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utkanf
Level 1

How to record returns made to Home Depot

As a handyman I make a lot of purchases from Home Depot. But I am confused about how to record returned items . I record the original receipt as materials(expense)

Thank you   

 

19 Comments
JamesDuanT
Moderator

How to record returns made to Home Depot

Hello utkanf,

 

You can enter the returned items as vendor credits. Let me show you how:

  1. Click the Create menu and select Vendor Credit.
  2. Choose the vendor and enter the details of the returned items.
  3. Click Save and close.

Let me know if you need anything else.

Rustler
Level 15

How to record returns made to Home Depot


@JamesDuanT wrote:

Hello utkanf,

 

You can enter the returned items as vendor credits. Let me show you how:

  1. Click the Create menu and select Vendor Credit.
  2. Choose the vendor and enter the details of the returned items.
  3. Click Save and close.

Let me know if you need anything else.


There were no items purchased, it was an expense

Rustler
Level 15

How to record returns made to Home Depot


@utkanf wrote:

As a handyman I make a lot of purchases from Home Depot. But I am confused about how to record returned items . I record the original receipt as materials(expense)

Thank you   

 


IF, if you use a home depot house account or you got a home depot orange card (I forget what HD calls them)

Use a vendor credit from the plus menu

select the same expense account as you used for the purchase, enter the amount, save

 

IF you used a credit card and got a credit back on the card, use credit card credit, select the same expense account, enter the amount, save

 

IF you got cash back, then make a deposit in that amount with the original expense account as the source account for the deposit

utkanf
Level 1

How to record returns made to Home Depot

The version I am using is asking me to upgrade if I try to do vendor credit. Is there a way to do this without upgrading?

Anonymous
Not applicable

How to record returns made to Home Depot

Hi, utkanf.

 

The best way of recording retuned payments or refunds from vendor is by entering a deposit. This process won’t require you to upgrade your subscription.

 

Here’s how to enter deposit:

  1. Click the Plus icon at the top.
  2. Choose Bank Deposit under Other.
  3. Choose an account at the top (should be the same account when you record the expense transaction).
  4. Enter the vendor name in the RECEIVE FROM field.
  5. Select an account in the ACCOUNT field next to RECEIVE FROM (This should be the account where you want to record the refund from your vendor).
  6. Enter the amount and click Save.

The expense transaction you’ve recorded in your QuickBooks will still show up, (for recording purposes) but the deposit will offset the amount.

 

Feel free to reach out to us again if you have additional question. We’re here anytime if you need help.

TAILS222
Level 2

How to record returns made to Home Depot

What if you used a debit card and the purchase was for a job? I would have recorded the original purchase as a check written and then tagged a job name under expenses for a COG account. 

Jen_D
Moderator

How to record returns made to Home Depot

Thanks for joining the thread, @TAILS222,

 

It looks like you're recording a billable expense, and you're on the right track with recording it using a check. You can also use other money out transactions such as expenses and bills.

 

I'll be adding the steps below for your reference:

 

  1. Go to the + New icon and select Check, Expense or Bill.
  2. Tap the Item Details section and pick the items returned.
  3. Make sure to tick the Billable box and add the customer name along with it.

When you're ready to invoice the customer, follow the steps below:

 

  1. Go back to the + New icon and choose Invoice.
  2. When you enter the customer name, the billable expense will appear on the right-hand side of the transaction.
  3. Click Add to auto-fill the details on the invoice.
  4. Once done, hit Save and close.

 

To learn more about this, here's a community guide about billable expenses that you can check: Enter billable expenses.

 

Feel free to get back to me if you have any other questions about this topic. I'll be more than glad to help you anytime. Have a nice day!

TAILS222
Level 2

How to record returns made to Home Depot

This makes no sense to me and my Quickbooks does not look like that. Any way that I can speak with a human over the phone?

Nick_M
QuickBooks Team

How to record returns made to Home Depot

Hi there, TAILS222.

