cancel
Showing results for 
Search instead for 
Did you mean: 
PanoramixTx
Level 1

Vendor refund does not zero vendor account

I have a vendor with a single service charge. The service was paid with a debit card in advance. The service was not rendered, so the charge was refunded. I entered it as a credit, now the account of the vendor shows a negative balance (credit) for the amount credited. How do I get that balance to zero. Thanks

Solved
Best answer February 18, 2021

Best Answers
JonpriL
Moderator

Vendor refund does not zero vendor account

Hello @PanoramixTx,

 

Let me help share how you can enter a refund from your vendor in QuickBooks Desktop.

 

Normally, a refund from a vendor is entered as a credit associated with a deposit. Since you already have existing credit, here's how you can enter a deposit:

  1. Go to Banking.
  2. Select Make Deposits.
  3. Under RECEIVED FROM, select the vendor in question.
  4. On the FROM ACCOUNT column, select your Accounts Payable account.
  5. Enter the amount of the refund you received.
  6. Click Save & Close.

Once done, you can go ahead and associate both your transactions. To do so:

  1. Go to Vendors.
  2. Select Pay Bills.
  3. The list of bills to pay will display the deposit you created.
  4. On the DISCOUNT & CREDIT INFORMATION OF THE HIGHLIGHTED BILL section, select Set Credits.
  5. Choose the credit you have entered in the first place.
  6. Select Done.
  7. Click Pay Selected Bills.

In the same manner, here's an article you can read to learn more about how you can enter a refund from your vendor: Record a vendor refund in QuickBooks Desktop.

 

On top of that, I've also included this reference for a compilation of articles you can use while working with us: Expenses and Vendors for QuickBooks Desktop.

 

If you have any other questions, please let me know in the comments below. I'll be here to lend a hand.

View solution in original post

6 Comments
JonpriL
Moderator

Vendor refund does not zero vendor account

Hello @PanoramixTx,

 

Let me help share how you can enter a refund from your vendor in QuickBooks Desktop.

 

Normally, a refund from a vendor is entered as a credit associated with a deposit. Since you already have existing credit, here's how you can enter a deposit:

  1. Go to Banking.
  2. Select Make Deposits.
  3. Under RECEIVED FROM, select the vendor in question.
  4. On the FROM ACCOUNT column, select your Accounts Payable account.
  5. Enter the amount of the refund you received.
  6. Click Save & Close.

Once done, you can go ahead and associate both your transactions. To do so:

  1. Go to Vendors.
  2. Select Pay Bills.
  3. The list of bills to pay will display the deposit you created.
  4. On the DISCOUNT & CREDIT INFORMATION OF THE HIGHLIGHTED BILL section, select Set Credits.
  5. Choose the credit you have entered in the first place.
  6. Select Done.
  7. Click Pay Selected Bills.

In the same manner, here's an article you can read to learn more about how you can enter a refund from your vendor: Record a vendor refund in QuickBooks Desktop.

 

On top of that, I've also included this reference for a compilation of articles you can use while working with us: Expenses and Vendors for QuickBooks Desktop.

 

If you have any other questions, please let me know in the comments below. I'll be here to lend a hand.

View solution in original post

Teresa Guardian
Level 2

Vendor refund does not zero vendor account

  1.  

you mentioned Once done, you can go ahead and associate both your transactions. To do so, you explained 7 step to link the transactions 

my question is after step 5, do you mean after record bank deposit, we need to create a credit same amount for the same vendor?

I go ahead to create a credit for the same vendor same amount as deposit, then I go to pay bill and choose the same vendor, under this vendor, we don't have any bills to pay. So I create a fake bill , then I go to set credit , I cannot see the amount as deposit I made early.

K_Siman
QuickBooks Team

Vendor refund does not zero vendor account

Good afternoon, @TERESA Guardian! Thank you for coming back to the Community to ask for clarification. I'm happy to expand on my colleague's answer. Oh, and happy Friday. :)

 

First, we want to make sure the bank deposit you created is assigned to the Accounts Payable account. This is important in order for it to show up in the vendor window as an open transaction.

 

In this situation, the deposit will be the "bill" since this makes a positive balance to the vendor. Therefore, no fake bill is needed to match that deposit. Then the vendor credit will be applied which will cause a negative balance to the vendor (thus zero-ing that vendor account).

 

If you've checked those things, and still are having issues, please reply and we're happy to continue to help you out!

Teresa Guardian
Level 2

Vendor refund does not zero vendor account

@K_Siman Thank you for replying . 

 

I did bank deposit is assigned to the Accounts Payable account under the title" FROM ACCOUNT", but it didn't show up as a "bill", that is why when I went to pay bill, there is no bill show up under the same Vendor. 

 

Is this something about the version desktop, I am using QuickBooks Enterprise Platinum edition Standard Download 5 Current Version

Mark_R
QuickBooks Team

Vendor refund does not zero vendor account

Thank you for getting back to us and sharing the result when linking the deposit to the credit, @TERESA Guardian.

 

The possible reasons why the deposit isn't showing on the Pay Bills window is that the posting account is incorrect, or it's already linked to a payment or a credit. Let's review the created bank deposit to verify. Here's how:

 

  1. Go to the Lists menu, then select Chart of Accounts.
  2. Select the bank account you use when creating the deposit.
  3. Find the deposit and open it by clicking the amount twice under the Balance column.
  4. In the Make Deposits window, verify the account used. It should be under the Accounts Payable account.1.PNG
  5. If it is associated with the Accounts Payable account, click Journal. This way, we can if the deposit link to a payment or other credit.

 

After verifying the posting account and the transaction journal but still isn't showing on the Pay Bills window, let's delete and recreate the deposit. Then, link the deposit and the credit again using the Pay Bills window.

 

If you get the same result, it's also possible that your company file had a data issue. You can read this article to learn some troubleshooting steps to fix data issues in your company file: Verify and Rebuild Data in QuickBooks Desktop.

 

Let me know how it goes, I want to make sure this is taken care of. Thanks for dropping by, I'll be standing by for your response.

Teresa Guardian
Level 2

Vendor refund does not zero vendor account

@Mark_R @PanoramixTx @K_Siman @JonpriL  Thank you so much for your reply. I found the problems. 

 

I think system autumnally balance the bill already. the reason I got confused at the very beginning is that when I checked all transactions on vendor center under vendor name, I couldn't find the transaction records for the deposit. I could find all the other transactions, but not the the one deposit we are discussing here . So I went back to the very beginning when we set up this vendor , and check one by one on the bank transactions,  I found out the total balance about this customer is actually correct. 

 

Thank you for you all

 

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us