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Join nowWe purchased an item from Home Depot with a credit card. We later returned the item and Home Depot refunded the money with an in store credit/gift card. I also need to record items purchased with this gift card.
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You will need to use "Credit Card Credit" (create + sign > Vendors > Credit Card Credit) as designated form in QBO, to handle return with gift card transaction.
When you start using the Gift Card for purchases, go to Expense Form (create + sign > Vendors > Expense) and select Home Depot Gift Card from drop down list and use it as a form of payment.
Once you start using negative balance should go down.
You will need to use "Credit Card Credit" (create + sign > Vendors > Credit Card Credit) as designated form in QBO, to handle return with gift card transaction.
When you start using the Gift Card for purchases, go to Expense Form (create + sign > Vendors > Expense) and select Home Depot Gift Card from drop down list and use it as a form of payment.
Once you start using negative balance should go down.
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?
We have a company credit card. We charge a variety of things like utilities, purchases at stores like Lowes, Home Depot, etc on it. We purchased an item (stove) at Lowe's. I simply wrote a check to the credit card company and had all the charges allocated to the correct accounts. A month later, stove was returned. I don't really want to create a bill - too much extra work. The stove that was returned created a negative balance on my next credit card statement so even though there are charges on the next month's statement, no amount was due. But I still need to allocate those charges into the proper accounts. How would we do this?
I know it can be rough when you have a negative balance, CBM Rentals. I'm here to help you with that.
We can create a Credit card credit in QuickBooks Online to track the amount for the returned item (stove). I'll show you how:
To ensure that your bank and credit card transactions are added to the correct accounts, I'd recommend checking out this article for the detailed steps: Categorize and Match Online Bank Transactions.
Additionally, I've added these resources that'll help you manage your vendor transactions in QuickBooks Online. This way, you can ensure your record is accurate:
I'm only a post away if you need more help in tracking your vendor transactions. It's always my pleasure to help you out again.
I'm using Desktop Pro 2018. I don't have a + New. What is that?
Thanks!
Good afternoon,
Thanks for sharing the program you use, CBM Rentals. The steps above are for our QuickBooks Online program, but for Desktop here is what to do:
I am leaving this article for you to learn more about setting up, using, and paying credit card accounts.
If you require additional support, please do not hesitate to post again. I'm always willing to assist you.
Thanks!. I saw how to create in the banking menu a credit card refund. But it doesn't help my situation.
The way I've always paid the credit card, and entered into QB, is to simply write a check. There may be 15 items on the credit card relating to various properties, so I enter each charge, choose the account (repairs, materials, travel, etc.) and a check is written. The entry takes the money out of our checking account and allocates the various expenses to the proper property.
So creating a Refund/Credit under the banking menu -> credit card, creates a liability on the balance sheet (with a negative number). Is that corrrect? It's not a liability. Its a reversal of a charge. What we purchased as a stove and paid for it. So on the check payment in November, the account was a fixed asset. It would have been depreciated. Now on the December statement, it was returned. No money exchanged hands. It's just a credit on the monthly credit card statement. How is that handled?
Thanks. I appreciate all your input.
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