Proper way to create credit memo for a company from the same group

Hi Fernando!

Welcome and thank you for posting your question. I'm happy to share the best way to enter your refund.

On the vendor-company side, you can create a refund transaction to record the returned transactions. Be sure to select the items and enter the returned quantity to update their inventory count.

On the customer-company side, you can record a vendor refund.

Let me know if you need more help with your transactions. I'm just a comment away.

Hi Jess,

I can't find the options that you mentioned, is it for QBE?  I'm not using the QBO.

Hello there, Fernando.

I'm here to help you in recording those transactions.

You're already on the right track with entering the rebates. You only need a few more steps to complete the process. After the vendor sends you a refund for a bill that is already paid, you'll need to record it as a deposit in QuickBooks. Here's how:

1. Go to the Banking menu, then select Make Deposits.
2. If the Payments to Deposit window appears, click OK.
3. In the Make Deposits window, click the Received from drop-down menu and then choose the supplier who sent you the refund.
4. In the From Account drop-down menu, select the appropriate accounts payable account.
5. In the Amount column, enter the actual amount of the refund.
6. Enter a memo, cheque number, payment method, and class as needed.
7. Hit Save & Close.

After that, you'll have to record a bill credit for the refunded amount:
 

1. Go to the Vendors menu, then select Enter Bills.
2. Tick the Credit radio button to account for the return of goods.
3. Enter the vendor name and the other necessary information.
4. Select the Expenses tab and then enter the accounts on the original bill. If this for the returned items, select the Items Tab, then enter the returned parts.
5. In the Amount column, enter the appropriate amount for each account/item.
6. Click Save and Close.

Once done, you can now link the deposit to the bill credit:

1. Go to the Vendors menu, then select Pay Bills.
2. Check the deposit that matches the vendor check amount.
3. Select Set Credits, then apply the bill credit you created earlier.
4. Hit Done, then select Pay Selected Bills.
5. Click Done again.

To learn more about this process, you can visit this link: Record a vendor refund. 

With regard to the customer rebate, you can just create a credit memo or issue a refund check to record the returned transactions. In addition, here's an article that you can read to learn how to refund a credit card payment in QuickBooks Desktop: Void or refund customer payments.

Do you have any other questions in mind? Feel free to leave them below and I'll get back to you as soon as I can.

Thank you!  

These steps will be useful when we received the refund from the vendor,

in our case we have a debt with the Vendor, so we will reducing from the pending amount with the vendor.

If I'm right, I just need to skip the bank part, report the credit from the bill, and inform on the memo something about the credit letter from the vendor, is that correct?

Having an invoice to the vendor instead of a refund is ok, as long as we report the credit on the bill?

Hi Fernando,

Thanks for the additional details. Yes, you're right. You can directly create a vendor credit to record the items you returned. Then, you can use it you can pay any outstanding bills (debt).

You won't need to invoice the vendor because you're not selling the items to them. You're just returning them.

Let me know if you have additional questions in mind. Have a good day ahead!

Great  Thanks!

just a last question

since the parts are not related t a single invoice to request the return, how can i create a return order for a vendor?

could you give a step-by-step?

Thanks!

Thank you for following up, Ffraga.

I'd like to help and make sure you can process the return order.

You can create a vendor credit which will decrease the quantity on hand of the items your returning.

Here's how:

1. Go to the Vendors menu.
2. Click on Enter Bills.
3. Select the Credit radio button.
4. Choose the Vendor name.
5. Put all the necessary information the same with the Bill created.
6. Select Save & Close.

You can work with an accountant and check this article to also determine which scenario is best suited for you: Record a vendor refund in QuickBooks

Here's a link that you can use as your future reference: Adjust the current balance for a vendor

Click the reply button below for follow-up questions about vendors and credits. I'm always here to help. Have a great week!