Vendor Credit

I've got your back, @Mfong12.

You can enter a vendor credit for the refunded amount ($3000) and unlink the payment to the bill to reflect the original amount ($6000). Let me guide you through the process.

Here's how to enter a vendor credit:

1. In your QuickBooks Online (QBO), click the + New button and select Vendor credit.
2. Select the vendor from the drop-down.
3. Choose the Category or Item details you purchase from your vendor.
4. Then, enter the refunded amount ($3000).
5. Click Save and close.

Once done, you'll have to unlink the payment from the bill to show the original amount ($6000). Here's how:

1. Find and open the created bill.
2. Under the Mark as paid button, click the 1 payment made ($3000) link. Then, select the date link.
3. On the Bill Payment page, click More at the bottom and choose Delete.
4. Click Yes to confirm.

After deleting it, go back to the bill and review the original amount. It should show the original amount ($6000).

You might also want to review all your created vendor transactions. You can run and customize some reports in QuickBooks Online.

Please know that I'm just a reply away if you need any further assistance managing your bills in QBO. Wishing you all the best.

Thank you for your response.  Very helpful. My next question is I have to deposit that check that I entered as a Vendor Credit.  How do I do that?  

Thanks again!

Also, the bank account that I deleted the payment from is now out of balance.  How do I fix that?

Thank you

Thank you for getting back here in the Community, @Mfong12. 

Allow me to share some steps to enter a vendor credit in QuickBooks Online (QBO). You can record a vendor credit and make sure it hits the expense account. Then, enter a bank deposit from the refund check you receive and link both transactions using Pay Bills. Let me guide you through the process.

To record vendor refund in QBO, you may follow these steps:

1. Press on the + New button at the left pane.
2. Select on Vendor credit.
3. In the Vendor drop-down, choose your vendor.
4. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service of the credit.
5. Hit on Save and close.

Then, record a bank deposit to the refund check.

1. Click the + New button and choose Bank Deposit.
2. Select the appropriate credit card account where you got the refund.
3. In the Add funds to this deposit section, fill out the following fields.
   • Received from: Select the vendor who gave you a refund.
   • Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
   • Payment method: Enter the method your vendor used to refund you.
   • Amount: Enter the amount of your refund.
4. Select Save and close.

Once done, you can now link the bank deposit to the vendor credit using Pay Bills. To ensure your vendor expenses are accurate.

1. Click the + New button, then select Pay Bills.
2. Choose the bank deposit you created. See the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
3. Hit Save and close.

For your reference, I'm also adding here some articles that you can visit about entering a vendor credit and applying them to your transactions:

• How you enter the credit depends on how you record your purchases
• Learn how vendor credits are applied 

You can add and match online bank transactions after downloading them. 

Let me know if there's anything else that you want us to help with your vendor transaction. As always, the Community is always here for further assistance.