Credit Card Refund with a Check

Hello there, Ylice,

I'm here to help record the credit card refund in QuickBooks Desktop.

First, you'll want to deposit the check to enter the refund. The following steps will guide you through:

1. Go to the Banking menu, then select Make Deposits.
2. If the Payments to Deposit window appears, select OK.
3. In the Make Deposits window, select the Received from drop-down and choose the vendor who sent you the refund.
4. In the From Account drop-down, select the appropriate Accounts Payable account.
5. In the Amount column, enter the actual amount of the Vendor check.
6. (Optional) Enter a memo, check number, payment method, and class.
7. Select Save & Close.

Second, record a Bill Credit for the refunded amount. This will hit the expense account you use for this vendor.

1. From the Vendors menu, select Enter Bills.
2. Select the Credit radio button to account for the return of goods.
3. Enter the Vendor name.
4. Select the Expenses tab and enter the Accounts on the original bill.
5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
6. Select Save and Close.

Lastly, you can then link the deposit to the Bill Credit you've created above. This will keep your vendor expenses accurate.

1. From the Vendors menu, select Pay Bills.
2. Check the Deposit that matches the Vendor check amount.
3. Select Set Credits and apply the Bill Credit you created earlier then select Done.
4. Select Pay Selected Bills, then select Done.

The Record a vendor refund in QuickBooks Desktop article provides scenarios depending on how you receive the funds from a vendor.

Keep me posted if there's anything else I can help you today. I'm always right here to help.

I followed the above steps in the "Make Deposit" and "Bill Credit" sections.  I didn't follow the instructions to link the deposit to the Bill Credit because I don't have a bill for this transaction.  It was a credit card purchase and not a vendor bill.  It was refunded with a check.

I still have the physical check.  

I want to make sure that the originating transaction of "Enter Credit Card Charges" was offset by the "Bill Credit" transaction.  And that once I deposit the physical check, I would then just adjust the deposit date on the "Make Deposit" transaction. 

Hello there, @Ylice.

I appreciate that you follow the recommended steps provided by my colleague. However, let me add some follow-up steps to resolve your issue. Since it's a credit card transaction, you can enter a credit card charges in your QuickBooks Desktop account. You can follow these steps to enter credit card charges. Here's how:

1. Go to the Banking menu, then select Enter Credit Card Charges.
2. Choose the credit card account in the field.
3. In the Purchased from dropdown arrow, select the vendor.
4. Enter the transactions in the Expenses/Items line.
5. Fill up all the necessary fields.
6. Click the Save and Close button.

Once done, you can make a deposit so that it will zero out the balance on your credit card charges. Here's how:

1. Click the Banking menu, then choose Make Deposits.
2. In the Deposit To field, select the bank account.
3. Look for the vendor in the Received From column.
4. Choose the credit card account in the From Account dropdown.
5. Fill up the remaining fields.
6. Select Save and Close.

For more detailed information about making a deposit in QuickBooks Desktop, you can read this article: Record and make Bank Deposits in QuickBooks Desktop.

In case you'll have follow up questions about your banking topics such as reconciliation and transfer funds transaction, you can visit QuickBooks Dekstop Help Article for the steps.

If you have follow-up questions, please don't hesitate to leave a message in the comment section. I'll be happier to help. Take care and have a wonderful day!