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In addition, you can simply create the credit in the vendor section of QB and then on the "Expenses" tab (if you are tracking inventory. If not then stay on that tab and go to the next line) in the "Account" drop down, select the CC account that the credit was issued to and reverse the amount of the credit (negative amount). The credit total will show as a "zero" total, but the CC register will show a deposit that you can use to match up with your CC statement.
Thank you for adding a reply and joining the thread, @Mariasherbert.
I'm here to help you record the transactions correctly in QuickBooks Online (QBO).
The steps above works for QuickBooks Desktop (QBDT), in QuickBooks Online (QBO) we can create a credit card credit. Let me show you how.
You can also reach to your accountant to ensure that this will be the best process for you. Stay in touch if you have any other questions. Have a good day ahead!
You're always welcome, @Mariasherbert.
Please know that our doors are always open here in the Community page. Feel free to drop a post if you have any other concerns in the future. Wishing you continued success!
I am using QuickBooks Online and I have entered the vendor refund to my credit card as a credit card credit as you describe. However I can not find a way to then apply this to the vendor credit that I had created previously. E.g. I returned items worth $50 to vendor and created a credit memo in the system (vendor credit) for $50. However the following month the vendor refunded the $50 to my credit card. I enter the credit card credit for $50. However there is no way to match this against the vendor credit that is still open. When I try to use the "pay bills" approach that is described for matching vendor refunds via check against a credit memo it does not work because the credit card credit is not available to be selected.
Hello there, @inishowen.
Thanks for trusting us in answering your concern. I can help you link the Vendor Credit and Credit Card Credit made in QuickBooks to record your vendor refund.
You'll need to create a dummy Bill and Make Payment to link these two transactions.
Please see my screenshots to visualize the steps.
You should be able to link the two transactions from your vendor. Let me know how things go once you've tried the steps. If there's anything else you need from me, feel free to comment below. I'm always here to help in any way I can. Have a great rest of your day!
Hello and thank you for your suggestion.
However it does not seem to work for me. I am using Quickbooks online and when I do bill payment I have the vendor credit available to select but not the credit card credit.
Also, as I think about it some more I think that perhaps it would not be appropriate from an accounting perspective to apply a credit card credit against a vendor credit as this would in effect be crediting the same account twice - correct?
So let me restate the problem and suggest what I think I need to do and then I would love to hear from others how you handle it.
Let's say I purchase $200 worth of inventory from a vendor, and pay using my credit card
I then decide to return $40 worth of goods and create a credit memo for $40.
However the vendor issues a credit card refund for the $40.
So now I need to process the refund from the vendor as a credit card credit.
What do I do with the credit memo?
Do I just delete the credit memo once I receive the refund?
If the credit memo was created in a prior period should I enter a bill to offset the credit memo?
I would love your input. This is a scenario that occurs not infrequently for my client. Thank you
Actually, when I coded the credit card credit to Accounts Payable it did show up to select when paying the bill. I had coded it incorrectly before. Thank you very much