 

Thanks for stopping by, if the images provided above by my colleague doesn't look like your product, you may be using another version of QuickBooks such as Desktop. Below, I'll provide the steps to reach a phone agent with the QuickBooks Online product and link on how to reach phone support through Desktop. 

  1. Sign in to your QuickBooks Online company.
  2. Select Help (?) at the top right.
  3. Select Contact Us to connect with a live support agent.

 

To ensure we address your concern on time, check out our support hours.

 

If you have any other questions or concerns, feel free to post down below. Thank you for your time and have a nice weekend.

chuckchuck2308
Level 2

How to record returns made to Home Depot

@Jen_D 

How about answering the question that was asked and not waste our time as we read something totally unrelated to the original question.  The question was how to record money back after returning items to Home Depot?  NOT how to enter expenses.  

Kristine Mae
QuickBooks Team

How to record returns made to Home Depot

Let me ease your confusion, Chuckchuck2308.

 

You can follow JamesDuanT steps on how to record a vendor credit. It will help you create a refund from a vendor.

 

For more information, you can also refer to this article: Enter a refund from a vendor.

 

If you have additional questions, please don't hesitate to drop a comment below. Take care!

Shannsocal
Level 1

How to record returns made to Home Depot

How would I apply that vendor credit to a purchase made?  It shows I can only apply the credit to bills, but if I go to Home Depot and use the store card (not credit card) they gave me to make a purchase in the store how would I record that?  

ReyJohn_D
Moderator

How to record returns made to Home Depot

I'll help you record the vendor credit to a purchase made, @Shannsocal.

 

First, you can create an expense account for the Home Depot purchase. Let me guide you how:

 

  1. Navigate through the Accounting menu, and then choose Chart of Accounts.
  2. Click New at the top.
  3. Select the right expense Account Type and Detail Type. If you aren't sure, you can consult your account for more guidance.
  4. Enter "Home Depot Purchase" in the Name field or any name as you see fit.
  5. Click Save and close.
    q213.PNG

 

After that, you can now create a vendor credit. Then, select the same expense account you used for the purchase. This way, you can link or apply the credit to the purchase.

 

Here's how:

 

  1. Click +New, and then select Vendor credit from the Vendors section.
  2. Choose the vendor name, the expense account you've created, and the amount.
  3. Click Save and close.
    q214.PNG

 

Once done, you're ready to pay your bills to clear off your vendor balances.

 

Lastly, you'll want to pull up the Bills and Applied Payments report to know the payments you’ve made and the bills that go with them. To accomplish this, go to the Reports menu. Then, select it from the What you owe section.

 

I can still help you handle your vendor credits in QuickBooks. Feel free to add your reply below so I can assist you right away.

TheWorkerBeeee
Level 1

How to record returns made to Home Depot

When entering returns for store credit into quickbooks, is it best to itemize each item returned/exchanged for store credit or is it okay to just group them together as one all inclusive return? Say there were many various tiny and or medium sized tools purchased on store credit. Also, how to handle sales tax included in that store credit purchase? My little brain assumes grouping the entire receipt of items exchanged including sales tax seems far easier than itemizing each individual tiny little tool and the tax too. But please correct me because I want to do this correctly and learning on the fly! Thank you for your assistance!

CharleneMae_F
QuickBooks Team

How to record returns made to Home Depot

Thanks for joining on this thread, TheWorkerBeeee.

 

I'm here to share some details in recording the returned items in QuickBooks Online.

 

If these are non-inventory items, you can record them as a group, including the sales tax. For inventory items, you'll have to track them one by one to affect their value.

 

If you'll want to learn how to track sales tax on purchases, I'd suggest following these steps.

 

Let's start by creating an Other Current Liability account. 

  1. Choose the Gear icon at the top, then select Chart of Accounts.
  2. Click the New button.
  3. Select Other Current Liabilities under Account Type and Detail Type (refer to the first screenshot).
  4. Enter a name and the needed details.
  5. Click Save and close.

