Refund from Vendor to Credit Card

I recognize how important it is to flawlessly record the vendor refund, stackArmor. I'm here to assist you with that.

When you receive a refunded amount of the purchases made on your credit card, you'll only have to create a Credit card credit. This helps you easily record it to balance your transactions flow. With this, I'd suggest deleting the vendor credit that you've created.

Here's how:

1. Go to the Expenses menu and then select Vendors.
2. Locate the name of the vendor, then click to open it.
3. Open the vendor credit you've created.
4. Click the More button, then select Delete.
   

In case you'll want to know when to use a vendor credit, I'd suggest checking out this article: Enter a Refund from a Vendor.

Additionally, I've included an article that'll help you learn more about managing your vendor transactions in QuickBooks Online: Expenses and Suppliers.

I'm only a few clicks away if you need assistance with your other QuickBooks tasks, stackArmor. It's always my pleasure to help you out again.

Thanks Charlene for answering but the problem is again the same.

After deleting the VC, If I keep Credit card credit with the item details mentioned in it, It will not reduce my purchase because in CC credit transaction we can use category only not the item also vendor account will still have a negative balance.

The credit card entry should be adjusted against the VC because when we receive some amount the entry we do is:

Credit card (Dr)....... Vendor (Cr).....

while QBO is reversing this entry somehow and making a refund as a payment in Vendor account

Thanks for keeping us posted, @stackArmor. 

Allow me to step in and provide you additional information to help you record a vendor refund. 

You can use a credit card credit with an income account called refund to clear the vendor's profile balance.

Here's how:

1. Select + New.
2. Choose Credit card credit.
3. Find the appropriate account from the Bank/Credit Account drop-down box.
4. Under the Category details, select add new.
5. Choose an income account called refund. 
6. Enter the other needed information.
7. Click Save and close.

Please see the sample screenshot below for your reference: 

I'd also suggest seeking professional help from your accountant on what's the best way to handle the situation. 

I'm also adding these articles for reference:

• Enter a refund from a vendor
• Assign, categorize, edit, and add your downloaded banking transactions

Fill me in if you have additional questions about managing your credit cards in QBO. I'm always here to help. Take care always.

Hello @stackArmor,

I have reviewed the solution you’ve shared and it's correct and accurate. Thank you for sharing your inputs to help address the issue.

We love to see members supporting one another! Have a great day.

Can you elaborate on step 3 more? Im not understanding how to do exactly what you're describing here. The issue i have is the vendor account ends up with additional credit, and I believe this post is the exact solution I'm looking for, but Im just not quite grasping the steps.

i think just creat a bill from the drop down vendor menu and enter it at $0 then save, select pay bill, and you will see the account payable and credits which will equal zero, then save. should be good. took me a while to figure it out also.

I didn't get your suggestion correctly.