Vendor Refund with Vendor Payment

Good morning, @LRhoades.

I can see how important it is for you to be able to track the refund and payment. I'll share a different approach for your scenario that shows the deposit and bill accordingly.

You'll need to create a bank deposit to cover the expense of $140.34 and receive an amount of $256.66. Therefore, the total should be $397.

First, go to the +New and select Bank deposit under Other. Enter a negative amount (-$140.34) so it deducts from the total amount ($397), resulting to ($256.66).

Second, navigate to the +New again to make a bill ($140.34) so we can apply the payment. Here's some snippets for your guide:

You can browse through this article for more in-depth information: Enter vendor credits and refunds in QuickBooks Online (QBO). From there, you'll learn about the various methods to track these types of transactions.

Reach out to me again if you have additional questions about applying for vendor credits or refunds. I'd be delighted to lend a helping hand. Have a good one. 

Will this work if the deposit is already sitting under transactions for review? Or do I delete this and create the bank deposit?

You don't need to delete that, LRhoades.

Since the $256.66 refund is already downloaded in the bank feeds, we can go ahead and create a bank deposit by following the steps provided by my colleague, JamaicaA. Then, match it with the imported entry. This links them together so you won't have duplicates. Here's how to do it:

1. Go to Bookkeeping, then Transactions.
2. Select Bank transactions, then click appropriate account.
3. Head to the For review tab, then locate the refund.
4. Click the Match option from the Action column. 

Take a look at my screenshot below:

Another option is to directly include the downloaded reimbursement in your records by clicking the Add button. This method provides a more straightforward approach that doesn't require entering and matching a bank deposit, while still accurately representing the flow of funds.

Afterward, let's create or apply the payment to close the open bills. Additionally, I'm adding this article to learn how to track all the money you've paid to a supplier for a particular period: Run a report with vendor totals.

Consider me your ongoing support. Whenever you need assistance with managing expenses, sales, or any other business tasks, just drop the details below. I'll be quick to respond and help you out.