Vendor refund and subsequent client refund

Hi there, @jhumphrey53. I'm here to lend a hand. 

To record a refund check received from a vendor for a bill that is already paid, here's what you'll need to do:

To start, you'll need to record a Deposit of the vendor check. Here's how:

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

Then, record a Bill Credit for the returned items:

1. Go to the Vendors menu at the top.
2. Choose Enter Bills.
3. Select the Credit radio button to account for the return of goods.
4. Enter the Vendor name.
5. Select the Items Tab.
6. Enter the returned items with the same amounts as the refund check.
7. Select Save & Close.

After that, link the deposit to the Bill Credit. Let me show you how:

1. Go to the Vendors menu at the top.
2. Choose Pay Bills.
3. Check the Deposit that matches the Vendor check amount.
4. Select Set Credits.
5. Apply the Bill Credit you created earlier.
6. Click Done.
7. Choose Pay Selected Bills, then select Done.

For more details about this process, see this article: Record a vendor refund in QuickBooks Desktop.

As for refunding your client, you can create a credit memo and decide on how you want to handle the credit. To help you choose, visit this link: Give your customer a credit or refund in QuickBooks Desktop for Windows.

Let me know if you have questions. I’ll be here to help. Have a good one!