supplier Refund negative total.

Hello again, @Selina.

 

I appreciate your input from every angle. 

 

As mentioned by my colleagues above, the positive amount showing is a debit on your account while the negative is the credit. Also, the amount showing on your account depends on how it is created. 

 

To isolate the issue, you can pull up the transaction journal to verify the posting of the transaction as to why it's showing as negative. 

 

Moreover, when creating a deposit, the amount will offset the open balance on the suppliers page. 

 

You can also check out these articles which you may find helpful :

If you need anything else, leave a comment below. I'm always right here to help. Take care.