How to match a Bank Transaction to a Refund and an Expense

 Thanks for the detailed information you've provided, Leslie2557.  I'd be happy to guide you through the process of accurately recording your vendor refunds.

To maintain accurate financial records, please confirm if your bank feed shows the amount as 96. If so, I recommend creating a bank deposit entry that exactly matches this refund amount of 96 as displayed in your bank feed. I also suggest removing the vendor credit since it is a non-posting transaction and will not appear on the matching page.

To properly record the bank deposit, you'll need to follow a specific process to ensure accurate accounting. First, enter the $160 amount under the Accounts Receivable category, as this represents incoming funds. Then, for the $64 amount, you'll need to enter it as a negative value and associate it with an appropriate expense account.

Here's how:

1. Go to +New, then click Bank Deposit.
   
   
2. Choose a bank account and under the Add funds to this deposit, enter the necessary information.
3. In the Received from column, choose a vendor.
4. Under the Account dropdown, choose Accounts Receivable and enter the refund amount of 160.
   
   
5. On the next line, select the same vendor and enter the -64 amount for the expense.
6. Once done, click Save and close.
   
   

If you're not sure about which expense account to use, I recommend reaching out to your accountant. If you haven't yet appointed an accountant for your business, you can follow this link to explore a list of qualified accountants that can provide you with QuickBooks support: Find a QuickBooks ProAdvisor.

Once you have successfully created the bank deposit to record the refund, you can proceed to the banking page to match the bank transaction with the bank deposit.

Moreover, I'm adding this article as your reference in reconciling your accounts in QBO: Reconcile an account in QuickBooks Online.

Drop by again to this thread once you're ready to add more details about your concern with recording vendor refund or if you have other queries regarding QuickBooks Online. I'm always here and ready to help.

Hello,

Thank you for the solution. However, the refund was to a credit card and I don't have the option to choose the credit card for the bank deposit. 

-Leslie

Thanks for the update, @Leslie2557. Allow me to share some additional insights on how to seamlessly record a refund and an expense using the bank deposit feature in QuickBooks Online (QBO).

In QuickBooks Online, selecting a Credit Card when recording a refund on the Bank Deposit page is unavailable, as this feature is exclusive to bank accounts. If you have completed the steps outlined previously, there's no need to match the transactions again. Doing so will help prevent any duplication in your records.

It's advisable to reconcile your bank accounts on a monthly basis. This practice ensures that all your financial records are accurate and up-to-date. For a comprehensive guide on how to efficiently carry out this process, we recommend reviewing this detailed article.

If you have any follow-up questions or need further clarification on recording a refund in QuickBooks, feel free to pop your questions in the comments below. Our team is here for you, and we're always ready to help out.