cancel
Showing results for 
Search instead for 
Did you mean: 
QualGenSer
Level 2

How to enter a credit memo from a vendor for returned items, wiht a restocking fee

I've looked at a lot of posts, but can't find one that really explains my situation.

I have QB Pro 2019 Desktop.

I had placed an order through one of my vendors, and paid with a credit card. 2 items were accidentally ordered wrong, and had to be returned. The vendor charged me a 15% restocking fee for those 2 items. Say the times were $100 each. I was refunded $85 for each (after the restocking fee). My vendor credited $170 back to my credit card.

What is the proper way to do this? I can't just cancel out the original invoice, as there were a lot of other items on the order that were correct.

One post I read said to do a banking deposit as the first step, but my banking tab doesn't list my credit card.

I tried to do a enter credit card charge/credit etc, but when I do that, if I only put the $85 refund in there, it wants me to change the purchase price of the item. If I input the full amount of $100, how do I account for the restocking fee? I wouldn't be able to use an expense item, or it would give me a credit on the expense. account.

Please keep this as simple as possible - I'm a mechanic, not an accountant.

Thanks.

3 Comments
john-pero
Community Champion

How to enter a credit memo from a vendor for returned items, wiht a restocking fee

Banking>Enter Credit Card Charges

Click on the button to enter a credit instead of a charge.

Enter the returned items at $200

Enter the restocking fee at MINUS $15x2

The credit should then total $170

 

You may wish to create a new expense account for the restocking fee - or you can just post the charge against the same expense account of the original purchase. In effect you paid $30 to "borrow" the wrong parts and it is a cost of doing business

QualGenSer
Level 2

How to enter a credit memo from a vendor for returned items, wiht a restocking fee

So I would enter the items at my cost, I got that, but for the restocking fee, would I need to open the Expenses tab to enter it? And QB will actually let me put a negative amount in there? Sorry if I seem ignorant, but like I said - I'm a mechanic, not an accountant.

 

Maybelle_S
QuickBooks Team

How to enter a credit memo from a vendor for returned items, wiht a restocking fee

Hello there, @QualGenSer.

 

Yes, you can create a new expense account using the Enter Bills tab in the Home Page of your QuickBooks. Enter a negative amount as long as it does not result in a negative total.

 

Here's how:

  1. From the Home Page window, click Enter Bills.
    3.4.PNG
  2. Select the Vendor drop-down arrow, then choose your vendor.
    3.0.PNG
  3. Click the Account drop-down arrow, then choose your expense account.
    3.1.PNG
  4. Enter the Amount
    3.2.PNG
  5. Click the Customer drop-down arrow, then choose your customer.
    3.3.PNG
  6. Click Save & Close.

Once done, you can now pay your bills. Here's the article: How to pay the bills in QuickBooks Desktop.

 

Don't hesitate to leave a comment below if you have further clarifications. Have a good day!

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us