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! Go to Solution.
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)?
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.
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.
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.
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?
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.
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:
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.
I have had the exact same problem many times. I have found that with older transactions, I can go into the "split" view, and categorize the cash refund deposit as coming *from* an expense account, which puts a negative line item into the expense account, despite the deposit having a positive value. I have also run into times where I cannot for the life of me get this to work, so success may be limited.
Welcome aboard to the Community, @climatelog.
When getting a cash refund for purchases, you'll need to record them first using a vendor credit and deposit in QuickBooks Online. Once done, the next process would be linking both of the transactions to keep expenses accurate.
To ensure the refund hits the expense account, enter a vendor credit through these steps:
Here's how to make a deposit:
The next step would be linking the bank deposit to the vendor credit:
Once done, you can match the downloaded transaction from bank feeds showing as income to the deposit (see screenshot below). Since the deposit is linked already, it'll automatically be recognized as an expense.
Please visit the Enter a refund from a vendor article for future reference. It provides additional insights about the process.
Let me if you have further questions or concerns, and I'll be sure to get back to you.
This doesn't answer the original question because "Vendor Credit" is a premium feature that isn't available for QBSE. This answer has been given multiple times on this question, and it's annoying that it keeps being given!
Hi again, @climatelog.
I appreciate you for getting back to us and adding more details. The answers provided above depend on the QuickBooks product attached to the main question.
Since you're using the Self-Employed version, recording them is unavailable. It will offset the business expense within the system, so I recommend to exclude or tag the refund transactions as Personal.
I understand how the option you're looking for is beneficial to your business. Right now, it's only available to the other versions. To ensure your voice is heard, I can pass along another feature request on my end.
For future reference about excluding transactions, visit the Exclude or delete transactions article. It also provides detailed instructions for accessing Self-Employed through the web browser and mobile app.
Stay in touch whenever you have additional questions about QuickBooks Self-Employed. I’m here to make sure you’re taken care of. Have a great rest of the day.
I dread when having to try to deal with supplier credits and refunds.
The method of linking the deposit to the supplier credit never works for me as '
you can not add a credit for a supplier without any open bills'
The option to allocate via 'pay bills' does not work as the supplier will not appear there either.
I don't understand why QuickBooks can't have an easy to use option for supplier credits and refunds like Sage Online and Xero do?!
We appreciate and have taken note of your feedback, KtotheC.
For now, you can only add or apply a vendor credit to an open or partially paid bill. Otherwise, you'll receive the error similar to what you've you shared in your screenshot. Additional details about managing vendor refunds or credits are discussed in these following articles:
We'll definitely send your feedback to our product engineers. Most of the recent updates that were rolled out were actually based from the suggestions and feature requests that shared in the Community.
Lastly, you'll want to run the Vendor Balance Detail report if you want to quickly see or review vendor's balances. You can go to the Reports menu and look for Vendor Balance Detail.
Please don't hesitate to reach out to us again if you have other questions in mind. We're always here to help you out again.