Enter a refund from a vendor

Jena11 · ‎March 19, 2021

Hi community!

New-ish to using QB Desktop in the capacity that I am now in my current position. I received a vendor refund for a bill that had already been paid, and first found this article: https://quickbooks.intuit.com/learn-support/en-us/manage-vendors/record-a-vendor-refund-in-quickbook... - which doesn't actually tell me how to complete this 100%, because in scenario #1 step 3, I could not find the credit/bank deposit to clear that out. I then found THIS article https://quickbooks.intuit.com/learn-support/en-us/vendor-credits/enter-a-refund-from-a-vendor/01/335... - that helped and told me to use the account 'accounts payable' on the deposit, which I was then able to cancel the two out.

My question is, the original account used for this was 'other job related costs' so I'm wondering, do I now need to create a journal entry to add this cost as a credit to the account 'other job related costs'? And if so, how would that actually look because when you try to credit/debit the accounts payable account in a journal entry, it tells you it needs a vendor name as the opposing line. Or am I not thinking of this correctly?

Thanks for the help!

~Jena

JonpriL · ‎March 19, 2021

Hello @Jena11,

You're on the right track in creating a vendor credit and a deposit to enter the refund from your vendor. Let add a few things to make sure the refund is entered correctly.

Normally, there isn't a need to create a journal entry as long as you've selected the correct item on the credit based on the original paid bill. This way, the amount on the item of the credit will offset the original cost associated with your transactions.

But if you're still in doubt about how the credit will relate to your job-cost account, I'd recommend contacting your accountant for the advice needed. And if you haven't yet, this link will help you look for a bookkeeper near you: Business is better with a ProAdvisor.

Additionally, I've also included this reference for a compilation of articles you can use while working with us: Expenses and Vendors for QuickBooks Desktop.

If there's anything else that I can help you with, please let me know in the comments below. I'll be here to lend a hand.

View solution in original post

JonpriL · ‎March 19, 2021

Hello @Jena11,

You're on the right track in creating a vendor credit and a deposit to enter the refund from your vendor. Let add a few things to make sure the refund is entered correctly.

Normally, there isn't a need to create a journal entry as long as you've selected the correct item on the credit based on the original paid bill. This way, the amount on the item of the credit will offset the original cost associated with your transactions.

But if you're still in doubt about how the credit will relate to your job-cost account, I'd recommend contacting your accountant for the advice needed. And if you haven't yet, this link will help you look for a bookkeeper near you: Business is better with a ProAdvisor.

Additionally, I've also included this reference for a compilation of articles you can use while working with us: Expenses and Vendors for QuickBooks Desktop.

If there's anything else that I can help you with, please let me know in the comments below. I'll be here to lend a hand.

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