A vendor just gave me a credit. I don't have an expense for the vendor but I will in the future (for the same amount of the credit). How do I record this credit?

Hi there, @aaron-bg.

I'd be glad to help you record your vendor credit in QuickBooks Online (QBO). Here's how:

1. Select + New.
2. Click Vendor credit.
3. In the Vendor drop-down list, choose your vendor.
4. Depending on how you record purchases with this vendor, enter the Category details or Item details.
5. Select Save and close.

Once done, deposit the money you got from the vendor.

1. Click + New.
2. Select Bank deposit.
3. In the Account dropdown menu, choose the account where you got the refund.
4. In the Add funds to this deposit section, fill out the following fields:
   • Received from: Select the vendor who gave you a refund.
   • Account: Select 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.
5. Click Save and close.

Finally, use Pay Bills to connect the bank deposit to the vendor credit. Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your vendor expenses accurate.

1. Select + New.
2. Click Pay bills.
3. 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 US $0.00.
4. Select Save and close.

For other scenarios in recording vendor credits, you can check out this article: How to record a refund or credit from a vendor in QuickBooks Online.

Please let me know if you have further questions about recording credits from your vendor. I'd be glad to help you out. Have a good one.

Hi @ReymondO ,

Thank you very much! That worked perfectly. 

One follow-up question: when I click on Bank Transactions under "For Review" it still shows me a record for this Vendor, with the amount $100, and Assign To says 1 Record Found "Deposit: $100 VendorName". Should I click the "Confirm" button? 

Thanks,

Aaron

Hi there, @aaron-bg.

It's good to hear that the steps provided by my colleague work on your end. Let me add some information about your follow-up question.

The For Review tab captures all the transactions from your bank account, and some of these transactions may have corresponding records found. With this, you can click the Confirm button to match it with the deposit you previously recorded in QuickBooks. You can also review the matching record found to avoid mistakes and duplications while managing your transactions. 

Furthermore, once you're done matching this transaction, you can add it to the Categorized tab for categorization. 

Also, you can reconcile your account, so they match with your bank statements and maintain your account accurate and balanced. 

You're always welcome to comment back and let us know if you have other concerns with managing your transactions. We're always here at your service. Have a great day ahead and advance Happy Holidays!

Hi @JuliaMikkaelaQ ,

Thank you for your assistance on this. I understand the For Review tab will capture all transactions from the bank account. How do I know for sure that it is matched with the deposit that I previously recorded? How can I review that matching record? I just want to make sure it's fully working. 

Also, what do you mean exactly by adding to the Categorized tab for categorization?

Thanks again,

Aaron

Hello there, @aaron-bg. Let me chime in on this thread and provide additional information.

To verify if the transaction matches your deposit, go to the Bank transaction page, click on the transaction, and view the details. The matching record will also be available there.

In your case, adding to the Categorized tab means that you have successfully matched your bank statement to the transaction you made in QuickBooks Online (QBO). 

I've also included some helpful articles that will give you more insight into the process of working with bank feeds in QBO:

• Match online bank transactions in QuickBooks Online
• Categorize online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

If you have any further questions about the banking process in QBO, feel free to ask. I'm always here to help. Have a happy holiday season!