Question

Enter Credit Card Overpayment Refund

Forum|Forum|4 years ago
January 26, 2022
3 replies
36 views

Our credit card company issued us a check for an overpayment. How do we properly record this credit to reflect properly on the credit card statement/register and also as a check to deposit in our checking account?

We have already created a vendor credit for the amount of the credit. The Vendor = the credit card vendor and the Expense Account = the Credit Card Payable account. I believe this is correct so far but don't know how to proceed beyond this to ensure everything is recorded and linked correctly and shows as a checking account deposit (check has already been physically deposited).

Thank you!

QuickBooks Desktop

Rose-A

Level 10

I'd be pleased to help you with entering credit card overpayment refund in QuickBooks Desktop, ChiColorLabel.

You can use the Enter Credit Credit Charges option to record and reflect the credit properly on QuickBooks Desktop. Here's how:

Click the Banking menu, then select Enter Credit Card Charges.
From the Credit Card drop-down, select the credit card account.
Select the Refund/Credit radio button.
Choose the appropriate Vendor name and enter the Date, Ref No, and Amount.
Enter an appropriate memo to describe the transaction.
If you returned Items, select the Item tab and enter the Items and Amounts from the refund. If the refund does not have Items, select the Expenses tab, select the appropriate Accounts and enter the Amount.
Hit Save & Close.

For your reference, check out this article: Record a vendor refund in QuickBooks Desktop. On the same link, you'll find scenarios about how to handle vendor refunds as well as steps to record them.

Should you need additional assistance, please let me know. I'd be more than willing to lend you a hand.

C

ChiColorLabelAuthor

Thank you for your reply. However, this doesn't fully answer the question.

This credit was sent to us as a check, not applied on our account. How do we process this credit when it is a check sent to us by the credit card company and we want to deposit the check in our checking account?

Rainflurry

Level 11

@ChiColorLabel

You can create a bank deposit (not a vendor credit) and choose the credit card payable account under 'Account' in the Make Deposits window. This will increase the amount on your credit card liability account (since you overpaid the liability) and you should be good to go.

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