Hello,

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

I am very lost.

Hi @jesusrendon,

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.

This worked for me.....

https://fitsmallbusiness.com/credit-card-refund-quickbooks-online/

This works if you do the refund in the same calendar year. For businesses that require deposits for events that are sometimes held a year or more later, this is not really helpful. For example, I had someone pay in full for a service that was to be provided. However, Covid happened and they had to cancel, so I issued a partial refund. The problem is that I already paid taxes on the amount I received, and then actually had to issue a refund for that taxed amount this year. If quickbooks added a refund option for product/services it would make things a lot better for those who are self-employed and tracking everything themselves. 

Thank you!!!!! It took me forever to figure this out!!

Hello,

I used the process posted to creat a credit memo and to refund it - which brings the account as paid in full and refunded in full.    My issue is it is a credit card charge back - by doing this process I end up with a zero balance on the customers account.   It should show that they owe the amount of the chargeback?

Any ideas?

Thank you,

RC

Hope you're doing well today, @RECaaj3. You can create a credit memo to record a chargeback transaction for your customer. 

Here's how: 

1. Click the +New at the top, then select Credit Card Credit under the Vendor column. 
2. Enter the vendor’s name under Payee. 
3. Select the credit card under Bank/Credit account. 
4. Under the Item details sections, enter the item, and the amount to be credited. 
5. Click Save and close. 

Then, create an invoice and link the credit memo you've created. Here's how

1. Click the + New menu, then select Invoice.
2. Enter the customer under the Customer drop-down menu.
3. Edit the Invoice date to when you received the repayment.
4. Type in the same product or service found on your original sales receipt under the Product/Service drop-down menu.
5. Put in the correct amount as well under the Amount column, then click Save.

You can also check out this article to learn more about recording a vendor refund in QuickBooks. 

For future reference, Follow this article in case you need some easy steps in receiving invoice payments in QuickBooks Online. 

Let me know if there’s anything else you need. We're always around here to help in any way we can.  

Hi, thank you for explaining that, but I have 2 refunds from the same vendor twice in two weeks, and every time I try to do the second credit it appears the first credit. I added a second line and put there the amount and all categories for second refund, but is no matching my refund on my card, please help me! 

Thanks for joining the thread, @Dulce17.

I'd like to assist you and ensure that the vendor credit appears in QuickBooks Online.

We'll try to resolve the issue by performing the troubleshooting method and clearing the cache. So we can see if there's trouble running on the browser that you're currently using.

Follow these steps below:

1. Restart your browser.
2. Clear cache and cookies on your browser history.
3. Use a private browser like Microsoft Edge, Chrome, or Firefox. Refer to these shortcut keys to open a private browser:

• Google Chrome: press Ctrl + Shift + N

• Mozilla Firefox and Microsoft Edge: press Ctrl + Shift + P

• Safari: press Command + Shift + N

These will help your browser to perform seamlessly.

If everything is fine, I've got you this article for more information about the refund process to a different scenario: How do I handle supplier credits and refunds in QuickBooks Online.

QuickBooks provides you with access to every vendor's records, allowing you to edit and view the status of their transactions. Want to manage your vendors transactions? Grab this article for your guide: View vendor transactions.

Additionally, you can also run a Transaction List by Date report to get all money paid to a vendor for the year. Hop in this link for more ideas how to do it: Run report with vendor totals.

I'll lend my ears if you have other concerns regarding your vendor credit  and other entries in QuickBooks Online. I'll make sure to work something out for you. 

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where is this mythical "plus button in the top right" on quickbooks online?

Hello there, alinhos.

I'll ensure you'll get back to work by sharing some information regarding the + New icon in QuickBooks and providing you with how we can find it.

In QuickBooks Online (QBO), we can locate the +New icon at the top-left corner of your main menu. Please refer to the screenshot below:

However, if the option is unavailable on your end, I'd recommend clearing your browser's cache and cookies or using a different supported browser.

Please know that you can always get back to me if you have other questions about QuickBooks. I'm always here to help. Take care.

thanks!

I'm having what I think is a similar problem:
A vendor improperly charged our credit card for sales tax, and some weeks later refunded that to the card. The credit card company applied that to the next month's balance, and the reduced amount was paid by our bank.

I think I followed the steps above for QBDesktop, but what I am left with in QB in the Pay Bills screen is an unpaid bill for the amount of the refund. When I select it and click on GoTo Bill, I am shown a bill for the original full amount, which does not indicate any payments or credits against it. 

Since then, a new credit card statement has come in, which also has 'payments', one for a return of merchandise, from a different vendor than the sales tax refund, and one for redemption of points.

I cannot figure out how to enter these things and get the statement reconciled.

Any help with this situation is appreciated.

I understand the importance of accurately recording refunds and managing your records, TaumFAdmin. Allow me to provide you with steps to get this resolved.

To start with, may I know which payment method you used to pay your vendor? If you paid using a credit card, I suggest following the steps below to record the refund.

Here's how:

1. Go to the Banking menu, then click Enter Credit Card Charges.
2. Select the credit card account from the Credit Card dropdown.
3. Hit the Refund/Credit radio button.
4. Enter the necessary details.
5. If you returned Items, select the Item tab and enter the information needed.
6. If the refund does not have Items, select the Expenses tab, select the appropriate Accounts, and enter the Amount.
7. Select Save & Close, once done.

