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AZEmbroiderer
Level 3

Depositing a Credit from a Vendor

We have a vendor that requires payment at time of purchase and the total comes out of the bank account.  Those items went into inventory.  A month later the items had to be returned so I had to do a credit to take the items out of inventory.  The vendor deposited the money back into the bank.

 

Now I have a credit that I don't know how to apply as a deposit into our QB's checkbook so I can reconcile.

 

How would I do this?

Thanks

Solved
Best answer March 19, 2020

Best Answers
GlinetteC
Moderator

Depositing a Credit from a Vendor

It's nice to have you back here, AZEmbroiderer.

 

Let me give you additional details about your concern.

 

We're doing Accounts Payable to affect the Vendor's accounts and show the available credits in the Pay Bills page. When you reconcile, the deposit will show in your bank. I'll show you how:

  1. From the Banking menu, select Reconcile.
  2. In the Begin Reconcile window, select your Account the amount deposited to.
  3. Click Continue.
  4. Locate the deposit amount.
  5. Click Reconcile Now.

If in case you'll encounter issues reconciling your account, please refer to this article: Fix issues when you're reconciling in QuickBooks Desktop.

 

Feel free to comment below if you need anything else.

View solution in original post

17 Comments 17
ReymondO
QuickBooks Team

Depositing a Credit from a Vendor

Let me help you in depositing the credit to your bank, @AZEmbroiderer.

 

We can simply create a deposit to zero out your credit. Here's how:

 

  1. Go to Banking and select Make Deposit.
  2. Click the bank account you wanted to deposit to in the Deposit To drop-down.
  3. Select the vendor in RECEIVED FROM drop-down.
  4. Choose Accounts Payable in the FROM ACCOUNT drop-down.

 

You can also run the Vendor Balance Summary report to check your company's current balance with each vendor. Simply follow these steps below:

 

  1. Go to Reports menu and select Vendors Payables.
  2. Click Vendor Balance Summary.

 

If you need further help in recording your transactions in QuickBooks, click the reply button below so I can provide you assistance.

AZEmbroiderer
Level 3

Depositing a Credit from a Vendor

ReymondO

I think you didn't finish the steps.

After I've done the Vendor, Accounts Payable, Dollar Amount, Save/Close, how do I apply the credit?  Does this apply the credit toward the deposit?  Does this just 0 it out?  Is there another step that I need to do other than check to see what the balance is for that vendor?

 

Here's where it is confusing to me -

Normally, when I am paying an invoice, I can apply the credit toward that invoice.  So I don't understand the difference between applying the credit to basically nothing and zeroing out.

 

I'm sorry, but I am flying by the seat of my pants when I have something new happen with a vendor/customer and am better with audio learning rather than visual.  Thank you for being patient.

GlinetteC
Moderator

Depositing a Credit from a Vendor

Thanks for performing the steps provided above, AZEmbroiderer.

 

Let's do the missing steps by linking the deposit to the Bill Credit you've created. The process is quick and easy. Here's how:

  1. From the Vendors menu, select Pay Bills.
    vendor credit.PNG
  2. Check the deposit that matches the Vendor check amount.
    vend2.PNG
  3. Select Set Credits to apply the Bill Credit you've created.
  4. Select Done.
    vend3.PNG
  5. Select Pay Bills Selected, then click Done.
    vend4.PNG

You can check this article that will guide you in recording refunds from vendor: Record a vendor refund in QuickBooks Desktop.

 

That's it! Doing the steps will surely link your credit to the deposit.

 

If you have any other questions, please feel free to comment below.

AZEmbroiderer
Level 3

Depositing a Credit from a Vendor

Question -

Why am I doing Accounts Payable?  I'm receiving the credit from the vendor who did a direct deposit into our bank account.  If I do Payable, then this will just show a 0 and not be a deposit into the bank and I can't reconcile the deposit with my bank statement.

GlinetteC
Moderator

Depositing a Credit from a Vendor

It's nice to have you back here, AZEmbroiderer.

 

Let me give you additional details about your concern.

 

We're doing Accounts Payable to affect the Vendor's accounts and show the available credits in the Pay Bills page. When you reconcile, the deposit will show in your bank. I'll show you how:

  1. From the Banking menu, select Reconcile.
  2. In the Begin Reconcile window, select your Account the amount deposited to.
  3. Click Continue.
  4. Locate the deposit amount.
  5. Click Reconcile Now.

If in case you'll encounter issues reconciling your account, please refer to this article: Fix issues when you're reconciling in QuickBooks Desktop.

 

Feel free to comment below if you need anything else.

AZEmbroiderer
Level 3

Depositing a Credit from a Vendor

Thank you!

Now I know what to do should this ever happen again.

Yvonne_SLC
Level 1

Depositing a Credit from a Vendor

Hello, when I get to the step about applying the credit to the deposit the deposit does not show in the Pay Bills screen. How do I get the deposit to show so that I can apply the credit to it?

Thanks

Yvonne_SLC
Level 1

Depositing a Credit from a Vendor

My apologies, I found it. Please disregard my question

Thanks for this post!

LRIESBERG
Level 1

Depositing a Credit from a Vendor

We returned something to a vendor so put a credit in so that next time we pay a bill from them we can use the credit. Well they ended up putting a credit to our credit card instead. How do I put that to my credit card? I know I can just enter a line under my credit card for them but then it doesn't put the inventory back in. Suggestions??

jamespaul
Moderator

Depositing a Credit from a Vendor

Hello, LRIESBERG. 

 

It appears that this is a duplicate post. My colleague has responded to you with some details and steps.

