Customer/3rd Party Refund

Hi there, RonG-Fresno.

We'd want to make sure that we get this sorted out. Can you tell us if the lender was set up as a vendor? 

For now, it's best to create a journal entry to clear out the balances of the customer and vendor in QBO. This is to make sure that the invoices and bills are not affected. Here's how to create a journal entry in case you need an extra guide:

1. Click the + New button and select Journal Entry.
2. Enter all the details of the journal entry including the amount, date, journal entry number, and the affected accounts. I highly recommend reaching out to your accountant to confirm what accounts to use.
3. Look for the name of the lender in the Name column.
4. Click Save.

Here's an article about this process for more details: Create a Journal Entry in QuickBooks Online.

Although, other members of the Community forum might also jump in and share their ideas. Just keep an eye for any notifications from the Community so you can read all the responses from other users. 

I also have these additional articles to give you for additional references when getting refunds and recording journal entries:

• Enter a Refund From a Vendor
• Reverse or Delete a Journal Entry in QuickBooks Online
• Print a Journal Entry Report

Visit us anytime you have questions or other concerns. I'll be around to assist you again. Thanks!

The lender is not a vendor but a payment method. The materials supplier is a vendor. So it looks like my best method is to make a journal entry with the first line being to accounts payable/vendor and the second line to accounts receivable/customer. I was planning to use that method but had hoped something could be worked out with receiving a payment and paying a bill.