I have inventory returned to the vendor resulting in a deposit to my bank account. QB prevents a deposit into an inventory account. Is there a way around this?

Thank you for checking in with us, bporterstl.

I'd be delighted to lend a helping hand with your inventory in QuickBooks Online.

The other way is to enter a vendor credit and link it to the deposit.

To do this, first, enter the vendor refund check in the Deposits screen:

1. Select the Plus icon (+) on the Toolbar then Bank Deposit.
2. In the Add other funds to this deposit section, fill in the following fields:
       • Received from: Select or enter the vendor name.
       • Account: Select the Accounts Payable account.
       • Amount: Enter the check amount.
3. Select Save and close.

Next, link that deposit to the vendor credit:

1. Select the Plus Icon (+), then Expense or Check.
   (Note: Both Expense and Check to recognize and record expenses. When you use Check, the transaction adds to the list of checks that you can print.)
2. In the Choose a payee drop-down, select the vendor name.
3. Leave the Reference / Check #, Date, Amount and Memo fields blank.
4. From the Add to Expense or Add to Check section, select Add for the outstanding vendor credit and deposit.
5. Select Save and close.

I've got a recommended article that contains more information about this: Manage vendor credits.

You can stay connected with me by adding a comment Reply if you have additional questions. Have a good one.

I was getting the same issue. I have a return of inventory that is showing up as a deposit on the bank statement. I tried to create the credit memo, but I do not see the buttons you are referring to. Can I not create credit memos in Simple Start Edition?

Hello, @WildWestWeeb. 

Thank you for reaching out to the Community. A Credit memo is available in Simple Start Edition. To isolate this case, we can perform basic browser troubleshooting to fix the issue. 

There are times that the browser is full of frequently accessed page resources, causing some unusual responses. We can start by accessing your account in a private browser. This mode doesn't save your searches, visited pages, log in details, and cookies.  

You can use the shortcut keys that I've listed below.
 

• Ctrl + Shift + P (Firefox)
• Command + Shift + N (Safari)
• Ctrl+ Shift + N (Google Chrome  

Once you're in, let's try again to go + New icon and double-check. If we're able to view and create, we'll have to go back to your regular browser and clear the cache to get rid of the accumulated site data. 

Clearing it will refresh the system, and you'll be able to work with clean trash. However, if the issue persists, try using other supported browsers. It could be that the one you're currently working on has a temporary issue with QuickBooks.  

You can also check this article for more information:  

• Enter and apply a credit memo or delayed credit 

There you go! You will be all set in applying the credit to your customer's. 

Feel free to drop by anytime, I'm here if you have further questions. Have a great day. Take care!