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Level 1

Vendor refund

We received a refund check from a vendor on an invoice pd via CC for material that was returned.  The vendor took the 3% CC convenience fee from the refund (which he did not charge us at the time of purchase) and in addition, he applied monies to  2 open invoice we had just created with them.  How do I show the check as a deposit at the same time show the items returned and not in inventory and show the two invoices as paid.  We did not return all the material, but most of it.  I hope you were able to follow this 

3 Comments 3

Vendor refund

Welcome to the Community, dgick.

Let me lend a hand in showing the check as deposit and invoices as paid in QuickBooks Desktop.


In order to show the check as deposit and invoices as paid in QuickBooks, you can follow the step-by-step process below.


Here's how:


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

  2. Record a Bill Credit for the returned items:
    1. From the Vendors menu, select Enter Bills.
    2. Select the Credit radio button to account for the return of goods.
    3. Enter the Vendor name.
    4. Click the Items Tab.
    5. Enter the returned items with the same amounts as the refund check.
    6. Click Save & Close.

  3. Link the deposit to the Bill Credit:
    1. From the Vendors menu, select Pay Bills.
    2. Check the Deposit that matches the Vendor check amount.
    3. Select Set Credits and apply the Bill Credit you created earlier then click Done.
    4. Click Pay Selected Bills > Done.

You can get more details in this article: Record a vendor refund in QuickBooks Desktop.


Drop me a reply below if you need further assistance about vendor refunds in QuickBooks Desktop. Have a great day.

Level 1

Vendor refund

In the 3rd step, when I open Pay Bills I don't see the Deposit that I entered on Step 1. I have entered the vendor check received in Make Deposits & and entered a Credit in the Vendor Cent: Enter Bills. What am I missing? Thanks.


Vendor refund

Hello TheKeeper,


Thank you for posting here in the community about the steps provided by my colleague. I have some insight into this matter that I'm sure you'll find helpful.


The deposit will only show when paying bills if you choose Accounts Payable as the account for the transaction. To review, you can follow these steps:


  1. Click the Lists tab at the top menu.
  2. Select Chart of Accounts.
  3. Double-click the account.
  4. Search for the deposit.
  5. Make sure to select Accounts Payable as the account.

The screenshots below will serve as your visual guide:





I recommend this article to assist a user with the recording deposits:


Record and make Bank Deposits in QuickBooks Desktop.


Please don't hesitate to come here with all of your QuickBooks needs, such as the deposit. The Community is here to ensure your success.

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