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csoffice
Level 3

Vendor is issuing a check to replace existing credit

We overpaid one of our vendors and had a credit for $200 on our account which was entered into QuickBooks.

It is a vendor we don't use very often and so after a couple of months, we decided to request a refund check instead of the credit.

When recording the deposit, how to I link it to the existing credit?

Solved
Best answer October 22, 2021

Best Answers
MadelynC
Moderator

Vendor is issuing a check to replace existing credit

I’m here to help you link the deposit to the existing credit, @csoffice.


To link the deposit to the existing credit, you’ll want to use the Pay Bills feature in QuickBooks Desktop (QBDT). Before that, make sure to select the appropriate Accounts Payable account when recording a deposit of the vendor check.


Here’s how:

 

  1. Select the Banking menu, then select Make Deposits.
  2. If the Payments to Deposit window appears, select OK.
  3. Go to the Make Deposits window.
  4. Select the Received from drop-down and choose the vendor who sent you the refund.
  5. Select the appropriate Accounts Payable account in the From Account drop-down.
  6. Enter the actual amount of the vendor check.
  7. You can enter a memo, check number, payment method, and class.
  8. Press Save & Close.


Once done, follow the steps outlined below to link the deposit to the credit:

 

  1. From the Vendors menu, select Pay Bills.
  2. Check the deposit that matches the vendor check amount.
  3. Click Set Credits and apply the existing credit, then hit Done.
  4. Select Pay Selected Bills, then click Done.


You can use this information to learn more about recording refunds you received from a vendor in QBDT.


Also, here’s a reference to ensure records are matched to your bank and credit card statements: Reconcile an account in QuickBooks.


Don’t hesitate to tap the Reply button below if you have other questions or concerns besides linking transactions. I’ll be here to help. Have a great day and always take care!

View solution in original post

2 Comments 2
Rustler
Level 15

Vendor is issuing a check to replace existing credit

When you have a supplier credit and you get a refund, you deposit the refund and use accounts payable as the source account for the deposit

then you go to pay bills, select the bill the deposit caused and apply the supplier credit, save

MadelynC
Moderator

Vendor is issuing a check to replace existing credit

I’m here to help you link the deposit to the existing credit, @csoffice.


To link the deposit to the existing credit, you’ll want to use the Pay Bills feature in QuickBooks Desktop (QBDT). Before that, make sure to select the appropriate Accounts Payable account when recording a deposit of the vendor check.


Here’s how:

 

  1. Select the Banking menu, then select Make Deposits.
  2. If the Payments to Deposit window appears, select OK.
  3. Go to the Make Deposits window.
  4. Select the Received from drop-down and choose the vendor who sent you the refund.
  5. Select the appropriate Accounts Payable account in the From Account drop-down.
  6. Enter the actual amount of the vendor check.
  7. You can enter a memo, check number, payment method, and class.
  8. Press Save & Close.


Once done, follow the steps outlined below to link the deposit to the credit:

 

  1. From the Vendors menu, select Pay Bills.
  2. Check the deposit that matches the vendor check amount.
  3. Click Set Credits and apply the existing credit, then hit Done.
  4. Select Pay Selected Bills, then click Done.


You can use this information to learn more about recording refunds you received from a vendor in QBDT.


Also, here’s a reference to ensure records are matched to your bank and credit card statements: Reconcile an account in QuickBooks.


Don’t hesitate to tap the Reply button below if you have other questions or concerns besides linking transactions. I’ll be here to help. Have a great day and always take care!

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