How to enter a repayment of an overpayment?

I appreciate your efforts and time in bringing this concern to us. I'll provide further information about recording a refund in QuickBooks Desktop (QBDT).

Here's how to record a refund from your vendor to offset the negative balance:

1. Go to the Banking menu, then select Make Deposits.
2. If the Payments to Deposit window appears, select OK.
3. In the Make Deposits window, select the Received from drop-down and choose the vendor who sent you the refund.
4. In the From Account drop-down, select the appropriate Accounts Payable account.
5. In the Amount column, enter the actual amount of the Vendor check.
6. Select Save & Close.

Now, you can link your deposit to the Bill Credit. Here's how:

1. From the Vendors menu, select Pay Bills.
2. Check the Deposit that matches the Vendor check amount.
3. Select Set Credits and apply the Bill Credit you created earlier then select Done.
4. Select Pay Selected Bills, then select Done.

Moreover, I'm adding this helpful article as your reference in running an expense report in QBDT: How to run and save a monthly expense report by vendor.

Please don't hesitate to visit the Community again if you have any further concerns regarding vendor refunds. Take care!

Hi there!  

That works technically but there are two issues.  Please look at screenshot.  

1) Where does the transaction show in the Vendor Information?   It should show the amount credited but it's $0.00. 

2) Also, how do you change these to + and -'s.  All transactions show negatives (-) but that's not true.  The Bills are a + balance and the payments are a negative.  If you run a report, all transactions are negative. 

Thanks for the help! 

Hi there. Thanks for getting back to the thread.

Let me join in this conversation and provide you with further info about recording vendor refunds in QuickBooks Desktop.

Transactions reflected in the Transactions list depend on how they are created inside QuickBooks. Once you create a bill and bill payments, they will show as a negative amount to determine that they are expense transactions. Also, all of your expense transactions created in the program will be shown in this section. Just make sure that the Show, Filter by, and Dates are set All.

If you want to show the bills in positive amounts, simply filter the Transactions list in the Vendor Information to Bills. 

If the Show drop-down list in the Transactions menu is filtered to All Transactions, then changing the amount signs is unavailable. 

You can also double-click the bill payment that's showing a zero amount. This way, you can review the transaction and verify the cause of the issue.

Aside from that, I've replicated the steps based on your scenario and performed the suggestions provided by my colleague above. This is what my vendor's Transactions List window looks like. 

If you need help reviewing your transactions, I'd advise consulting your accountant. They have the expertise to examine your records and take appropriate measures to ensure your books are accurate.

For additional reference in recording vendor refunds, you can check this article: Record a vendor refund in QuickBooks Desktop. This provides detailed instructions and covers multiple scenarios, ensuring you can accurately record refund transactions within QuickBooks.

Please let me know if you have further questions about recording vendor refunds in QuickBooks Desktop. I'm always here to help.

Hello, 

Please screenshots. This doesn't make any sense.  It shows bills = $39,015. 

It shows bill payments of $48,654.  

 Thats numbers don't equal 0 but in reality it's actually 0.  

How do you do this entry so when someone is reading this report in 3 months and doesn't know the transaction can make any sense of this?  

The numbers should be:  

+$15,000 Bill

-$20,000 payment

+$5,000 refund

= $0.00 balance

All the numbers can't be negative or the report doesn't make sense.  None of the math will work. 

Thoughts?  

Let me add some information, oldcreekhomes. 

As stated by my colleague, the transactions that are displayed in the Transactions list within QuickBooks are dependent on the method used to create them. Specifically, if you create a bill and subsequently make bill payments, these transactions will be listed as negative amounts to indicate that they represent expense transactions. This approach helps in accurate tracking and management of expenses incurred by the business.

Moreover, when you linked the credits to the deposit, it means that the bank deposit was used to offset a bill payment check that was worth 0. As a result, the bill payment check will be recorded as having a zero value since it has already been refunded and credited by the bank deposit. This is because when you link credit to a deposit, it reduces the amount of money that is available in your account and can be used to pay off any outstanding bills or expenses. 

You can visit this article for your reference in recording vendor refunds in QuickBooks Desktop (QBDT): Record a vendor refund in QuickBooks Desktop. This provides detailed instructions and covers multiple scenarios, ensuring you can accurately record refund transactions within QuickBooks.

I'm also adding this helpful article as your reference in running an expense report in QBDT: How to run and save a monthly expense report by vendor. This report will show how much you're paying each vendor on a monthly basis. 

Let us know if you have further questions about vendor refunds in QBDT. The Community is always available to help you anytime. Best regards. 

@oldcreekhomes 

"1) Where does the transaction show in the Vendor Information? It should show the amount credited but it's $0.00."

Double-click on the bill or bill payment.  Click on 'Reports' at the top of the page.  Click on 'Transaction History'.

"2) Also, how do you change these to + and -'s. All transactions show negatives (-) but that's not true. The Bills are a + balance and the payments are a negative. If you run a report, all transactions are negative."

That's normal.  Bills and bill payments both show as negative under a vendor.  

To resolve this: When you made the $5K overpayment to XYZ Concrete, that reduced A/P by $5K.  Assign A/P to the deposit and select XYZ Concrete.  Then, go to Pay Bills and apply the credit from the overpayment to the bill created by the deposit and you're all set. 

@oldcreekhomes 

"How do you do this entry so when someone is reading this report in 3 months and doesn't know the transaction can make any sense of this?"

Under the vendor, when you select 'All Transactions' on the 'Show' drop-down, all amounts are negative.  If you select 'Balance Details', bills are positive and bill payments are negative.  The 'Balance Details' option is what you're looking for.  

@Rainflurry Thank you so much for the explanation.  Balance Details is what I was looking for!  

One last thing.  This is in the balance details.  Is there anyway to show this correctly as a credit so the numbers add up?