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Level 3

Recording a refund from a vendor

I received a refund from a insurance vendor. I followed the instructions QB gave for recording it, 

1) Entered a Deposit under banking

2) Entered a Credit under Vendor > Enter Bills


The third step was to go to pay bills, but there was no bill there to pay. Now I'm showing a deposit, that I haven't made and can't delete. I have other receipts that I have to deposit, but those won't match the credit from the vendor nor will the deposit amount agree with the other receipts. 


This is a mess. I ought to be able to enter this via the General Journal, and have QB treat it as an amount to deposit along with other receipts. 


How to I correct this and repeat it in the future for vendor refunds?

7 Comments 7

Recording a refund from a vendor

Hello there, neyerbj.


As long as you've entered a bill, you can link this one to the deposit you created using the Pay Bills feature. First, let's make sure to select the Show all bills option to ensure the credit will show up. Here's how:


  1. Go to the Vendors menu and select Pay Bills.
  2. Click Show all bills. Then, put a check-mark on the credit you've recorded.
  3. Click the Set Credits option and choose the credit you created to reduce the total amount payable.
  4. Once done applying for the credits, select Done.

For more details, feel free to visit this link: Record a vendor refund in QuickBooks Desktop.


Let me include about using an Asset account to track the prepayment or deposits for prepaid parts or services, you can check the complete steps in this article: Record supplier prepayments or deposits for prepaid parts or services.


Please don't hesitate to comment below if you have other questions or need further clarifications. Stay safe and be well.

Level 3

Recording a refund from a vendor

Yes, I read the directions and these are outlined in QB Help, and I followed them step by step, but there is no listing in Pay Bills. Yes I have the Show All Bills radio button clicked and there is no listing for what was recorded as a credit under Enter Bills. I even tried to show bills just from the vendor in question and still nothing. I even entered a bill from another vendor and it shows up. Either QB doesn't work properly or the directions are wrong. That is why I posted the question here. 


I now have a recording that I deposited funds, when I haven't deposited any. The Insurance Expense account also shows a credit from the Deposit Funds entry and an extra refund amount credited to that account in the Enter Bills section, so that account balance was incorrect. I deleted the Credit entry under Enter Bills to correct the balance of the Insurance Expense account. 


QB needs to correct this issue. QB needs to allow the entry through the General Journal and have the debit to Checking show up as funds in transit until it clears the reconciliation and added to Undeposited Funds, but QB doesn't do that. Instead it has a convoluted procedure that apparently doesn't work as directed. 


What I need to know now, is how to correct this mess that QB created by poor directions in Help and to not repeat this issue in the future. 


QuickBooks Team

Recording a refund from a vendor

I appreciate your time getting back here, neyerbj.


To clarify, did you use the Insurance Expense account in the deposit you have entered? If so, this is the reason why the vendor is not showing up in the Pay Bills window.


What you can do is open the deposit you have recorded and change the From Account drop-down to Accounts Payable. This way, you can link the deposit and credits when you go to the Pay Bills page.


Here's a sample screenshot for a visual reference:



I'm sharing this article for more information: Record a vendor refund in QuickBooks Desktop.


Please let me know if you're able to record the transactions. I'll be around to help you out again.                   

Level 3

Recording a refund from a vendor

I've tried explaining, I've already done that. I done that to begin with and there is nothing to select in the Pay Bills section. That's why I posted this question. 


I don't know what to say other than the directions in Help are not correct. 

Level 3

Recording a refund from a vendor

Also, the screen shot you show, doesn't match my version on QB. Please don't tell me I need to spend thousands more dollars to get something that works. 

QuickBooks Team

Recording a refund from a vendor

Hey there, @neyerbj.


Can you share with us the image you're seeing right now in your Pay bills section? This way, we can compare your screenshot to the QuickBooks Desktop version that we are using. This will also allow us in providing you the appropriate steps on how to record the vendor refund.


In addition, let's make sure that you're using the Accounts Payable account when following step number 1 in this article: How to record a vendor refund in QuickBooks Desktop


Once you select this account, it would make sure that the transaction will automatically show in the Pay bills section. Once checked and you're still getting the same issue, I recommend running some basic troubleshooting steps in your company file. 


Let's start by updating QuickBooks Desktop to its latest release. Doing this will help you fix some minor issues in your company file. You can also run the Verify and Rebuild data tool to determine if there's any data damage in your Desktop file and fix it by rebuilding your data.  


I'll be here if you have other questions. You take care and have a great day!

Level 3

Recording a refund from a vendor

I have a subscription and QB automatically updates itself, so it has the latest version. It doesn't need to be rebuilt. The problem is that QB doesn't work the way it's supposed to, or at least the way the directions indicate it is supposed to, and it isn't the first time I've run up against this problem. 


I'm unable to get this to upload a screen capture. Should I have been surprised? 


As far as I'm concerned, I'm done. When I recorded the refund as a deposit, QB debited and credited the correct accounts, so from a balance standpoint it balances. It is just that the directions for doing this is incorrect and QB doesn't allow me to handle the refund as money received and simply deposit it as a single transaction along with all my other receipts. 



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