Applying refund check and invoice to credit invoice

I know, I know!  I wrote down the wrong amounts!

It should be:

Returned materials = $50.00

New materials purchased = $30.00

Refund check received = $20.00

I can help you apply a refund check to your credit memo for those returned materials, @Kari66. 

First, we can create a credit memo. Here's how: 

1. Go to the Customers menu, and select Create Credit Memos/Refunds.
2. From the Customer: Job drop-down, choose your customer.
3. Enter the items you're giving credit for, then select Save & Close.

Once done, an available credit window appears where you can choose how to handle your credit. We can select to Apply a credit to an invoice. I'll show you how: 

1. Ensure you choose Customer: Job when you create the credit memo. 
2. This will open the Apply Credit to Invoice window.
3. Select the credit you want to apply automatically and select Done.

To give you a reference in doing the process, you can visit this article: Give your customer credit or refund in QuickBooks Desktop for Windows. 

After everything is settled, we can categorize your transactions correctly. We can proceed with the reconciliation process if you're ready. Check out this guide: Reconcile an account in QuickBooks Desktop.

Keep me posted if you still have questions about managing your transactions in QuickBooks Desktop. I'll be around for you. Have a great day.

I'm sorry, I should have clarified that the refund is from a vendor for materials we purchased and later returned. 

Thanks,

Kari

Thanks for following up with the Community, Kari66. I appreciate your detailed information.
 

To apply a vendor refund check with a bill, you'll initially need to record a deposit of the check.
 

Here's how:
 

1. In your top menu bar, go to Banking, then Make Deposits.
2. If the Payments to Deposit window appears, click OK.
3. From your Make Deposits window, use the Received from drop-down list and specify an appropriate vendor.
4. In your From Account drop-down, choose an Accounts Payable account.
5. From the Amount column, enter an amount. You'll want to confirm this matches your check's amount.
6. Specify the remaining information in your Deposit.
7. Select Save & Close.

After recording the deposit, you'll need to record a bill credit, then link both records.
 

Please don't hesitate to send a reply if there's any questions. Have an awesome Thursday!

How do I clear the credit from the vendor when I recorded the check received?

I see you're looking to clear the credit from the vendor after recording the check received in QuickBooks Desktop, KathyP1964. I'll guide you on how to ensure your vendor balances are accurate. 

To clear the credit from a vendor when you have recorded the check received in QuickBooks Desktop, you can follow these steps:

1. Open QuickBooks Desktop.
2. Go to the Vendors menu, then choose Vendor Center to view a list of your vendors.
   
3. Locate the vendor for whom you want to clear the credit.
4. Look for the vendor credit you want to delete or void, then double-click to open.
   
5. In the Main tab, hit the Delete dropdown arrow to Delete or Void the credit.
6. Select Yes to confirm.

You can also consider creating a Journal Entry (JE), in which you will credit the amount from Accounts Payable (AP) and debit the Equity Account. Also, please ensure that you select the correct Vendor for the AP. 

I've also added this article to guide you on how to properly record refunds you received from a vendor based on different scenarios: Record a vendor refund in QuickBooks Desktop.

If you encounter any challenges or need further assistance during the process, please feel free to reach out. Your dedication to maintaining accurate vendor transactions is commendable, KathyP1964. I'm always here to support you.

Thank you so much, that worked!

I'm so glad to hear that, @KathyP1964. 

In Community, we aimed to provide the best resolution to our customer's concern. So, I'm happy to hear that solution provided by our team member has resolve your concern about applying a refund check to a credit memo in QuickBooks Online (QBO).

I would like to add this help article for reference if you wish to notify your customers of their invoices, payments, credits, and balances using QBO: Create and send customer statements in QuickBooks Online.

If you have further questions or concerns about your applying refunds, managing your invoices, or anything within the program, we're always here to help. Have a good one.