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Super Explorer **

refund check from vendor due to overpayment

a refund check was sent to us due to them overcharging. Would I post the check in QuickBooks under record deposits and for the account- put the refund under the same account that was originally used when the payment was first made? 

11 Comments
Anonymous
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Re: refund check from vendor due to overpayment

Yes, if you don't use items on your bills and/or don't care about that detail you can record the check as a deposit, or part of a deposit, using the expense account originally used on the bill for the thing you were overcharged for.

Super Explorer **

Re: refund check from vendor due to overpayment

Thank you for the reply, there are not items used for bills. Bills are paid immedietly using the write checks method in QuickBooks and everything is put under an expense account.

Super Explorer **

Re: refund check from vendor due to overpayment

I did this and now noticed that on the profit and loss report there is as negative amount for the overpayment next to the original expense account used, why is this? 

QuickBooks Team

Re: refund check from vendor due to overpayment

Hello @Jessica A,

 

Let's open your transactions directly from your Profit & Loss report so we can identify why you have a negative amount for the overpayment.

 

Firstly, recording a refund from your vendor on the Make Deposit window will subtract automatically to your vendor bills and expense. With that being said, let's open your transactions with the negative amount directly on your Profit & Loss report:

  1. Go to Reports.
  2. Select Company & Financial.
  3. Click Profit & Loss Standard.
  4. On your expense account, click the amount with the negative amount.

From there, you can review every detail of your deposit transaction. You can iether delete or recreate your deposit transactions if needed so it'll be posted accordingly.

 

Know that you can always visit our Help Articles page for QuickBooks Desktop in case you need some tips and related article for your future tasks.

 

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to help.

Super Explorer **

Re: refund check from vendor due to overpayment

There are no bills created for expenses. Expenses are paid immediately using the write checks method. When I opened the profit/loss report and viewed the total amount paid for this expense from the beginning of the year to today's date, it has a total amount and the total amount with the negative figure being subtracted is correct. I am still not understanding why it is showing up as a negative figure. I put the overpayment received under the same account that the expense was originaly put under. 

QuickBooks Team

Re: refund check from vendor due to overpayment

Let’s account this refund that you’ve received from your vendor to remove the negative amount from your Profit and Loss report, @Jessica A

 

To account this refund check that is not related to a bill, you must record it as a deposit and then a Bill Credit. Once done, link the Deposit to the Bill Credit.

 

Here’s how to record a Deposit of the vendor check:

 

  1. Go to your Banking menu, choose Make Deposits and click the OK button from the Payments to Deposit window.
  2. In the Make Deposits window, enter the name of the vendor from the Received from drop-down.
  3. Then, enter the correct Accounts Payable account in the From Account drop-down and the refunded amount from the Amount column.
  4. Click Save and close once you’re done.

Then, create a Bill Credit for the refunded amount:

 

  1. Go to your Vendors menu and choose Enter Bills.
  2. Select the Credit radio button to account for this refunded amount
  3. Add the vendor from the Vendor drop-down.
  4. Click the Expenses Tab and provide the Accounts of the original expense and amount.
  5. Select Save and Close once you’re done.

 

You can now link the Deposit and Bill Credit:

 

  1. Go back to Vendors menu and select Pay Bills.
  2. Find the Deposit that matches the Vendor check amount.
  3. Click Set Credits and apply the Bill Credit you created earlier then click Done.
  4. Hit the Pay Selected Bills, then Done.

 

Try to check if you still have a negative amount on your Profit and Loss report. Here’s more information from this article: Record a vendor refund in QuickBooks Desktop.

 

Let me know if there’s anything that you need or help by leaving a comment below. I’m always glad to help in any way I can. Have a wonderful day!

Super Explorer **

Re: refund check from vendor due to overpayment

We do not use the pay bills section in QuickBooks for anything. all bills are  paid right away when they are received so no bill is created and should not be created if it is being paid right away. I have dealt with refunds  from vendors before for example: a parts store and a negative amount has never occurred when I have used the record deposit feature in QuickBooks. I have recorded refund due to overpayments from vendors in the past and put the refund under the same expense account that was used for the original purchase and it worked fine.

Super Explorer **

Re: refund check from vendor due to overpayment

The total amount paid to this vendor for the year so far is showing correctly, the negative amount is showing up with all the other amounts for the year so far, but the negative amount is not being added to the total amount being paid out to them because that is the refund from the vendor. 

Super Explorer **

Re: refund check from vendor due to overpayment

I looked At the standard profit and loss report from Jan-todays date, and the total amount paid to this vendor shows up correctly, there is no negative figure in the total amount under the expense account, the negative figure only shows up if I the month of October is looked at: /- Today's date. I am assuming it shows up as a negative amount because of the refund from the vendor because the vendor gave the refund in October. 

Moderator

Re: refund check from vendor due to overpayment

Let me share some additional information, Jessica A.

 

The Profit and Loss that you're seeing may be the detail type of report, which shows a negative value for expenses because of the bank deposit transaction.

 

The expense account used on the check will post as a positive amount. While the negative one comes from the deposit, which will reduce the expense incurred in QuickBooks.

 

For further reference, check out this article: What are Bank Deposits in QuickBooks?.

 

I'm also sharing this link that will help you in the future: Record and make Bank Deposits in QuickBooks Desktop.

 

Please let me know if you have any follow-ups or other questions. I'm here to help. Wishing you the best.

Super Explorer **

Re: refund check from vendor due to overpayment

Thank you for your reply,

when the overpayment was entered into the record deposits screen  QuickBooks would not allow the undeposited funds account to be chosen for the overpayment, It was put under the original expense account used for this vendor when the expense was paid.

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