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AmandaMoen
Level 2

Received an Expense Reimbursement Check from a Vendor

We recently received a check for $500 from one of our main vendors.  The check is to reimburse our VP for travel expenses to their corporate offices.

 

How do I deal with entering this check for our deposit?  

 

I had looked at  "Record a vendor refund in QuickBooks Desktop", but none of those scenarios really apply.

Solved
Best answer January 02, 2020

Best Answers
JessT
QuickBooks Team

Received an Expense Reimbursement Check from a Vendor

I'm glad to know you tried finding an article before posting here, Amanda. We can still follow the same steps to make a deposit, but we'll use specific accounts on other transactions. I'll walk you through the steps.

 

Before we start, I assume that you've already recorded the travel expense as a check or a paid bill. If not please do so, and take note of the account you used because we'll use it later. In my example, I wrote a check to American Airlines and used the Travel Expense account.
 

 

When recording the reimbursement check, we'll want to make a deposit since it will be returned to your business account. In this transaction, we'll also use the Accounts Payable account since we will tag the vendor's name to show that it was coming from them.

  1. From the Banking menu, select Make Deposit.
  2. Select the name of the vendor, choose Accounts Payable, enter a memo, and enter the amount, as shown below.
  3. Click Save & Close.

Since we tagged the vendor's name, the deposit transaction will also post as a credit to the vendor profile, which shouldn't be. Therefore, we will remove and use it to offset the travel expense we recorded first. We'll do this via journal entry. You can have an accountant check this transaction to make sure you get the correct accounting.

  1. Click the Company menu.
  2. Choose Make General Journal Entries.
  3. On the first line, select Accounts Payable account, enter the amount in the Debit field and tag the vendor in the Name field.
  4. On the second line, select the expense account you use (Travel Expense in my case) and enter the amount in the Credit field.
  5. Enter a memo for your reference, and click Save & Close.

After the steps above, you can pull up a Vendor Balance Detail report to see how the transactions reflected in the vendor's account. You can also run a quick report of the travel expense account you used.

 

If you need help recording reimbursements or other entries that you find a little bit challenging, feel free to visit us back in the Community.

View solution in original post

BettyJaneB
QuickBooks Team

Received an Expense Reimbursement Check from a Vendor

Glad to have you back here in Community, @AmandaMoen.

 

I appreciate you following the steps presented by my peer above. However, to record the vendor's expense reimbursement accurately, you'll need to link the deposit to the bill credit.

 

To do that:

  1. Hit on Vendors at the top menu bar.
  2. Click on Pay Bills.
  3. Select the Deposit that matches the Vendor check amount.
  4. Press on Set Credits and apply the Bill Credit you created earlier then press Done.
  5. Tick Pay Selected Bills.
  6. Tap on Done.

You can check out the scenario number 1 found in this link for your reference on how to record vendors refund: Recording refunds you received from a vendor

 

I'm also adding here some articles that you can use about managing the receivables and parables of your business: 

I'll be around to help if there's anything else you need. Just leave a reply below, and we'll take it from there. Have a lovely day!

View solution in original post

6 Comments 6
JessT
QuickBooks Team

Received an Expense Reimbursement Check from a Vendor

I'm glad to know you tried finding an article before posting here, Amanda. We can still follow the same steps to make a deposit, but we'll use specific accounts on other transactions. I'll walk you through the steps.

 

Before we start, I assume that you've already recorded the travel expense as a check or a paid bill. If not please do so, and take note of the account you used because we'll use it later. In my example, I wrote a check to American Airlines and used the Travel Expense account.
 

 

When recording the reimbursement check, we'll want to make a deposit since it will be returned to your business account. In this transaction, we'll also use the Accounts Payable account since we will tag the vendor's name to show that it was coming from them.

  1. From the Banking menu, select Make Deposit.
  2. Select the name of the vendor, choose Accounts Payable, enter a memo, and enter the amount, as shown below.
  3. Click Save & Close.

Since we tagged the vendor's name, the deposit transaction will also post as a credit to the vendor profile, which shouldn't be. Therefore, we will remove and use it to offset the travel expense we recorded first. We'll do this via journal entry. You can have an accountant check this transaction to make sure you get the correct accounting.

  1. Click the Company menu.
  2. Choose Make General Journal Entries.
  3. On the first line, select Accounts Payable account, enter the amount in the Debit field and tag the vendor in the Name field.
  4. On the second line, select the expense account you use (Travel Expense in my case) and enter the amount in the Credit field.
  5. Enter a memo for your reference, and click Save & Close.

After the steps above, you can pull up a Vendor Balance Detail report to see how the transactions reflected in the vendor's account. You can also run a quick report of the travel expense account you used.

 

If you need help recording reimbursements or other entries that you find a little bit challenging, feel free to visit us back in the Community.

View solution in original post

AmandaMoen
Level 2

Received an Expense Reimbursement Check from a Vendor

The $500 is still showing up as a credit.

BettyJaneB
QuickBooks Team

Received an Expense Reimbursement Check from a Vendor

Glad to have you back here in Community, @AmandaMoen.

 

I appreciate you following the steps presented by my peer above. However, to record the vendor's expense reimbursement accurately, you'll need to link the deposit to the bill credit.

 

To do that:

  1. Hit on Vendors at the top menu bar.
  2. Click on Pay Bills.
  3. Select the Deposit that matches the Vendor check amount.
  4. Press on Set Credits and apply the Bill Credit you created earlier then press Done.
  5. Tick Pay Selected Bills.
  6. Tap on Done.

You can check out the scenario number 1 found in this link for your reference on how to record vendors refund: Recording refunds you received from a vendor

 

I'm also adding here some articles that you can use about managing the receivables and parables of your business: 

I'll be around to help if there's anything else you need. Just leave a reply below, and we'll take it from there. Have a lovely day!

View solution in original post

BrettA
Level 1

Received an Expense Reimbursement Check from a Vendor

The method listed here by BettyJaneB does not work.

 

It will only work if there is an outstanding bill from the vendor that hasn't been paid yet.  That is what the screen shots appear to be showing, an outstanding bill that you click on, then use the credit (created by your deposit) to pay for it.  

Of course, in the real world, this is never going to happen because your vendor is not going to refund you for a bill you have not yet paid.   

I have a vendor who is paid by check on delivery.   We returned an item to that vendor and they cut us a check.   I have deposited the check and I have done a credit memo for the returned item, but I can find no way to link the two.       Can anyone help?  QB 2021 Desktop.   Thanks. -Brett

BrettA
Level 1

Received an Expense Reimbursement Check from a Vendor

This process from JessT does not work.

Laying out the General Journal entry as shown in the screen shot will double the amount of the credit on file with the vendor.    Laying it out the opposite (swapping credit and debit) does nothing to remove the credit from the vendor.     Thanks -Brett

MaryLandT
QuickBooks Team

Received an Expense Reimbursement Check from a Vendor

I can help you link the deposit to the credit memo, BrettA.

 

Make sure to select Accounts Payable as the category of the deposit. Doing this will help link the transaction to the credit. 

 

Check out this link again: Record a vendor refund in QuickBooks Desktop. Then, follow Scenario 2 for instructions and detailed steps.

 

I'm also adding this article to manage and balance your transactions: Reconcile an account in QuickBooks Desktop.

 

Keep me posted if you have follow-up questions about linking the deposit to the credit. I'll be right here to provide the information that you need.

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