How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Store credit / gift cards are best treated as their own bank or credit card account (or cash account).  This case of a return is special, in that you need to enter a transaction for the opening balance that is basically a deposit (if you use a bank account) or a credit (if you prefer the interface for a credit card) - and which reverses the expense of the originally charged item.  E.g., if the returned item was for expense account "Tools", then the deposit would refer to "Tools" and the memo list the returned item (perhaps even attach a copy of the receipt as an attachment).

Then, just enter purchases against the balance as electronic checks (e.g.) if you used a bank account, or as a charge if you called the gift card/store credit a 'credit card' account.

Because gift cards / store credits can only be used at specific stores, it is best to create a different account for each store involved in order to track them.  My view anyway.

We have reloadable gift/Visa cards for our employees to use, and also track costs charged to each Job.  When I record a credit like this, it is essentially a deposit, but the deposit screen doesn't give the option to reduce the cost charged to that specific Job.  How can I do this to reduce the job cost?

Hi, seswende.

Could you please tell me which amount are you trying to reduce? Is it the cost or the credit amount?

This way I'll be able to provide you with the right issue resolution and ensure that your questions are addressed accordingly.

I look forward to your reply. I'm always here to lend a hand.

I know how to post the credit return against the reloadable Visa gift card, which I have set up like a Cash/bank account.  But it seems to take multiple steps, and I was hoping to reduce the number of steps.  I record the Deposit of the credit back to the gift card, then record a credit transaction from the vendor, then tie the credit to the vendor bill credit, but I'd like to do it in less steps.  That just doesn't seem possible unless there's another way I don't know.

I am trying to post the credit back to the Job cost so it reduces the cost of the job.  I can't do that with just the Deposit entry because it doesn't give the option to post the credit against the related job.  I found an answer on another thread, which takes three steps.  It says to record the Deposit of the vendor credit against the reloadable Visa card, which is set up like a bank account.  Then I have to record a credit transaction from the Vendor, then tie the deposit to the credit as if I was paying a bill and applying the credit on that screen.  That screen does allow me to apply the credit back to the job.  But I'd like to do this with one step, and I can't figure out if that is possible.

Thank you for joining us here in the Community, @seswende.

The option to record the credit with one step isn't currently available in QuickBooks Online. I can certainly submit feedback for you to our product developers for it to be a possible option with future updates. For information on future updates coming to QuickBooks Online, you can take a peek at The QuickBooks Blog. 

If you run into any bumps in the road and need assistance with anything else, I'm only a reply away.

Thank you, but I dont have QB online, I use 2017 Desktop Premier.

Thank you, but I don't use online, I use Desktop Premier, currently 2017 version.

Hello seswende, 

We know that the process to record the credit returns requires the steps you've mentioned above. You might want to reach out to your accountant about it. They can share some practices that'll make this process easier.

Meanwhile, we'll share your feedback so our Product Development Team will put it into consideration for product updates. 

Your ideas would help us know where to focus the product enhancements to suit your business needs.

How is this done in QB desktop?