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Join nowI have the following situation:
Help! Please!
Glad you made it here, markatmakinity.
I've got you an article on supplier credits and refunds that will help you with how to handle this in QBO. Please check this out: How do I handle supplier credits and refunds?
You can also use this link if you wish to apply for the credit as payment to future bills: How to enter outstanding balances for customers and vendors
For future reference, check out how to reconcile an account in QBO.
Tag me in a comment below if you need more help.
Not helpful. Please read my entire situation and what I want to do. I am already fully aware of the information you sent to me.
Hello, markatmakinity.
Thank you for getting back to us. You can record your supplier refund by creating a deposit transaction under accounts payable. Then you can link the bill and deposit by applying vendor credits. Let me show you the steps.
Once done, enter the Supplier Refund in the Deposits screen:
Then, Link the Supplier Refund Deposit to the Supplier Credit.
For more information about the refund process to a different scenario, you can refer to this article: How do I handle supplier credits and refunds?
You can also create a journal entry to offset the supplier credits. Before doing this, I recommend consulting an accountant to guide you in offsetting the amount and to assist you with the correct posting account to use. Then, you can refer to this article to see the detailed steps on how to perform JE: Create a journal entry in QuickBooks Online.
Also, about write off bad debt in QuickBooks, you can check out this article: Write off bad debt in QuickBooks Online.
Let me know how it goes. I wanted to ensure you get all the help you need. Take care and have a good one.
Hello -
I have attached a screenshot of my current situation. I have paid a supplier for two invoices ($512K and $9600) for a total of $521,600. We overpaid the supplier by $1,033.19 to ensure sufficient funds. The deal was cancelled in the end and so the supplier returned us two payments ($251265.05 and $271232.00) and this resulted in a overpayment to us of $893.05.
I created a journal to move our overpayment of $1,033.19 to bad debt. (Not sure if this was best way to handle) Then, I issued a supplier credit for $521,600, created the two bank deposits and the result is seen in Bill Payment for $893.05
Summary, we overpaid by $1,033.19 above the total of $521,600 and the supplier returned to us $893.05 over the supplier credit of $521,600; netted, we have overpaid the supplier by $140.14 that I would like to write off as Bad Debt.
I need someone to help me, step by step, with simple instructions to account for the situation and write off the $140.
Thanks for following up with the Community, markatmakinity. I appreciate your screenshot. That helps me better understand what's going on.
For step by step assistance with your journal entries and getting everything recorded properly, I'd recommend working with an accounting professional.
If you're in need of one, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
Here's how it's used:
Once you've found an accounting professional, they can be contacted through their Send a message form:
You'll additionally be able to find many useful resources in our help article archives.
I'll be here to help if there's any questions. Enjoy the rest of your day!
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