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HollyJoy
Level 3

How can we record a deposit made by a contractor to reduce his payments to under $600.00?

Through a fluke, the pianist at our church was paid just over $600.00. He repaid us the $50.00 so he doesn't need a 1099. We deposited that amount in Dec, 2021 but don't know how to record the "refund" to this vendor.
Solved
Best answer January 06, 2022

Best Answers
RoseJillB
QuickBooks Team

How can we record a deposit made by a contractor to reduce his payments to under $600.00?

Thanks for your prompt reply, @HollyJoy. Let me share with you some information about entering a refund from the vendor in QuickBooks Online (QBO).

 

You can create a bank deposit for the vendor’s refund. Creating a bank deposit affects the same expense account to reduce the expense balance.

 

Also, make sure that the vendor’s profile is not tracking for 1099.

 

On the other hand, I added this article about entering a refund from a vendor.

 

If you need further assistance, you can leave a comment below. Stay safe!

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3 Comments 3
Rustler
Level 15

How can we record a deposit made by a contractor to reduce his payments to under $600.00?

Write him a check or pay with cash and use the same account you used when you deposited the funds

HollyJoy
Level 3

How can we record a deposit made by a contractor to reduce his payments to under $600.00?

I probably asked the question incorrectly - We paid our pianist $650.00. It shows up under his name as a vendor. He repaid us $55.00 so we don't have to create a 1099. How do I record the $55.00 deposit so it reduces this vendor's expense?

RoseJillB
QuickBooks Team

How can we record a deposit made by a contractor to reduce his payments to under $600.00?

Thanks for your prompt reply, @HollyJoy. Let me share with you some information about entering a refund from the vendor in QuickBooks Online (QBO).

 

You can create a bank deposit for the vendor’s refund. Creating a bank deposit affects the same expense account to reduce the expense balance.

 

Also, make sure that the vendor’s profile is not tracking for 1099.

 

On the other hand, I added this article about entering a refund from a vendor.

 

If you need further assistance, you can leave a comment below. Stay safe!

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