Returning product

Welcome to the Community, Lipra.

In QuickBooks Online (QBO), there are different ways to record your returned product to your distributor so it would reflect the refund and the inventory. Let me discuss it with you in various scenarios. 

If you're tracking your expenses by creating a check, you can follow the steps provided below.

1. Go to the Expenses button.
2. Locate the vendor credit created.
3. Click to open.
4. On the Quantity column, remain the quantity of the product.
5. Enter the amount as zero in the Amount column.
6. Click on Save and close once done.

In order to check has been removed, run a report on the Products and Services page.

Moreover, if you're tracking your expenses by entering bills in your QBO, Follow these steps to ensure the credit is applied to the correct expense account. Let's first create vendor credit:

1. Select + New, then click the Vendor credit.
2. Choose your vendor in the Vendor ▼ dropdown.
3. Enter Category or Item details, depending on how you store your purchases with this vendor.
4. Once done, click Save and Close.

After that, apply vendor credits to an open bill or future bill. Here’s how you can put the credit to a bill when ready: 

1. Click + New, then choose Pay Bills.
2.  From the list, choose a bill for your vendor. Available credits with your selected vendor will appear in the Credit Applied field.
3. Finish the rest of the fields as you usually do.

You can check this article for further guidelines on recording your vendor refund in QBO: Enter vendor credits and refund in QuickBooks Online.

In addition, if you plan to make modifications to your inventory quantity in your QBO. You can visit and scan through this article that discusses details about it: Adjust inventory quantity on hand in QuickBooks Online.

Let me know if you have other concerns about recording your returning product to reflect the refund and correct the inventory in your QBO. You can reach out to the Community at any time. Take care!