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Level 4

Refund check from vendor

My general liability insurance company gave sent me a check for $13 a  refund due to some Covid stuff.  I deposited that check into my checking account and want to log it into Quickbooks for Mac 2020.  I don't need anything special such as it attached to any bill, I just want to log it and make sure that it doesn't count as income.


I went to Make Deposits and entered it as a deposit to my checking account and choose the expense account as the "General Liability Insurance" expense account that I put in my Chart of Accounts.

 

Am I done at this point?

 

I looked up some ways to do it and they all seem very complicated, such as continuing on to Enter Bill and Pay Bill.  I am not sure what that is about.  I tried doing it one way, but it then entered that $13 as a payment out of my checking account which is definitely wrong.

 

Do I have to do something else other than entering the deposit?

Solved
Best answer July 30, 2020

Best Answers
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QuickBooks Team

Refund check from vendor

You’re all set, @Electrician.

 

You can deposit the refund and no need to enter a Bill. Just ensure you entered a reason for the refund in the description field to track it easily when reconciling your accounts.

 

Once you’re ready to reconcile your account, you can check this article for the detailed steps: Reconcile bank and credit card accounts (Mac). This link provides complete information on how to accurately reconcile your account.

 

You can also check the QuickBooks Desktop for Mac user guide and learn some tricks about managing your software efficiently.

 

You're always welcome to post in the Community space whenever you have further questions with your account. I’ll be around ready to lend a helping hand.

View solution in original post

3 Comments
Highlighted
QuickBooks Team

Refund check from vendor

You’re all set, @Electrician.

 

You can deposit the refund and no need to enter a Bill. Just ensure you entered a reason for the refund in the description field to track it easily when reconciling your accounts.

 

Once you’re ready to reconcile your account, you can check this article for the detailed steps: Reconcile bank and credit card accounts (Mac). This link provides complete information on how to accurately reconcile your account.

 

You can also check the QuickBooks Desktop for Mac user guide and learn some tricks about managing your software efficiently.

 

You're always welcome to post in the Community space whenever you have further questions with your account. I’ll be around ready to lend a helping hand.

View solution in original post

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Level 4

Refund check from vendor

Thank you for the reply Jasro!  I have one more question.

 

I originally looked at this page, as you can see there are many different ways to enter the refund and all of them are long and complicated. https://quickbooks.intuit.com/learn-support/en-us/manage-vendors/record-a-vendor-refund-in-quickbook...

 

The one closest to what I am doing is "Scenario 3: The vendor sends a refund check that is not related to an existing bill".  But that has 3 different parts to it, and I only did the first part.  And you said only doing the first part is fine.  So I am just curious why all of those scenarios have so many other things to do when just entering the deposit is enough?

 

I ask because I am trying to learn the reasoning behind the actions to better understand the software and bookkeeping.  Thank you

 

 

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QuickBooks Team

Refund check from vendor

Hi there, Electrician.

 

I'll provide details on why there's still another step to follow after entering a deposit while recording a refund from a vendor.

 

Yes, you right entering the deposit is enough. As mentioned above, you can deposit the refund and no need to enter a Bill or Bill credit. Just assure you entered a reason for the refund in the description field to track it easily when reconciling your accounts.

 

However, there are additional steps after entering a deposit to make sure your QuickBooks account balance stays accurate. Then, to offset the amount of refund. That's the reason you'll need to record a Bill Credit and link the Deposit.

 

You can click this article to view the recommended solution on how to fix AR and AP balances on the cash basis Balance Sheet: Resolve AR and AP balances on the cash basis Balance Sheet.

 

Please also refer to this article to see steps on how to transfer available credits from one vendor to another through the use of a temporary clearing account: Transfer and apply credit from one vendor to another in QuickBooks Desktop.

 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

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