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Level 1

Vendor refund to credit card (Quickbooks online)

How to enter Vendor refund to credit card on outstanding credit memo
We entered a bill for a vendor invoice that was prepaid with a credit card.  We then were issued a credit from the supplier for overcharged freight and we entered that as a credit memo. The supplier then refunded the amount of the credit to our credit card. 

How do we we handle this in QB? There's an outstanding credit memo on the vendor account and we need to somehow apply the refund to the credit card and the credit memo. 
4 Comments
Level 15

Re: Vendor refund to credit card (Quickbooks online)

plus menu vendors>credit card credit

use accounts payable as the account for the amount received and enter the amount, save

use pay bills, select the bill the CC credit created and apply the vendor credit, save

Level 1

Re: Vendor refund to credit card (Quickbooks online)

I was not able to save the transaction, a transaction amount must be set.  Thanks

Level 1

Re: Vendor refund to credit card (Quickbooks online)

I have the same exact question- I was provided a Vendor Credit Memo from the Vendor, after already processing an invoice payment. 

 

The Vendor then used the credit memo to pay another invoice, which left an open credit. 

 

The vendor then refunded the difference, however I cannot seem to match this to the credit memo, and when I add it from the Bank transactions, it applies it as a negative number. 

 

I went in an deducted the amount from the credit memo- and while that brought the balance back to $0.00, it didn't seem like it was the correct way to process the Vendor refund to credit card. 

 

When I tried to apply the "Bank Deposit" steps to process to this transaction, it did not allow me to select the Credit Card account as the account to deposit the refund into. 

 

 

 

 

 

 

Moderator

Re: Vendor refund to credit card (Quickbooks online)

Thanks for sharing enough details of your concern, Sundewurks.

 

No need for you to process a refund since making a deposit will zero out the balance. When your vendor pays the bill using the vendor credit, you can deposit them right away.
 

Here's how to do it:

  1. Click the +New button.
  2. Select Bank Deposit under Other.
  3. Select name in the Received from column.
  4. In the Account column, select Account Payable and enter the refund amount.
  5. Click Save and New.

account payable.PNG

 

Once done, let's go to Pay bills to match the deposited amount. All we have to do is locate the amount and vendor that you've entered into the deposit. Then, put a check mark and click Save.

paybills.PNG

 

For more details related to your concern, you can check out here.

 

Get back to me anytime if you need help when managing transactions in your book. Have a good one!

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