Refund a Vendor Credit

Hi there, LifesKitchen.

Vendor credit is a credit that you receive from your vendor. It is equivalent to a cash amount that the vendor owes you. We also use this credit to pay for any future bills. 

With this being said, a refund check must be issued from the vendor. You can reach out to them to see if the credit can be converted to cash or anything valuable.

If yes, here are the steps to record a refund check that is not related to an existing bill. Examples are rebates, reward incentives, refunds, reimbursements, or checks issued by a vendor to cash out an existing credit:

1. Record a Deposit of the vendor check:
   1. Go to the Banking menu, then select Make Deposits.
   2. If the Payments to Deposit window appears, select OK.
   3. In the Make Deposits window, select the Received from drop-down and choose the vendor who sent you the refund.
   4. In the From Account drop-down, select the appropriate Accounts Payable account.
   5. In the Amount column, enter the actual amount of the Vendor check.
   6. Enter the remaining information in the Deposit.
   7. Select Save & Close.
2. Record a Bill Credit for the amount of the Vendor Check:
   1. Go to the Vendors menu, then select Enter Bills.
   2. Select the Credit radio button to account for the return of goods.
   3. Enter the Vendor name.
   4. Select the Expenses tab and enter the Accounts you would normally use for refunds.
   5. In the Amount column, enter the appropriate amount of the check.
   6. Select Save & Close.
3. Link the Deposit to the Bill Credit:
   1. Go to the Vendors menu, then select Pay Bills.
   2. Check the Deposit that matches the Vendor check amount.
   3. Select Set Credits and apply the Bill Credit you created earlier then select Done.
   4. Select Pay Selected Bills, then select Done.

More ways to record vendor credits are found in this reference: Record a vendor refund in QuickBooks Desktop

If not, you can check with your accountant to see if it's okay to delete or void this vendor credit from your company file since it has been there for a long time. Deleting it would probably change your financial reports, so it is best to know their opinion too. 

Then, here's how to delete or void:

1. Open the Vendor credit.
2. Click on the drop-down option below Delete.
3. Choose either Delete or Void. 

Of course, you are welcome to ask any questions about QuickBooks. We are here for you.