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Kaz24
Level 2

Supplier restocking fees

Hi

 

i returned unwanted materials to a supplier and they’ve refunded me the full amount less a 20% restocking fee.  How do I enter this in QBO and do I need to set up any new accounts in Chart of Accounts for the restocking fee?

 

Many thanks

 

Kaz

Solved
Best answer December 16, 2022

Accepted Solutions
TirzahC
QuickBooks Team

Supplier restocking fees

Hello, Kaz.

When receiving a refund, we can enter it as supplier credit. Use the original item that we purchase and then enter the full amount. While on the second line, enter the restocking fee item name which is 20%. We can use it as a stock or service item using an expense account. If we're not sure of what account to use, I recommend consulting an accountant to help you assist in choosing the correct account for the supplier's refund.

 

  1. Go to +New and then select Supplier Credit.
  2. In the Supplier dropdown, select your supplier.
  3. Depending on how you record purchases with this supplier, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
  4. Select Save and close.
  5. On the left navigation bar, click Sales.
  6. Search for the service item.
  7. Press Edit under the Action column.
  8. Put a checkmark on the box next to I purchased the product/service from a supplier.
  9. Add the expense account.
  10. Hit Save and close.

 

Furthermore, here's an article you can read and learn about: 

 

 

I've also added articles about handling product items in QuickBooks. 

 

 

Let me know if you have any other questions about recording supplier refunds in QuickBooks. I'll respond quickly.

View solution in original post

1 REPLY 1
TirzahC
QuickBooks Team

Supplier restocking fees

Hello, Kaz.

When receiving a refund, we can enter it as supplier credit. Use the original item that we purchase and then enter the full amount. While on the second line, enter the restocking fee item name which is 20%. We can use it as a stock or service item using an expense account. If we're not sure of what account to use, I recommend consulting an accountant to help you assist in choosing the correct account for the supplier's refund.

 

  1. Go to +New and then select Supplier Credit.
  2. In the Supplier dropdown, select your supplier.
  3. Depending on how you record purchases with this supplier, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
  4. Select Save and close.
  5. On the left navigation bar, click Sales.
  6. Search for the service item.
  7. Press Edit under the Action column.
  8. Put a checkmark on the box next to I purchased the product/service from a supplier.
  9. Add the expense account.
  10. Hit Save and close.

 

Furthermore, here's an article you can read and learn about: 

 

 

I've also added articles about handling product items in QuickBooks. 

 

 

Let me know if you have any other questions about recording supplier refunds in QuickBooks. I'll respond quickly.

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