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Our vendor meant to charge us for a prepayment on an order but they accidentally charged our CC s a larger amount. They then refunded part of the amount to the same CC. They also generated an invoice for the full amount and a credit memo to the Invoice for an mistake they made. Normally for prepayment on a CC we enter it in CC payments to Accounts Payable and put in the Vendor name in Pay to the Order which then shows up as a negative amount in their account.
Here is the series of transactions:
How do we best account for them in QB. All the transactions were on the same CC. We use QB for MAC 2020 desktop.
Thanks!
The way I read this situation, is that the first charge you show should be 7K - true?
If so then you enter things the same way it happens in real life.
1. show the charge to the CC for the full amount, 7K
2. create a credit memo for the vendor in the amount of 2K as a refund to the CC
3. enter the bill (vendor invoice) for 7K
4. enter the $10 credit for the vendor and apply to the bill
5. apply the prepayment of 5K to the bill
6. pay the balance of 1,990
Hey @Rustler it's great to see you on here again. I hope you are well and safe.
Whoops, made an error in the explanation/steps! You are correct it should have been 7K for the first.
We had entered a a refund through the CC charges window for the 2K. We don't see any payment for the 5K in the system. Do we need a credit memo and a refund in the CC charge?
Without seeing the entries it is hard to say. I like to use enter bills and pay bills, that keeps everything associated in one place.
Thanks @Rustler for the follow-up reply. Yeah we like doing enter bills too. This one the supplier charged us a prepay before we got the bill but then sent the invoice/bill dated the same day as the prepayment. We entered the CC prepayment against AP in the CC making a negative balance on the vendor account then entered the bill then entered a CC refund/credit in the CC window to the A/P account. Not sure what to do to get this entered correctly.
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