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How can I process a refund check from a vendor when the refund is deposited along with other checks?

I've followed a few instructions to process a refund from a vendor, and am still a bit stuck about what to do about the actual refund deposit transaction that has downloaded from the bank. Sure I am misunderstanding something and hoping someone might be able to help.

I have received a refund from a vendor that we overpaid, in the form of a check which we have deposited along with a few other checks. 

In QBO - I've created a Vendor credit for the refund amount, then created a deposit for that vendor set to accounts payable, and then used either Check/Expense/Pay Bills, to link the vendor credit to the deposit. That gives a zero balance transaction in the vendor expense account. But what would I do with my actual deposit transaction for the grouped checks including the actual vendor refund that has downloaded from our bank? Matches for the other checks in the bank deposit are coming up, but nothing comes up for the refund check.....

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Best answer 10-15-2018

Accepted Solutions
QuickBooks Team

Hello insurance110, I can help you make sure that you pro...

Hello insurance110,

I can help you make sure that you process that refund check from the vendor.

We can easily resolve this because you are actually on the right track! You just need to add a few more steps to what you are already did in QuickBooks Online.

When you create the deposit, instead of creating a deposit just for that vendor, you can add all the details for your actual deposit transaction. You just need to make sure that you enter the correct information in each column (RECEIVED FROM, ACCOUNT, AMOUNT, etc.) for each line item. I've attached a screenshot for your reference.

This allows you to record the actual deposit transaction in QuickBooks Online, so that you can match it to your downloaded transaction. Not only that, but you can still link the deposit to the vendor credit to zero out the balance of this vendor.

That's it! You will be all set after recording the deposit.

I'm happy that I was able to help you out. You are always welcome to reach out to me again if you have any other questions.

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QuickBooks Team

Hello insurance110, I can help you make sure that you pro...

Hello insurance110,

I can help you make sure that you process that refund check from the vendor.

We can easily resolve this because you are actually on the right track! You just need to add a few more steps to what you are already did in QuickBooks Online.

When you create the deposit, instead of creating a deposit just for that vendor, you can add all the details for your actual deposit transaction. You just need to make sure that you enter the correct information in each column (RECEIVED FROM, ACCOUNT, AMOUNT, etc.) for each line item. I've attached a screenshot for your reference.

This allows you to record the actual deposit transaction in QuickBooks Online, so that you can match it to your downloaded transaction. Not only that, but you can still link the deposit to the vendor credit to zero out the balance of this vendor.

That's it! You will be all set after recording the deposit.

I'm happy that I was able to help you out. You are always welcome to reach out to me again if you have any other questions.

Not applicable

Hi IntuitAldrin, Thanks a million for this quick and hel...

Hi IntuitAldrin,

Thanks a million for this quick and helpful response! This makes a lot more sense. I followed your directions and input all of the check details for the bulk deposit. The refund check deposit, I was then able to link with the vendor credit - I used "Expense" under Vendors in the + menu, to do that. And the downloaded deposit transaction from the bank matched with the set of deposits that I entered. Really appreciate your help!
Community Contributor **

Re: Hello insurance110, I can help you make sure that you pro...

i do not see a screen shot................

Moderator

Re: Hello insurance110, I can help you make sure that you pro...

Hello @insurance110 and @CarynG.

 

I appreciate your response. I'm glad the steps provided by my colleague @AldrinS worked for you @insurance110. Please let us know if you need anything else.

 

I can help provide you with some screenshots @CarynG. Here's how to create the deposit transaction in QBO:

  1. Go to the (+) icon and select Bank Deposit.
  2. Make sure to enter the correct account in the Account field, then scroll down to Add funds to this deposit.
  3. Enter the details in each column for Received From. Account, Amount, etc. for each line item.
  4. Click Save and close when done.

Please visit us again if you have additional questions about processing refund check and creating a deposit for a vendor. I'm here to help however I can. Have a good one.

Community Contributor **

Re: Hello insurance110, I can help you make sure that you pro...

thanks that part worked for me but the credit amount is still showing for the vendor so something is off.................

QuickBooks Team

Re: Hello insurance110, I can help you make sure that you pro...

Hi CarynG, 


Thanks for the quick response! It's good you're able to follow the steps provided by my colleagues @AldrinS and @LilyC

 

Allow me to add up some steps so the vendor's credit will be zeroed out!

 

When you make a deposit, make sure to select Accounts Payable in the Account field. Then, create a Check, Expense or Pay Bills to link the vendor credit to the deposit. 

 

To create a bank deposit with the Accounts Payable account:

  1. Go to the Plus icon, then Bank Deposit.
  2. Choose the Bank Account to deposit the fund.
  3. Scroll down to the Add funds to this deposit section.
  4. Select the name of the vendor in the Received From column.
  5. Pick Accounts Payable in the Account column.
  6. Enter other details, such as Amount, Description, Payment Method, and etc.
  7. Click Save and close.

To link the deposit to the vendor credit:

  1. Go to the Plus icon, select Expense, Check, or Pay Bills.
  2. In the Choose a Payee field, pick the vendor's name.
  3. An Add to Check/expense section will come out in the right side of the screen (see screenshot below).
  4. Choose Add in both Deposit and Vendor Credit.
  5. Click Save and Close

These steps should close out the credit in your vendor's balance. 

