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Level 2

Entering a return credit receipt for a vendor

I am running the QB Desktop Pro 2019 version. I do not have my accounts linked and input my receipts manually. I am entering credit receipts for vendors but they are showing up as negative under my accounts payable. Here is an example below of my current workflow. I think I need to record the deposit to recognize the credit in my main bank account but am not sure how to do this properly and link everything together. 

Example

1. Purchased some general tools at Home Depot $100 (Vendor, Expense, not linked to a specific project or job and these are not items that I directly re-sell)

2. Enter the receipt for the Vendor, "Enter Bills", Bill, Save

3. Click on Pay Bills, check the correct bill, and pay in QB 

4. Went back a few days later and returned some of the tools at the Vendor

5. Take the credit receipt that shows -$20 and input it under Enter Bills, click the credit button, enter the info and save. This is where I currently stop.

 

Now these credits for the returned items (-$20) are showing up as negative in my Accounts Payable. I must be missing something here and not recording the credit back into my bank account properly. I do not have a revolving credit account at Home Depot, just make the return and the funds go back to my bank account. I reviewed previous Q/As and cannot locate the one that describes how to record these properly under deposits. 

 

My only other idea/option is to just go back and find the original $100 receipt bill/payment and edit it to show the final $80. 

Solved
Best answer 01-02-2019

Accepted Solutions
Moderator

Re: Entering a return credit receipt for a vendor

Hi, @SG19.

 

I appreciate you for providing the detailed steps you've done to get this working. I'm here to help enter the return credit receipt you received from your vendor in QuickBooks Desktop (QBDT).

 

You're already on the right track on entering the credit receipt! To ensure that amount won't show on your Accounts Payable (AP) report, you'll need to make a deposit and link it to the credit that you've created. Here's how:

 

1. Go to Banking menu at the top, then pick Make Deposits on the drop-down.
2. If the Payments to Deposit window appears, click OK.
3. In the Make Deposits window, select the vendor on the Received from drop-down.
4. In the From Account drop-down,  choose Accounts Payable.
5. Enter the actual amount of the credit receipt in the Amount column, then click Save & Close.

 

 

 

 

Once done, you can now link the deposit to the Bill Credit. Here's how:

 

1. Go to Vendors menu at the top, then pick Pay Bills on the drop-down.
2. Put a checkmark on the Deposit that matches the credit receipt amount.
3. Select Set Credits and apply the Bill Credit you created earlier, then choose Done.
4. Click Pay Selected Bills, then Done again.

 

 

 

That should remove the negative amount on your Accounts Payable (AP) report. For your reference, you may check out this article for further guidance: Record a vendor refund in QuickBooks Desktop.

 

Please let me know how it goes by leaving a comment below. I'll be here if you have any follow-up questions about the process. Have a good one!

View solution in original post

4 Comments
Moderator

Re: Entering a return credit receipt for a vendor

Hi, @SG19.

 

I appreciate you for providing the detailed steps you've done to get this working. I'm here to help enter the return credit receipt you received from your vendor in QuickBooks Desktop (QBDT).

 

You're already on the right track on entering the credit receipt! To ensure that amount won't show on your Accounts Payable (AP) report, you'll need to make a deposit and link it to the credit that you've created. Here's how:

 

1. Go to Banking menu at the top, then pick Make Deposits on the drop-down.
2. If the Payments to Deposit window appears, click OK.
3. In the Make Deposits window, select the vendor on the Received from drop-down.
4. In the From Account drop-down,  choose Accounts Payable.
5. Enter the actual amount of the credit receipt in the Amount column, then click Save & Close.

 

 

 

 

Once done, you can now link the deposit to the Bill Credit. Here's how:

 

1. Go to Vendors menu at the top, then pick Pay Bills on the drop-down.
2. Put a checkmark on the Deposit that matches the credit receipt amount.
3. Select Set Credits and apply the Bill Credit you created earlier, then choose Done.
4. Click Pay Selected Bills, then Done again.

 

 

 

That should remove the negative amount on your Accounts Payable (AP) report. For your reference, you may check out this article for further guidance: Record a vendor refund in QuickBooks Desktop.

 

Please let me know how it goes by leaving a comment below. I'll be here if you have any follow-up questions about the process. Have a good one!

View solution in original post

Level 2

Re: Entering a return credit receipt for a vendor

You noted to assign it to Accounts Payable but should it actually go to the expense code that I first put the original purchase receipt towards? In this example it was under Tools. 

Level 15

Re: Entering a return credit receipt for a vendor

You are doing too much Work.

 

There is no bill to enter; you already paid by using the Credit Card when you bought it.

You go to Banking menu > Enter Credit Card Charge. List on the expenses and items tab, what you just paid for.

 

Or, you used the Debit card = Banking menu > Write Check. Put "debit" for Check #.

 

When you take it back, you use Banking menu > Enter Credit Card Charge in QB, and at the top, change the Radio button to Return. Enter what you Returned.

 

Nothing here is AP. AP is for something not yet paid. You Paid, when you put it on the plastic = took a micro-loan from the card provider.

 

If you get a refund Not to a credit card, but a Debit card, then that is a Deposit entry to Checking. Banking menu > Make Deposit, no vendor name and Not AP. Or, you need to list Items, so that is when you Make a vendor Credit, from Enter Bill,  change the radio button; now the deposit entry has the vendor name and is From AP. The Credit made the negative AP and the deposit makes a Positive AP and you link them using the Pay Bills screen.

Level 2

Re: Entering a return credit receipt for a vendor

Thank you for the assistance! I have it all figured out.

 

 

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