Exactly... so simple to explain yet the support bot keep coming back with a list of confusing concepts. We dont want to click the New button sirs! All we want is to match the refund with the expense to zero it out.

Did you figure out how to do it?

This is ridiculous... I'll ask the same question everybody else is asking, hoping Intuit understands that the replies are not helping.

• I made a payment with credit card
• The payment got refunded
• How do I categorize the refund so that it zero's out the initial payment?

I bolded "categorize" because this is what I want to do. It is sitting on the transactions to be categorized and I just want to categorize it. 

I don't want to click new and create something that is irrelevant. 

Can anyone help?

Same issue as everyone else. Any useful answers out there??

Hello there, Brian.

Let me help you categorize your vendor refund transaction in QuickBooks Online (QBO).

Recording a vendor refund depends on how you record your purchases. In your case, we can create a vendor credit and ensure it hits the expense account you use for a specific vendor. 

You’ll want to take note that this process is for recording purposes within your QBO. This option allows you to match your real-life bank transactions to your company file. 

Here’s how:

1. Click the + New icon and select Vendor Credit.
2. Select your vendor in the Vendor dropdown.
3. Enter the Category details or Item details depending on how you record your purchases. Usually, this is the category, product, or service you’re getting credit for.
4. Lastly, click Save and Close.

Next to it, deposit the money you got from the vendor:

1. Click the + New icon and select Bank Deposit.
2. Select the account where you got the refund in the Account dropdown.
3. Enter the details needed in the Add funds to this deposit section. For the Account section, please select Accounts Payable so you can tie the refund to the vendor credit.
4. Once you fill out all the information needed, click Save and Close.

Then, let’s pay the bill to connect the bank deposit to the vendor credit

1. Select + New and click Pay Bills.
2. Choose the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should show US $0.00.
3. Select Save and Close.

After following the steps above, go back to your bank feeds and look for the vendor refund transaction. Then, a match should be available in the feeds. You can click the Match button under the Action column to link them. 

Once done, you can refer to this article to reconcile your account. This ensures the accuracy of your book and avoids any discrepancies.

Let me know if you have more concerns about your bank transactions. The Community is 24/7 available to help you. Have a good one!

Thank you for this reply! My company has the "Simple Start" subscription for Quickbooks, which means I do not have access to the "Vendor Credit" option under this plan.

How should I categorize a return from a vendor showing up in the Bank Feed with my subscription plan (i.e. without Vendor Credit/Bill Pay options)?

Hi there, @Gangle. I'm glad to help you categorize your vendor return in QuickBooks Online (QBO).

If you want to categorize the transaction on your banking page, you can choose any income account since we're unable to suggest any specific account for you. I also recommend you reach out to your Accountant so we can ensure that you categorize the transactions accurately and avoid data messing up with your accounts. They know what's best for your business. If you’re not affiliated with one, you can check our ProAdvisor page so we can help you find one from there.

Furthermore, if you want to record the vendor refund to your QuickBooks account, you can make a bank deposit to record it since you don't have the Vendor credit option. 

See this article for details on managing bank deposits: Record and make bank deposits in QuickBooks Online.

You can also check these articles for future reference:

• Categorize and match online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

You can always get back if you have other concerns managing your transactions in QBO. I'm always here to assist you. Have a good one!