However, if you're not using a credit card to pay your vendor, please follow these steps:

First, you'll need to record a deposit for the vendor check. Here's how:

1. Go to the Banking menu, then click Make Deposits.
2. If the Payments to Deposit window appears, select OK.
3. From the Make Deposits window, click the Received from and choose a vendor.
4. Select the appropriate Accounts Payable account in the From Account dropdown.
5. Enter necessary details.
6. Once done, select Save & Close.

Second, record a bill credit for the returned item:

1. Go to the Vendors menu, then select Enter Bills.
2. Hit the Credit radio button to account for the return of goods.
3. Choose the Vendor name and select the Items Tab.
4. Enter the returned items with the same amounts as the refund check.
5. Once finished, click Save & Close.

Next, link the deposit to the Bill Credit by following these steps:

1. Go to the Vendors menu and click on 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 hit Done.
4. Select Pay Selected Bills, then select Done.

In order to provide you with enhanced support regarding your redemption points, we would appreciate any additional information you can provide.

Furthermore, you can refer to this article if you need help in the reconciliation process using QBDT: Reconcile an account in QuickBooks Desktop.

Let us know if you have other concerns about printing your financial recording vendor refunds in QBDT. We're here to help you in any way we can.

Good evening, and thanks for your patience; I've had a lot of things to attend to before I could get back to this.

This is all about refunds to a credit card from vendors, as well as credits provided by redemption of points.

On 11 September I had a cc balance of $616.60. On 25 September a vendor refunded $63.65 to my credit card.

I entered the credit as described above, as of 25 September. The expense account shows that balance reduced by $63.65. 4 October $552.95 was taken from my bank account as payment. 
On 10 October, my statement shows a previous balance of $616.60, a credit of $63.65 on 25 September, and the 4 October payment.

But when I open Pay Bills, I see two bills from the credit card company, one for the new balance and one of $63.65. When I select that one and click on Go To Bill, I see the original bill for $616.60, with no indication of the $63.65 credit being applied.

I do not understand what I've done wrong, and on the next bill I have a refund from a vendor for returned goods and a credit for points redeemed.

Any light that can be shed on this is appreciated.

I'm here to help you record a refund you've received and the payment you made to your credit card (CC) provider in QuickBooks Desktop (QBDT), Taum.

To clarify, there's no need to use the Pay Bills option since the bill is already paid. We can utilize the Enter Credit Card Charges feature and enter the refund from the CC institution as a Refund/Credit instead of a Purchase/Charge. It ensures the transaction will not appear as a charge or expense to your CC.

With that in mind, let's double-check if the CC refund was accurately documented on the platform. Here's how:

1. Go to the Banking menu and select Enter Credit Card Charges.
2. Click the Find button, and fill in the refund ($63.65) information you've previously saved. Then, hit Find.
3. Tick the Refund/Credit option and double-check everything.
4. Select Save & Close.
   

On the other hand, you can enter the payment to the CC by using the Write Checks function:

1. From the Banking menu, choose Write Checks.
2. Select the Bank Account you've used to pay the credit card balance.
3. In the Expenses tab, choose the credit card in the Account dropdown. Then, enter the Amount paid (credit card balance).
4. Once done, hit Save & Close.
   

    

For more information about handling CC expenses and payments, kindly check this link: Set up, use, and pay credit card accounts.

Additionally, once you're ready to reconcile your account in the software, you can use this article to guide you through the process: Reconcile an account in QuickBooks Desktop.

If you have more concerns about credit card refunds and payments, click the Reply button. We're always here to assist you.

Thanks for all your help.

I'm using QB Desktop.

The original bill for $616.60, as of 11 September, was produced from the reconciliation of the prior month. When the cc company makes its withdrawal, I can then pay the bill by writing a check on the cash account.

I entered the credit for $63.65 on 25 September (as shown on the October statement) as described before, using the credit card account, the vendor who refunded the money, and the expense account that was charged for this purchase. The vendor and that expense account properly show the credit, but what has not happened is recording the credit as a 'payment' against the bill. When the cc company withdrew $552.95 on 4 October, this left $63.65 as unpaid. The cash account correctly shows this.

The questions are, how do I apply this credit to the $616.60 bill, and going forward how do I enter a refund from a vendor for returned items, and how do I enter a credit from the redemption of points?

In general, these things happen after a new balance shows on a statement, but before the automatic payment is made. In some cases, such as points redemption, I don't find out about it until I see the next statement.

Thank you for elaborating the transactions and amounts involved, Taum. Let's work together to address your questions separately to ensure an accurate record in the program.

First, you can link the credit you've entered ($63.65) to the open bill ($616.60) to apply it as a payment. Here's how to do that:

1. Go to the Vendors at the top menu and select Pay Bills.
2. On the Select Bills To Be Paid section, tick the checkbox of the bill ($616.60).
3. Determine the credit.
4. Click Pay Selected Bills.

To check if the credit was deducted from the bill, navigate to the Vendor Center and find your vendor's name. In the Vendor Information, select the Transactions tab and filter to show Bills for easier tracking.

For your second and third questions, proceed to Scenario 2 to record a refund check for returned inventory items and register the redemption of points by following Scenario 3. Refer to this article for the complete instructions: Record a vendor refund in QuickBooks Desktop.

Afterward, click Run Reports on the lower part of the Vendor Information to View as a Report and review the entries made in the program.

Moreover, familiarize yourself with the vendor-related workflows for your guide: Accounts Payable workflows in QuickBooks Desktop.

Furthermore, use this reference to personalize reports according to your need: Customize reports in QuickBooks Desktop.

Effective vendor management establishes clear communication while monitoring the payables to ensure all the payments are made well helps build good relationships with vendors. Add a response below for more questions about documenting vendor credits and refunds. We're here to help you.