Rebate from Vendor

1. Determine the deposit date and total bank deposit amount that the rebate was included in

2. Make sure all other deposits for invoice payments or sales receipts went to undeposited funds

3. Go to Plus Icon, "Bank Deposit" and select the payments/deposits received with rebate deposit

4. "Add Funds" to the deposit to account for the rebate check deposit, selecting the vendor and expense account that you wish to credit for the rebate deposit amount

5. Make the total deposit on the same date and total deposit amount that went into the bank

6. Match this total deposit in your bank feed

Thanks for joining in this, universalpoolpro.

I'd be delighted to help you pay bills using vendor credits.

First, enter the vendor credit. Here's how:

1. Select the Plus icon (+) at the top, then choose Vendor Credit.
2. Choose the appropriate vendor name.
3. Enter the Date, Amount, and Account.
4. Click Save and close.

Then, pay the bill using the vendor credit. Let me show you how:

1. Select the Plus icon (+) at the top, then choose Expense or Check.
2. Select the vendor name.
3. Leave the Reference / Check #, Date, Amount and Memo fields blank.
4. From the Add to Check section, select Add for the outstanding bill and vendor credit (see the screenshot below).
5. Click Save and close.

For the detailed steps, check this article: Issuing vendor credits and refunds.

That should work for you. If you have further questions about QuickBooks Online, please to let me know. I'm always happy to help. Have a good day! 

Hi there, universalpoolpro!

Thank you for replying and let me help you record the cash you've received from your vendor.

You may consider recording it as a Bank Deposit. But I recommend checking with your accountant for the specifics on what account to choose.

Here's how to record a bank deposit:

1. Go to the Plus icon.
2. Under Other, select Bank Deposit.
3. Under the Account drop-down, choose the bank account where you want to deposit the amount.
4. Under RECEIVED FROM column, select the name of the vendor.
5. Under the ACCOUNT column, choose the account where it should be posted. I encourage asking your accountant about the accounts.
6. Enter the amount.
7. Click Save and close.

I've attached a screenshot below for your reference.

Also, here's an article you can read on for more details about recording a deposit: How to Record Bank Deposits?

You can always go back to this thread if you have any other concerns. Have a good one!

There is no need to enter this as a vendor credit or vendor check. You are accounting for the receipt of the rebate from the vendor by adding it to the bank deposit and assigning it to the expense or cost of goods sold expense account that you originally used to make purchases with this vendor. This is not a credit that you will be using against a vendor invoice. And since you deposit the refund check you need the amount to be added to the other deposits for the date you deposited it in order to have a "match" to the total deposit that comes through the bank feed. You can include the vendor name and check number with the entry for your records.

If the rebate check was deposited "by itself" and "no other deposits" were made that day, you can record it alone as a bank deposit. But if this deposit was made with other deposits for the day, you will want to select those deposits (received invoice payments or sales receipts) and "add funds to this deposit" as seen in the snapshot Johnpril_L provided for you to account for the vendor rebate deposit you made. The key is making sure that the total deposit amount matches what went into the bank and came through the bank feed, then you will have a "match".

Thanks so much for sharing! This is EXACTLY the scenario I was having and very helpful!