 

Let me know how things go, CarynG. I'm just a post away!

 

Experienced Member

Re: Hello insurance110, I can help you make sure that you pro...

How does this work in QB Desktop? I've followed the steps below but cannot 'link the deposit to the bill credit'.

 

Scenario 3: The vendor sends a refund check that is not related to an existing bill

Examples include rebates, reward incentives, refunds, reimbursements, or checks issued by a vendor to cash out an existing credit.

  1. Record a Deposit of the vendor check:
    1. From the Banking menu, click Make Deposits.
    2. If the Payments to Deposit window appears, click OK.
    3. In the Make Deposits window, click the Received from drop-down and choose the vendor who sent you the refund.
    4. In the From Account drop-down, select the appropriate Accounts Payableaccount.
    5. In the Amount column, enter the actual amount of the Vendor check.
    6. Enter the remaining information in the Deposit.
    7. Click Save & Close.
  2. Record a Bill Credit for the amount of the Vendor Check:
    1. From the Vendors menu, select Enter Bills.
    2. Select the Credit radio button to account for the return of goods.
    3. Enter the Vendor name.
    4. Click the Expenses Tab and enter the Accounts you would normally use for refunds.
      Note: If you are not sure which account account to select, Intuit recommends contacting your accounting professional.
    5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated.)
    6. Click Save & Close.
  3. Link the Deposit to the Bill 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 Bill Credit you created earlier then click Done.
    4. Click Pay Selected Bills > Done.
QuickBooks Team

Re: Hello insurance110, I can help you make sure that you pro...

Hello there, @autoacc.

 

Thanks for adding your concern on this thread. I can help you link the Deposit to the Bill Credit.

 

Here are some screenshots that will walk you through the detailed steps. Let's start with th transactions needed to successfully link the Deposit to the Bill Credit.

 

Sample Check.

Record a Deposit of the vendor check.

Record a Bill Credit for the amount of the Vendor Check.

Link the Deposit to the Bill Credit.

 

This information should help you link the Deposit to the Bill Credit. Keep me posted on this, and I'll be right here if you need anything else. Have a great rest of your day!

SMG
Established Member

Re: Hello insurance110, I can help you make sure that you pro...

this is not helping me at all. I have created a vendor credit and a vendor deposit. Everything is linked and showing appropriately except my downloaded check is sitting in the pre-register for the bank and there is still nothing to link it to.  Can anyone help me?

QuickBooks Team

Re: Hello insurance110, I can help you make sure that you pro...

Hi there, SMG.

 

I can help you link downloaded check with your existing transaction in QuickBooks.

 

You can manually match your downloaded transactions and make sure to select the Match to Existing Transaction and choose the transaction you want to match with the deposit.

 

Here's how:

  1. Go to Banking.
  2. Choose Bank Feeds.
  3. Click Bank Feeds Center.
  4. Choose a bank account.
  5. Click the Transaction List button.
  6. From the Action drop down arrow, choose Match to Existing Transaction.
  7. Choose the transaction you'll want to match then click Confirm Match.
  8. Click Yes.

I've attached some screenshots below so you can have a better view.

AA.PNG AB.PNG AC.PNG

To learn more about matching transactions in QuickBooks, you can check out this article: Add and match Bank Feed transactions.

 

That's it. Should you need more help with matching downloaded transactions in QuickBooks, just let me know. I'm always here to help you out.

SMG
Established Member

Re: Hello insurance110, I can help you make sure that you pro...

I decided to delete the vendor credit. I  created a deposit from the vendor on the "cost of goods sold" account and matched it to the check. The vendor record doesn’t show the transaction for some reason but the check is in the check register and it has the deposit slip as a match. I put a note on the original purchase invoice indicating there was a refund applied and noted the date so I could find it if need be and the vendor shows a 0 balance. 

 
I might try again next time I have one, but this seems too complicated.
 
Thank you for trying to help.
Frequent Explorer *

Re: Hello insurance110, I can help you make sure that you pro...

I found a better answer to this same question after searching off and on for months
https://quickbooks.intuit.com/community/Payments/How-to-enter-a-refund-charge-on-credit-card-for-ret...

Experienced Member

Re: Hello insurance110, I can help you make sure that you pro...

Hello, these steps worked for me to tie the Deposit to the Vendor Credit. But now, the Vendor Detail shows a credit twice (one for the deposit and one for the vendor credit).

 

Is there any way to fix this?

{screenshot attached}

 

 

QuickBooks Team

Re: Hello insurance110, I can help you make sure that you pro...

Hello there, amd18.

 

Let me bring clarifications with your concern about the process of vendor refund in QuickBooks Online (QBO).

 

No need to worry about the two credit transactions reflecting on your Vendor Transaction List for it is normal. As long as you get a zero balance, you're doing it right.

 

z.PNG

 

You can run the Transaction List by Vendor report to keep track of the transactions.

 

Here's how:

  1. Go to Reports. from the left menu.
  2. Select the Transaction List by Vendor.
  3. You can also click the Customize button to filter the information.
  4. Click Run report.

Should you need reference on how to customize reports in QBO, you can check out this article: https://quickbooks.intuit.com/tutorials/lessons/custom-reports/

 

I want to make sure this gets resolved. If you have other questions just fill me in and I'll be around to help.