I know how you can handle credit card credit and refund in QuickBooks Online, @WJR3.
When you record a vendor or credit card credit in QuickBooks, you can use an existing account or vendor. It's not necessary to create a new one.
If you receive a cash back or a refund for purchases made with your credit card, here's how you can record it to balance your transaction:
- Click on + New.
- Choose Credit card credit.
- Locate the correct account from the Bank/Credit Account drop-down box.
- Pick the account that you have for your cash back rewards whether expense/income account as you see fit under the Category details.
Note: Create an account to track your cashback rewards if you haven't created one yet. Check this article for the detailed steps: Create subaccounts in your chart of accounts in QuickBooks Online.
- Fill in the other details needed.
- Click on Save and close.
On the other hand, follow the steps below if you receive vendor credit. This ensures that the credit is applied to the vendor's expense account.
- Click on + New.
- Choose Vendor credit or Receive vendor credit.
- Pick your vendor in the Vendor dropdown.
- Fill in the Category details or Item details depending on how you record purchases with this vendor. Usually, this is the category, product, or service you’re getting credit for.
- Click on Save and close.
A vendor credit can be applied to any open or future bill. Here's how to apply the credit when you're ready. Here's how you can do it:
- Click on + New.
- Choose Pay bills or Pay bill.
- Pick a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
- Fill out the rest of the fields like you normally do.
I'm adding these helpful modules on how you can keep track and handle vendor transaction reports in QBO:
You already know where to find me in case you need extra help with managing refunds and credits. You can also include concerns with the software (QuickBooks) itself. I'm always here to back you up. Have a good one and take care!