 

Then, we can use this account when creating a purchase order or bill. Here's how:

 

  1. Click the Plus sign icon and choose Bill.
  2. Under Category choose the Other Current Liabilities account (refer to the second screenshot).
  3. Enter the amount and the needed details.
  4. Click Save and close.

 

Additionally, I've added an article that'll help you track your vendor expenses: Run a Report with Vendor Totals.

 

I suggest getting back to this thread if you'll need assistance in managing your vendor credit. We're always available to help you out.

Wenchie
Level 1

How to record returns made to Home Depot

This entire conversation is nuts. If I buy two rolls of wallpaper at Home Depot, and later return one, this is NOT a "vendor credit." It is a simple return. Just open your credit card register. At the very bottom, you see "Add CC Expense."  Click on the drop-down triangle next to that, and you will see "Add CC Credit."  Choose  that.  Use the same name and category you used to enter the expense in the first place ("Home Depot" and "Wall coverings," say).  Enter the amount as a normal, positive number. When you reconcile your credit card bill, you will see your original purchase, and the credit for your return, all neat and tidy.

 

(FYI, a "vendor credit" would be if Home Depot OWED you money. If you return an item, they pay you right away, so they don't owe you anything.  But if they mixed the wrong color of paint and they felt bad about it, they might say, "Hey, we're going to give you a $100 credit on your account." In that case, you would have a vendor credit, which you could later spend on drill bits or trash bags. 

Jaymz
Level 1

How to record returns made to Home Depot

I agree with Wenchie.  That sure was a lot to do for a simple return.  I bought 2 sheets of 1/2” plywood at Lowe’s using my debit card.  Didn’t use but one of them so I took the other one back to the store, they put the money back on the card I used (which would be back in my checking account).  I entered it as a deposit using the same account that I used to begin with ( job materials purchased -COGS).  That makes the account balance out.   On the original “write checks” I went back and edited it and listed the 2 sheets of plywood separately assigning only one sheet to the specific job.   Is it the right way to do this idk but it makes sense to me.

SKP2
Level 1

How to record returns made to Home Depot

What if Home Depot loads a card with your returned amount to be used for later purchases?

MichelleBh
QuickBooks Team

How to record returns made to Home Depot

Thanks for joining in this thread, @SKP2.

 

I've got steps on how to use the returned amount for later purchases in QuickBooks Online.

 

First, you'll want to create a Credit card Credit for your Home Depot in QuickBooks. 

 

Here's how: 

  1. Go to the +New icon, then choose Credit card Credit
  2. Pick Payee and Credit account in the drop-down arrow. 
  3. Select either Category or Item details in the box. 
  4. Enter the Amount in the field. 
  5. Click Save and close

 

After that, you can now deposit the funds to the appropriate account. Let me guide you on how. 

 

  1. Go back to the +New and select Bank deposit
  2. Choose the exact Account in the box. 
  3. In the Received From the drop-down, pick the vendor name. 
  4. In the Account field, select Accounts Payable (A/P). 
  5. Choose Payment Method, then enter the exact amount. 
  6. Click Save and close

 

Once your customer purchases a product, you can now apply the deposit to the bill. 

 

Here's how: 

  1. Open the bill you've used in purchasing a product.
  2. Select Mark as paid on the right side. 
  3. Pick Credit Account in the drop-down.
  4. Click Add, then Save and close

 

For the complete details, check out this link: Enter bills and record bill payments in QuickBooks.

 

Once everything is in place, you can run Purchases by Vendor Detail Report. Then customize it to show the Open Balance, A/P Paid, Amount, Rate, etc. 

 

 For more information, visit this link: Run reports in QuickBooks Online

 

Check out these articles about how the A/P works with QuickBooks and other related topics. 

 

 

Keep notifying me if you have follow-up questions about your home depot. Always here to assist you. Stay healthy. 

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