I need to record a refund from a vendor in a bank account. I have the SIMPLE START version so I can't use Vendor credit, Pay bills or Bill. How can I record this refund?

You can enter the refund as a deposit, D-quipp. It'll help you add the money back to your account.

Let me guide you. Here's how:

1. Click the New or Plus sign (+) button.
2. Select Bank deposit.
3. Under Add funds to this deposit, choose the vendor, select the expense account used, then enter the amount.
4. Ensure the bank account and date are correct.
5. Click Save and close.

You can check this article to help you learn more about bank deposits: Record and make bank deposits in QuickBooks Online.

Don't hesitate to let us know if you have other concerns. You're always welcome to post in the Community. Take care!

Thanks for this information for the Simple Smart subscription level.  I attempted this method but the vendor I need to record the refund on is also a 1099 tracked vendor. After I recorded the deposit, it did not show under the Vendor information and balance.  How can I ensure this is part of the 1099 tracked information?

I appreciate taking the time to post here in the Community, QuickWin.

I'm here to share some details about tracking your bank deposit as 1099.

Since the refund was made via a bank deposit, it's possible that this won't be tracked in the form. The transactions to report in 1099 are vendor payments.

Also, when tracking 1099, make sure your payments meet the threshold. Only those contractors paid above the annual $600 cash get 1099. For more details, please see this article: What is 1099, and Do I need to File One?.

For more details about tracking and managing 1099 in QuickBooks Online, I'd suggest checking out these articles:

• Create and File 1099s using QuickBooks Online
• Understanding Payment Categories for the 1099-MISC and 1099-NEC

Feel welcome to get back on this thread if you'll need assistance in dealing with vendor transactions and 1099. We're always here to help you.

Thank you for the information and links.  However, it isn't really answering what I need.

The vendor (a contractor) refunded my client using zelle, thus it is a bank transfer or deposit into her bank account.  My client also used zelle to pay the vendor (contractor). The total paid to the vendor is over the threshold.  The amount refunded by this zelle transfer may or may not make the difference, but in QBO it currently shows the vendor over the threshold for 1099 purposes but it does NOT show the refund via zelle transfer.

My question is HOW do I get it to show up correctly in the Simple Start level of QBO since I am unable to create a vendor credit?

Hi there, QuickWin.

Creating vendor credits is only available in the Essential and Plus version. As a workaround, you can use the Bank Deposit feature to record the credit. Let me walk you through the steps.

1. Click + New, then choose Bank Deposits.
2. In the Received From column, select the vendor who issued the check.

3. In the Account column, select the Accounts Payable account.

4. Click Save and Close.

I'm adding this article for more guidance on this process: Enter a refund from a vendor.

On the other hand, you can visit these links to learn more about what you can and can't perform with this plan.

• QuickBooks Online Simple Start
• QuickBooks Plan and Pricing

For future reference, you can match bank transactions in QuickBooks Online (QBO): Match and Categorize Bank Transactions in QuickBooks Online.

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Have a great day.