 

Check out the thread here: Direct link to the thread

 

Please don't hesitate to reply if you have any other concerns with your vendors. 

FConst03
Level 1

Depositing a Credit from a Vendor

How do I find the deposit in the Pay Bills screen? I have created the credit in the vendor center. I have created a deposit. I have reconciled. But when I go to link the credit with the deposit the deposit doesnt show in the pay bills screen. 

AlexV
QuickBooks Team

Depositing a Credit from a Vendor

Hi FConst03!

 

Thanks for reaching out to us. I'll assist you in recording vendor refunds.

 

When you create a deposit, you'll want to make sure to select Accounts Payable under From Account column. Aside from that, don't forget to select the vendor's name.

 

In the Pay Bills window, you'll see the available credits from the Total Credits Available section. Simply click the Set Credits button to link them.

 

Please refer to this screenshot:

Capture.PNG

 

 

I suggest you update your QuickBooks Desktop and run the Verify and Rebuild Data tool. This can fix and prevent any unusual behavior or issues.

 

Also, I added this article if you need help in importing your bank transactions: Set up bank accounts for Bank Feeds in QuickBooks Desktop.

 

Leave a reply again here if you need more help in recording transactions. Take care!

Linda Padie
Level 2

Depositing a Credit from a Vendor

Just saw this and thought maybe you could help me.  When I go to the bank deposit screen and go to the bottom to add deposit for my vendor credit, in the account field it does not allow me to put accounts payable in their.  It use to but just recently, within last month, it quit showing that.  The only categories it lets me choose from are the Banking ones.  Any ideas or suggestions?

MichelleBh
Moderator

Depositing a Credit from a Vendor

I want to stop this from happening to you, @Linda Padie.

 

I have a solution for you to select the Accounts Payable (AP) in deposit the vendor credit in QuickBooks Desktop. 

 

Normally, you can always use AP in depositing transactions. With this, ensure that the AP account is active. To check this, follow the steps below: 

 

  1. Press Ctrl + A to open the chart of accounts page. 
  2. Click the Account drop-down arrow and select Show Inactive Accounts
  3. If Accounts Payable has X, that means it's inactive. 
  4. Click the to make the account active again. 

 

Once confirmed, go back to the Deposit page and re-select the AP in the Account drop-down. For more information, click this article: Record and make bank deposits in QuickBooks.

 

If the issue persists, I'd recommend running the verify and rebuild tools. Doing this will help fix the data and integrity issues within the company file. 

 

Proceed as follows: 

 

  1. Choose Window and click Close All.
  2. Go to the File menu on the upper left side. 
  3. Choose Utilities and select Verify Data
  4. If you see an error, go back to the Utilities section and pick Rebuild Data
  5. Follow the on-screen instructions. 

 

For complete steps, see this link: Verify and Rebuild Data in QuickBooks Desktop.

 

Further, read through these articles below to learn more on how to reconcile an account and manage vendor transactions: 

 

 

I always check my notifications to reply to any responses. Don't hesitate to leave a comment if you have any further questions. I'm delighted to assist you again. Keep safe, Linda.

Linda Padie
Level 2

Depositing a Credit from a Vendor

Thank you for this information.  I think I failed to say I am working with QB Online so I haven't been able to find anywhere that I can do anything like this which I think is odd.

Linda Padie
Level 2

Depositing a Credit from a Vendor

These are the steps that I am following for the vendor credits that get put back in my bank account.  The second step is to do a bank deposit and you use the account "Accounts Payable".  It used to work about a month ago but no longer allows me to use anything but the Bank/Cash accounts.  The categories are all missing when I click the drop down menu.  I am sure there is a way to get them back but have not been able to find it yet.

 

Enter a refund from a vendor

by QuickBooks1376Updated 4 weeks ago

Learn how to record a refund from a vendor in QuickBooks Online.

Just got a refund for a business expense? We'll show you how to create a vendor credit.

How you enter the refund depends on how you record your purchases. Choose the section below that applies to you. If you’re not sure, ask your accountant. Or, we can help you find a ProAdvisor.

Step 1: Enter a vendor credit

This makes sure the credit hits the expense account you use for this vendor.

  1. Select + New.
  2. Select Vendor credit or Receive vendor credit.
  3. In the Vendor dropdown, select your vendor.
  4. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting a credit for.
  5. Select Save and close.

Step 2: Deposit the money you got from the refund

  1. Select + New.
  2. Select Bank deposit.
  3. In the Account dropdown menu, select the account where you got the refund.
  4. In the Add funds to this deposit section, fill out the following fields.
    • Received from: Select the vendor who gave you a refund.
    • Account: Select Accounts PayableImportant: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
    • Payment method: Enter the method your vendor used to refund you.
    • Amount: Enter the amount of your refund.
  5. Select Save and close.

Step 3: Use Pay Bills to connect the bank deposit to the vendor credit

Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your vendor expenses accurate.

  1. Select + New.
  2. Select Pay bills.
  3. Select the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
  4. Select Save and close.
Candice C
QuickBooks Team

Depositing a Credit from a Vendor

Good afternoon, @Linda Padie

 

Thanks for reaching back out and clarifying the situation. 

 

Since you're using QuickBooks Online, all you need to do is try some of our troubleshooting steps to help fix this problem. Using a private browser or incognito window will help eliminate any glitches or errors in the system. Here's how depending on your browser session: 

 

  • Google Chrome: Ctrl Shift N
  • Internet Explorer/Firefox: Ctrl Shift 
  • Safari: Command Shift 

 

If this works, go back to your regular session and clear your browser's history. If not, please let me see some additional screenshots on the issue. 

 

This should do the trick. Keep me updated on how this goes. Have a great day!

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