Refundable deposit to the power company

SarahannC

Thanks for replying. I don't think I was clear enough. We issued a check to the power company for the deposit for $296.00 and they used part of our deposit to pay the last invoice that we hadn't paid yet. They issued us a check in the amount of $228.27. The difference is the invoice that we didn't pay before the account was closed.

So I deposited the check in the bank and need to make the deposit in QB and issue a credit to our customer account. How do I pay the outstanding invoice on our payable report?

Thanks for the clarification, bookkeeper-2023. I'll route to the right path in handling this type of transaction.

After you receive the refund check worth $228.27 from the power company, we'll have to enter it as a bank deposit in QuickBooks Desktop. Let's make sure that it's affecting the category you use for the prepayments to offset the amount. I'll show you how:

1. Head to the Banking menu.
2. Choose Make Deposits, then close the Payments to Deposit window.
3. Set the correct bank account and date.
4. Select the vendor from the Received From column.
5. Enter the appropriate category and amount
6. Add a memo as needed and hit Save & Close.

After that, enter a credit to represent the deduction of the initial payment. Next, link it to the outstanding invoice using the Pay Bills functionality. This way, we can close them and zero out the balance in your payable report. Feel free to follow the steps below:

1. From the Homepage, choose Enter Bills.
2. Tick the Credit radio button.
3. Select a vendor and enter the account/amount.
4. Click Save and Close, then head to the Vendors menu.
5. Choose Pay Bills and click Set Credits.
6. Apply the credits you created earlier.
7. Tap Pay Selected Bills, then Done.

For more tips in recoding reimbursements from suppliers, I recommend reading this article: Record a vendor refund in QuickBooks Desktop.

Tag me below if you need a helping hand in logging your sales and expenses. I'll be more than happy to assist you again, bookkeeper-2023. I wish you a wonderful week ahead!

@bookkeeper-2023 

It depends on how the refundable deposit was recorded when it was made.  It should have been recorded as an asset, but if you're asking this question, you must not see that listed on your balance sheet or vendor account.  If you can't find it, it was most likely recorded as an expense with the first bill.  If that's the case, you can create a journal entry:

Yes. I have the answer I need. Thank you for your help.