credit (refund checks) from vendor for parts returned

Hi there, ametz1201.

Thank you for being detailed about your concern. I'd be happy to help you record refund checks in QuickBooks Online.
Yes, you may follow the previous QBO support's suggestion. 

You can open the deposit transaction and then add the refund amount under the "Add funds to this deposit" option.
Here's how:

1. Open a Bank deposit.
2. Choose the correct bank account.
3. Then "Add funds to this deposit" on the lower left side.
4. Enter the refund amount.
4. Select Save and close.

I have also attached a screenshot for your reference. 

You can also check this helpful link regarding reconciliation in QuickBooks Online. It will help you match your account to your bank statements.
Reconcile an account in QuickBooks Online 

If you have any further questions about refund checks in QuickBooks Online, please feel free to add them to this thread. The QuickBooks Community team is always here to help.

That is what I am currently doing, QBO help told me to do it that way, but when I look at my register for that account, why are there two entries, one credit and one debit for the same amount?  There should be a credit entry because of receiving the check for the refund.  When I saw the debit and credit entries in my register that worried me.  

Never mind, after looking into what you said I don't do it that way.  I deposit the refund checks with customer payment checks, so the way you are mentioning, should I deposit them separate so when I am matching the deposit from the bank with the customer payments I won't have a balance left over?

Because right not I am adding the refund checks at the deposit of matching the deposit with the customer payments and the left over amount to match is the refund checks and at the bottom as a resolving transaction because that is what I was told to do.  But when I saw the two entries in on the register now I don't know what to do.  

Also, I meant to ask when you the refund check deposit your way, should I enter in all the fields at the bottom, add funds to this deposit?  You said to just add the refund amount only.  

Hey there, @ametz1201. 

Thanks for chiming back in on this thread. 

Can you provide me with a screenshot of where it's showing a credit, debit, and the deposit as well so we can review it? (You can black out any sensitive information if need) 

This will help us determine the best solution for you and your business. I'll be waiting for your response! 

Please see attached are for two checks that we received from our vendor for parts returned.  So after I am done matching the deposit with the payment I have the checks for the parts returned to add so clear the matching.  So like I said before I click the resolve button and then the fields for add resolving transactions that QBO help walked me through to do for that.  Also they had me add a sub account to my checking account to put  the parts returns transactions to.  I don't know why or if that I needed.

Thank you.

Congratulations on linking the transactions successfully, @ametz1201. You've done it correctly, and I'll share more information about the debit and credit.

In double-entry accounting, the accounts are balanced when there is an equal amount on both the debit and credit sides. Since your screenshot shows equal entries on the opposite sides, you're on the right path because every debit must have a corresponding credit entry for the same dollar amount, and vice versa. This balance is essential for preparing financial statements that reflect the company's financial health, value, and profitability.

Additionally, you'll want to consult your accountant for a further guide in recording entries. They can help you with the fundamental principles of accounting and ensure the accuracy of financial records.

These resources will help you learn more about double-entry accounting:

• Debit vs. credit in accounting: The ultimate guide and examples
• How accounts are affected by debits and credits

Here's an article to match your QuickBooks transactions to your bank and credit card statements: Reconcile an account in QuickBooks Online.

Please leave a comment below if you have any other questions or concerns, and I'll get back to you right away. I'm always happy to help.

Well, I am thrilled to hear that I am doing something right...lol  Thank you.  But I don't understand it.

So I can keep adding the resolving transactions at the bottom of matching the deposit with the customer payments for the checks I receive from our vendors for the returned parts?  That is the correct way to record those checks we receive?

We can record vendor refunds in QuickBooks Online (QBO) in various ways, depending on how you track your purchases, ametz1201. We'll give you more information to help you manage your vendor transactions.

One way to record your refunds in QBO is by using the Adding resolving transactions section when matching your deposits for the checks you received from a vendor. In your case, you can directly create a deposit to record the refund, eliminating the need to resolve any differences when matching it to your downloaded transaction. 

To learn other methods of entering a refund or credit from a vendor in QBO, please see this article: Enter vendor credits and refunds in QuickBooks Online.

Additionally, we encourage you to reconcile your accounts so they always match your monthly statements and ensure your financial data is accurate.

Let us know in the Reply section below if you have any other concerns about managing vendor refunds and matching bank transactions in QBO. We wish you continued success with your business. Have a good one.

When I make a deposit I am depositing the refund checks from my vendor for the parts I returned with checks that I received from my customers together.  So when the deposit comes over from bank to receive I click on it and click match and I match the deposit with the customer payments and there is a balance left over to take care of which is the checks from for the returns that I have nothing in there to match so that I why I am adding the resolve transactions at the bottom.  

I was looking at the links that you replied with and looks like the "If you enter expenses or write checks I guess would be the best fit because I write checks for just about all the parts that we buy.  And I was looking at that process and I am confused on how that would work with #4 of that process about depositing customer payments with the vendor refunds checks because that is what I currently do.  And if I do it that way how does that connect with the deposit that comes over from my bank to the QBO for the review?

Oh and also, my business checking account is reconciled till 12/31/2023.  I haven't done January 2024 yet because I am still researching linking my credit card account to QBO and the Jan payment to my credit card is still sitting in for review.  And it seems like I haven't had any problems getting to $0.00 at the end of each month when matching the statement to the transactions in QBO.  Only had come trouble at the beginning months of starting the business because I was still learning to do it.

Hello there, ametz1201. I understand how important it is to record your transactions in QuickBooks and how essential it is to match them with your bank statement. 

There are two ways to handle this situation in QuickBooks Online. When logging the bank deposit for customer payments, you can simply include the refund as a separate line item. This way, the total amount of the deposit will accurately match the downloaded transaction. 

Alternatively, you can resolve the difference when matching the deposit and downloaded transaction. This method allows you to enter an adjustment to account for the refund, eliminating the need for manual addition to the deposit.

When you record and create a bank deposit in QuickBooks Online, you'll need to enter the refund amount in the Add funds to this deposit. 

Meanwhile, I recommend that you consult your accountant to ensure the accuracy of your financial records and proper recording of transactions. If you don't have one, you can find a professional through this link: https://quickbooks.intuit.com/find-an-accountant/.

I'll be adding these articles to help you manage your transactions and guide you in reconciling your account:

• Learn the reconciliation workflow
• Reconcile an account. 
• Fix issues at the end of a reconciliation. 

You can reply on this thread anytime if you need further assistance managing your bank transactions in QuickBooks Online. I'm always here to help you.