How do we process a Melio refund for a Vendor?

I'd be glad to help you record the refund from your vendor in QuickBooks, @BizzieL.

How you enter the refund depends on how you record your purchases. 

Since you've already reconciled the original payment, we can use a vendor credit to leave a balance in your vendor's account. You can apply this towards any open or future bills. 

Here's how:
 

1. Select + New and click Vendor credit or Receive vendor credit.
2. In the Vendor drop-down list, select your vendor.
3. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting a credit for.
4. Click Save and close.

Please take note that we can't reconcile vendor credits since they are non-posting transactions. As a workaround, we can create a bank deposit and use an A/P account to offset the credit. This way, you can reconcile it on QuickBooks. 

1. Select + New and click Bank deposit.
2. In the Account drop-down menu, choose the account where you got the refund.
3. In the Add funds to this deposit section, fill out the following fields.
   • Received from: Select the vendor who gave you a refund.
   • Account: choose Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
   • Payment method: Enter the method your vendor used to refund you.
   • Amount: Enter the amount of your refund.
4. Click Save and close.

For the final step, use Pay Bills to connect the bank deposit to the vendor credit. Let me show you how:

1. Select + New and click Pay bills.
2. Choose the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
3. Click Save and close.

If you aren't sure about the process, I'd recommend reaching out to your accountant. That way, we can make sure that your books are accurate. Here's how to find a ProAdvisor in case you don't have one.

When you're done, you can now reconcile your account in QuickBooks. 

For additional reference in handling vendor refunds, you can check out these articles:
 

• Enter a refund from a vendor
• Handle vendor credits and refunds in QuickBooks Online

Please let me know if you need further help in recording vendor refunds in QuickBooks. I'll be here to help you out. Have a good day.

Hi @BizzieL,

you’re doing great. I wanted to see how everything is going about the refund concern you had yesterday. Was it resolved?

Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!