I created a deposit for a refunded credit but I have an open balance on the vendor account why?

Good day, imedrano.

I'll help with your question about vendor refund as well as making the vendor's balance zero.

Make sure that the account used in the deposit is not the Accounts Payable account. Otherwise, the vendor's balance will not zero out. Here's how to check: 

1. Go back to the vendor's profile in the Vendors tab.
2. Click the name of the vendor and go to the Transaction List tab.
3. Look for the deposit and click on it.
4. Go to the Account column and change it to Accounts Payable (A/P).
5. Click Save and close.

Aside from that, you can also run the Vendor Balance Detail report. This will give you a list of all transactions that are affecting the vendor's balance to determine why it's not zero. Just go to the Reports menu and type in the name of the report in the Search bar.

You can also check out this article on how to add a filter to it: Customize Reports in QuickBooks Online.

Please don't hesitate to reach out to us again or add a reply below if you need anything else. We're always here to help. 

If we will follow this process you will receive an error most especially if the transaction was electronically done and we don't have a way to modify the amount of the bill payment to the right payable amount.

What I highly suggest is to: 

1. Create a deposit with the amount refunded and changed the account (category) to Accounts payable to offset the initial incorrect amount of the bill and bill payment( see screenshot attached. For proper register recording.

2. Create a vendor credit of the exact amount refunded- this is nonposting so this will not affect your reconciliation or hit your register. This will only offset the vendor's balance. (see screenshot attached)

can anybody explain 

why the amount is deducted twice? why the total amount is in negative?

how to resolve this?

please see the attached 

can anybody explain 

why the amount is deducted twice? why the total amount is in negative?

how to resolve this?

please see the attached 

Let me help you from here, Saraali.

I like to know more about this, though. I will ask a few questions to help me better understand your concern. What transaction did you create? Where did you see the deduction? Are you referring to a vendor credit?

Also, I haven't seen your screenshot. If you can attach it again, I would appreciate it. You'll have to click the Camera or Photo icon to add it. 

Feel free to get back to this thread with more information. We're around 24/7 to assist you. Take care!

I am trying to follow your instructions but for some reason when I am in the paying bills tab the credit does not come up?

Can you help me with that?

Thank you for joining the thread, @Lcsc450. Let me give you information concerning the vendor credit and pay bills in QuickBooks Online.

For some reason, the credit is automatically applied even it is marked as not available on your end. Just fill-up the remaining fields as usual.

Have this article for you reference in Handling vendor credits and refunds in QuickBooks Online.

I also added this link to learn more about managing your QBO account: Help articles. I’m sure you’ll find it helpful.
 
Don’t hesitate hit reply if you want to know more information in QBO. I’ll be here to assist. Have a good one!

I've followed the guidance on this thread, but I'm still not getting where I want to be.  Here's my situation...

I rented a truck. I was charged a $150 deposit (to debit card) when I picked it up. When I returned the truck, the total rental charge was deducted from my deposit, which resulted in $31.63 being refunded to my debit card. I Have 2 transactions in my books -- an expense for $150 and a deposit for $31.63.

I want the refund to show up in the Vendor transaction list (to reduce the total $ spent with this vendor).  I've tried to credit a vendor credit, deposit to A/P, pay the bill, etc.; but because I'm recording expenses, not paying bills, this just creates opens/overdues for the vendor and messes up the total $ for the vendor.

I'm sure I'm missing something, but this sure seems unnecessarily complicated.  Ideas?

Hi kc_kangas!

You're almost there. Let me assist you further in recording vendor refund.

It's great that you've selected A/P when recording the deposit. Also, it seems that you've created a credit already.

 
In order for us to link the deposit and the credit, you'll need to create a check or pay bills. We'll just need to make sure that credit was applied and the total payment amount is zero.

Please check this screenshot for reference:

You'll want to check the deposit and verify that the Account selected is Accounts Payable. This is the common reason why recording refunds like this causes issues.

I added this article if you need help in balancing your accounts: Reconcile an account in QuickBooks Online.

You can reply to this thread if you have other questions. Have a great one! 

I have created a vendor credit and the vendor reimbursed the money to our credit card.  How do I record this and apply the credit?

I'll provide some information to guide you on how you can create vendor a refund on a credit card, Nikki M.

Vendor credit is used in QuickBooks Online (QBO) to either record returns to vendors or refunds from vendors. Generally, we use credit card credit when you apply for refunds on a credit card or record a return to a business credit card. I've outlined the steps below on how:

1. Select + New.
2. Select Credit card credit.
3. In the Payee field, select the appropriate vendor.
4. From the Bank/Credit account ▼ dropdown, select the credit card to which you received the refund to.
5. Enter the Payment date, refund Amount, Tax, and Category.
   Note: The category used here is the original expense account on the original bill.
6. Select Save and close.

However, I recommend reaching out to your accountant on the best way how you can record the refund. This way, you'll be guided on how you can reimburse a refund to the credit card.

Also, since entering a refund depends on how your record your purchases, you can also check out this article for more information: Enter Vendor Credits And Refunds In Quickbooks Online.

Moreover, QuickBooks offers different types of reports that cater to your business needs. You'll only have to customize them to make sure you get the information you need. I've added this article for more details: Customize Reports In QuickBooks Online.

Let us know if you have any other concerns when recording a refund. We're always right here to get you covered.