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How do I enter a Vendor refund?

My company buys parts to complete repairs on vehicles, but sometimes we buy extra parts that we do not need, so we decide to return them. How do I record a refund from a vendor? Is it recorded the same even if the original purchase was made from a check or debit card?

Solved
Best answer 10-15-2018

Accepted Solutions
QuickBooks Team

Hi khaleds, Thanks for reaching out to us! You can check...

Hi khaleds,

Thanks for reaching out to us!

You can check out this article to guide you through the steps on how to enter a vendor refund: https://community.intuit.com/articles/1145200.

Please let me know if you have any additional questions.

7 Comments
QuickBooks Team

Hi khaleds, Thanks for reaching out to us! You can check...

Hi khaleds,

Thanks for reaching out to us!

You can check out this article to guide you through the steps on how to enter a vendor refund: https://community.intuit.com/articles/1145200.

Please let me know if you have any additional questions.

Established Member

Re: How do I enter a Vendor refund?

Hi,

This support article appears to be written for a different version of QBO than I have. I'm using QBO Self-Employed and cannot for the life of me figure out how to get a vendor refund entered. Any time I try to enter the expense as a positive amount it just converts back to a negative amount.

 

How do I enter a refund received for a prior expense (e.g. service credit or returned supplies)?

QuickBooks Team

Re: How do I enter a Vendor refund?

Greetings, gsowa.

 

Welcome to the Online Community. Let me clear things up regarding recording vendor refund.

 

At this time, we don’t have any specific categories for refunds/reimbursements in QBSE. To straighten out your record, you can exclude the refund transaction when you categorize your business-related expenses since you’re not receiving or spending anything from your account.

 

We love to hear customer’s ideas since it guides us on how we can improve the product. I suggest you let our Product Development Team know that adding a category for refunds/reimbursements is a great feature to have.

 

You can send send through the following link: https://selfemployed.uservoice.com/forums/242769-general.

 

If you have additional questions about working in QBSE, you can browse each topic found on this link: https://community.intuit.com/quickbooks-self-employed.

 

Thanks for giving me the opportunity to help. Wishing you the best with your business endeavors. Have a great day ahead.

 

Experienced Member

Re: Hi khaleds, Thanks for reaching out to us! You can check...

Sorry to be so dense, but I just don't get this.  How does Step 2: Link the deposit to the vendor credit work?  Within these steps, I don't understand 'd', as I am not able to locate the 'Add to Expense' or 'Add to Check' sections when creating an Expense or Check entry. 

 

My scenario involves a returned item to a hobby store and I'm trying to figure out how to enter the appropriate transaction(s) to account for the deposit we received from this return.

 

Any help you can provide would be greatly appreciated.   Thanks in advance.

QuickBooks Team

Re: Hi khaleds, Thanks for reaching out to us! You can check...

Thanks for reaching out to us, psneathen,


I can share some information about processing refunds in QBSE.

 

The steps provided in the article above only applies to QuickBooks Online vendor credits. Currently, QuickBooks Self-Employed is unable to record refunds/reimbursements.

 

To accomplish the task right now, you can exclude the refund transaction when you categorize your business-related expenses since you aren't receiving or spending anything from your account. You don’t have to worry we can pull up a Profit and Loss report to compare and check the accuracy of your data.

 

I can see how this option can be beneficial to help you and your business' success, so I'd recommend sending our developers your product preference through this link: https://selfemployed.uservoice.com/forums/242769-general.

 

That's should do it, psneathen. Please keep me updated if you have any more QuickBooks concerns. I'm here to assist you whenever you need help.

Experienced Member

categorizing refunds in quickbooks online

There seems to be miscommunication on how some small business owners use quickbooks.   I often don't have much time to pre-emptively categorize transactions before making purchases or returning items.  I make the purchase with my business credit card and once the transaction shows up in my quickbooks online feeds I categorize it and I'm done (I hope).  When I return an item I wait for it to show up in quickbooks then categorize it appropriately.  This is more efficient for my time and hope this is an acceptable way of entering transactions.  None of the previous solutions address this type of entry.  Can I categorize the return I made that shows up as income in my feeds under the expense category with the same vendor ?  would this be acceptable and balance out the initial transaction and return?  

QuickBooks Team

Re: categorizing refunds in quickbooks online

Pleased to see you here, @gratitude.

 

Allow me to add more information on how recording a vendor refund works in QuickBooks Online.

 

In recording a refund transaction, you cannot categorized a refund (which is shown as positive amount or income when downloaded from your bank) as an expense account right away. To avoid getting a negative balance for your vendor, let's follow the correct process of recording a vendor refund in the system.
    

  1. Click the Plus icon (+).
  2. Choose Bank Deposits.
  3. In the Deposit To drop-down, select the account where the money will be deposited.
  4. Type in the Date.
  5. Enter these fields:
    • Received From: Choose the vendor who sent you the refund.
    • From Account: Select the Accounts Payable account or the account used in the expense transaction.
    • Amount: Enter the vendor check amount.
    • Memo, Chk No, and Pmt Meth are optional fields.
  6. Click Save and Close.

Once a deposit is entered, you'll see a positive balance in your vendor's information page.  To zero it out, you'll need to link the deposit to a vendor credit. Here's how:

 

  1. Go to the Plus icon (+).
  2. Select Expense or Check.
  3. Choose the payee.
  4. Once you select a payee, you'll see a window on the right corner of the screen showing the deposit transactions you've created.
  5. Click on Add.
  6. Click Save and Close.

That should do it!

 

For additional insights, you may check out this article: What is the difference between Pay Bills and Write Checks?.

 

Feel free to leave a comment below if you have follow-up questions about recording refund transactions in QuickBooks Online. I'm always here to help.