How to handle a returned vendor refund check

arielrogson · ‎February 25, 2021

To whom it may concern:

I use QuickBooks Pro 2015 (Desktop). I recently had a vendor (who had authority to automatically take money from my business checking account) take too much money out. They issued me a check for the overage, which I deposited into the business checking, and which I recorded using the Banking -> Make Deposits, where I indicated that the payment was from the same account to which the vendor's transactions were normally assigned.

Yesterday, my bank informed me that the check was returned: the vendor refused to honor it. I'm still fighting with the vendor about getting the money back, obviously; but in the meantime, how do I record the amount withdrawn from the business checking account? Should I enter it as a new bill and have it paid from the business checking account? Should I just write a check back to the vendor for the amount in question? Or is there a better way to reflect the returned check within QuickBooks?

Thanks in advance.

Ariel S. Rogson

Rasa-LilaM · ‎February 25, 2021

Hello there, arielrogson.

We can write a check and enter the amount in question. This is to keep your records in order. Let me help you with how to do this in QuickBooks.

Tap the Banking menu at the top and choose the Write Checks option.
This will open the check window.
From there, select the account you wish to record the entry.
Type the correct date and type the vendor’s name in the PAY TO THE ORDER OF field.
Enter the transaction details in either the Expenses or Items tab.
If you’ll track it in the Expenses tab, I suggest consulting with an accountant for further assistance. They can guide you on which account to use.
Input the amount in questions.
Click the Save & Close button.

For future reference, here’s a link that outlines the complete instructions on how to track vendor refunds. It’s scenario-based, so I recommend you select one that fits your situation.

To efficiently handle any expenses and vendor transactions, click here to access the articles. Make sure to choose the topic to easily view the guide.

Click the Reply button and post a comment if you have additional questions about QuickBooks. I’ll be around to answer them for you. Have a good one.

View solution in original post

Rasa-LilaM · ‎February 25, 2021

Hello there, arielrogson.

We can write a check and enter the amount in question. This is to keep your records in order. Let me help you with how to do this in QuickBooks.

Tap the Banking menu at the top and choose the Write Checks option.
This will open the check window.
From there, select the account you wish to record the entry.
Type the correct date and type the vendor’s name in the PAY TO THE ORDER OF field.
Enter the transaction details in either the Expenses or Items tab.
If you’ll track it in the Expenses tab, I suggest consulting with an accountant for further assistance. They can guide you on which account to use.
Input the amount in questions.
Click the Save & Close button.

For future reference, here’s a link that outlines the complete instructions on how to track vendor refunds. It’s scenario-based, so I recommend you select one that fits your situation.

To efficiently handle any expenses and vendor transactions, click here to access the articles. Make sure to choose the topic to easily view the guide.

Click the Reply button and post a comment if you have additional questions about QuickBooks. I’ll be around to answer them for you. Have a good one.

arielrogson · ‎February 26, 2021

Hi, Rasa-LilaM.

What you suggest appears to have worked. Thanks for the help.

arielrogson

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How to handle a returned vendor refund check