Business purchase with business card under expense. Returned item. Transaction back on the card which reflected a "deposit" on the bank ledger. How to track on QB?

We'll need to create a vendor credit to record the returned item, theta-innovation.

Afterward, you'll have to create a bank deposit. This is to record the transactions that reflected on your bank ledger. I'll show you how:

Please follow these steps to record a vendor credit:

1. Click the Create (+) icon, and then select Vendor Credit.
2. Select a Vendor name.
3. In the Item details section, select the product you've returned.
4. Enter the QTY, RATE, and AMOUNT.
5. Click Save and close.

Then, here's how to create a bank deposit:

1. From the Create (+) icon, select Bank Deposit.
2. Select the account you've used for the purchased.
3. Select your business card on the RECEIVED FROM field, under the Add funds to this deposit section.
4. Select an accounts payable in the ACCOUNT field.
5. Enter the AMOUNT of the item.
6. Click Save and close.

Afterward, you'll need to link the vendor credit and the deposit. You can do this by paying a bill. Here's how:

1. Go to the Create (+) icon, and then select Pay Bills.
2. Select your business account.
3. Select a PAYEE. (the CREDIT APPLIED will auto populate)
4. Make sure that under the PAYMENT column is zero.
5. Click Save and close.

There you have it. I'll be right here if you still need my help.

Hello,

If in the credit card register in QB it shows as a deposit, then select the same business expense you originally used when you charged the credit card for the original expense.  That will offset the same expense account.

Example.

Original Expense

11/25/2019

$100.00 charged to business credit card

Expense Account: Business Supplies

Return

12/2/2019

$100.00 deposited back on business credit card

Expense Account: Business Supplies

How do I handle this same situation if Im using a version of quickbooks(Simple Start) that doesn't support vendor credit?

Nice to have you in the community space, chris_the_wrench. 

Since vendor credit isn't available for QuickBooks Online (QBO) Simple Start subscription, we can create a Bank deposit feature to record the credit. Let me walk you through the steps.

1. Click + New, then choose Bank Deposits.
2. In the Received From column, select the vendor who issued the check.

3. In the Account column, select the Accounts Payable account.

4. Click Save and Close.

I'm adding this article for more guidance on this process: Enter a refund from a vendor.

If you wish to have this feature, I recommend upgrading your account. Here’s how:

1. Go to the Gear icon.
2. Select Account and settings.
3. Click the Billing & Subscription menu.
4. In the QuickBooks Online section, select Upgrade your plan
5. Select Choose plan.
6. Then click Get started.

You can also utilize this article for more details about the process: Upgrade your QuickBooks Online subscription.

On the other hand, you can visit these links to learn more about what you can and can't perform with this plan.

• QuickBooks Online Simple Start
• QuickBooks Plan and Pricing

Let me know if you have additional questions or concerns. I'll be here to help you every step of the way. You can always reach out to us here in the Community anytime you need assistance. Take care and have a good one! 

Ok, So I did the bank deposit thing you said. But now my Accounts Payable amount is growing, but I don't owe the vendor this money. How does this get adjusted??

Hello, chris_the_wrench.

I'm here to help you with fixing your accounts payable balance in QuickBooks Online.

You can create a journal entry to write off the vendor balance. But, before proceeding, I suggest consulting your accountant for further guidance. This way, we can ensure your books are accurate in QuickBooks Online (QBO).

Here's how:

1. Select + New and choose Journal entry.
2. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
3. On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
4. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
5. Enter information in the memo section to know why you made the journal entry.
6. Select Save and new or Save and close.

Please let me know if you have any questions. I'll be here to lend a hand.