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How do I reconcile a refund check from a Vendor for credits that we received?

I received a refund check from the vendor and put through as a deposit. Now i'm left with invoices and credits on their account that I need to wipe off.  How do I do this?  Do I put through a journal entry?

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QuickBooks Team

How do I reconcile a refund check from a Vendor for credits that we received?

Hi there, @SharonDFC.


There are recommended steps to record a refund in QuickBooks. After depositing the refund amount, let’s record a bill credit and link the deposit.

By doing so, the invoice and the vendor's credit will write off.


First, record a Bill Credit for the refunded amount:

  1. From the Vendors menu, select Enter Bills.
  2. Select the Credit radio button to account for the return of goods.
  3. Enter the Vendor name.
  4. Click the Expenses tab and enter the Accounts on the original Bill.
  5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
  6. Click Save and Close.


Then, let’s link the deposit to the Bill Credit:

  1. To link the deposit to the Bill Credit, you'll need to select Pay Bills from the Vendor menu.
  2. Check the Deposit that matches the Vendor check amount.
  3. Select Set Credits and apply the Bill Credit you created earlier, then click Done.
  4. Click Pay Selected Bills then Done.

More ways to record vendor credits are found in this reference: Record a vendor refund in QuickBooks Desktop


Drop me a reply below if you need further assistance in QuickBooks Desktop.

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