How to enter a refund charge on credit card for returned items?
I am on the same situation and QBO help has not been of help at all.
My supplier charged my credit card with 402.48 then refunded me on the same credit card with 0.07 since the bill was for 402.41.
I have two banking transactions, same BF supplier, done on the same credit card:
One for 402.48 SPENT
One for 0.07 RECEIVED
This is what I have done in QBO:
1. Created a bill for 402.41 for supplier BF
2. Made a payment of 402.48 on that bill of 402.41 - so that I can match it to the 402.48 from my banking downloaded transactions
2.a The payment of 402.48 was applied to the invoice but I got this message "This transaction will create an additional credit in the amount of $0.07", this means that the supplier will owe me 0.07, that is fine.
3. Created a credit card credit where the Payee is my BF supplier, Bank Credit Account is the same credit card BF supplier took those 402.48 from, Category on the Category Details is the same I used on my invoice, Sales Tax is the same Tax from my invoice and Amount is 0.07
4. Matched the 0.07 from my banking transactions to the credit card credit from step 3 - This should balance off everything and my supplier should owe me zero, however when I go to Expenses > Suppliers I see -0.07 as an open balance, meaning that BF still owes me 0.07
Thank you for sharing a detailed explanation of the steps you've taken so far. Allow me to clear things up for you.
Everything you mentioned above appears to be in order. For Step 3 though, instead of using the same account you used on the bill transaction, use Accounts Payable instead. This will offset the negative amount showing up on the vendor's balance.
On the other hand, take a look at this article for the steps on how to enter a customer's credit card payment: Refund a credit card payment in QuickBooks Online. You'll also find notes about the process, as well as a short description of how fees are charged on credit card refunds.
Let me know if you have other questions by leaving a comment below. I'll be sure to get back to you.