The bill was paid by credit card and then a portion of that bill was refunded to us by our vendor via paper check. I am not sure the article is related since it's about customer payments and my issue is about a refund from a vendor. 

I appreciate the details you've given, @SMcKee.

Given that you already have credits on the bill, all you have to do is to apply the credits upon paying the bill. I can walk you through how to achieve this.

You may follow these steps below:

1. From the Banking menu, click Make Deposits.
2. If the Payments to Deposit window appears, click OK.
3. In the Make Deposits window, click the Received from drop-down and choose the vendor who sent you the refund.
4. In the From Account the drop-down,  select the appropriate Accounts Payable account.
5. In the Amount column, enter the actual amount of the Vendor check.
6. Enter a memo, check number, payment method and class.
7. Click Save & Close.

Once done, you can proceed with linking the deposit to the bill credit. 

To do that:

1. From the Vendors menu, select Pay Bills.
2. Check the Deposit that matches the Vendor check amount.
3. Select Set Credits and apply the Bill Credit you created earlier then click Done.
4. Click Pay Selected Bills.
5. Select on Done.

You may also refer to the steps number 1 & 3 in this article: Record a vendor refund in QuickBooks Desktop.

If you need further assistance in performing this procedure, feel free to reach out to our Customer Care Team. They have the necessary tools that can guide you through the steps.

That should get you on the right track. Please let me know how that works for you. I'm here provide you additional assistance if you need anything else. Have a good one.

Thank you - Yes, this is where I am unable to move forward; the linking the deposit to the credit. 

I can not pay a credit through Bill Pay. I can only pay positive bill amounts.

I do not want to leave the credit lingering because this is a vendor we rarely use and when we do they are CC transactions (which I know you can do round-about through bill pay but that is not efficient). 

Please help me link the deposit to the credit 

Original Message: Following the steps on https://quickbooks.intuit.com/learn-support/en-us/refund-payments/record-a-vendor-refund-in-quickboo...

I 1) Created a deposit of the vendor check 

2) Created a bill credit 

I am unable to complete step 3 because I only have the bill credit for the vendor in the system and negative amounts do not populate in the "pay bill" screen. We will never write a check for the vendor so I don't want the credit sitting around. I also want to make sure the deposit is linked to the bill credit so it can reflect on job costing. 

I am using Quickbooks Enterprise: Contractor 19.0 Desktop 

Thanks for reaching back out, @SMcKee.

I'd like to ensure that this refund concern gets taken care of. For me to provide the best resolution, may I ask a screenshot of your deposit, and with the pay bills section? 

Having this would be a great help so I can check why you're unable a credit through Bill Pay. Please get back to me with some more details about this and we'll take it from there.

Feel free to mention my name so I'll be notified. I'll be keeping an eye out for your response to this. 

@BettyJaneB Please see below Bill Pay: I will have to attach the deposit and credit to separate reply's as it is only allowing me to add one attachment. 

@BettyJaneB Please see below Deposit: I will have to attach the Bill pay and credit to separate reply's as it is only allowing me to add one attachment. 

@BettyJaneB Please see below credit: I will have to attach the deposit and bill pay to separate reply's as it is only allowing me to add one attachment. 

Hello, @SMcKee.

The information you've given are very helpful, I've already verified the reason why you're unable to pay the credits when paying bills.I'd be happy to guide you on how to fix this.

Based on the screenshots you've given, the account where the amount should be deposited from should match the account when paying bills. In this case, you'll need to change the account in the "From Account" on your deposit so it will show up upon paying the bill. This way, you'll be able to apply the credits.

That should do the trick, SMcKee.

Please let me know how it goes. I want to ensure you're all set with this refund concern. Wishing you and your business continued success!

@BettyJaneB  Thank You! I am all set 

I am really happy to hear the issue was fixed, @SMcKee.

Please know that my doors are always open to help if you have any other concerns with QuickBooks. Feel free to post again, and I'll make sure to get it taken care of. 

Here's to more successful business transactions!

When I do this, the total expenses for the vendor is incorrect because it counts the deposit and credit twice.

Let me explain how it works, justineks.

Everything is correct. There are two different amounts because when we record the refund, which is the bank deposit, we've linked it to the vendor credit. 

I suggest not to check it through the vendor's profile. The total that you can see from there is based on the amount per line. You can use the Transaction List by Vendor report. Go to the Reports menu, then search and select the said report. From there, you'll see that the deposit offsets the vendor credit. 

Reply again if you have more clarifications. I'm always here to help.

EXCELLENT! Thank you so much.

Hello 

Since my research lead me here figured may as well post my problem in this thread.

Problem:

The Deposit associated with the Vendor Refund and the Vendor Credit are both showing up in the Unapplied Cash Bill Payment Expense Category on the P&L.

They offset each other. (=/-).

I've tried both methods (Pay Bills and Write Check) to link the two tranactions. Each method allows me to see the two transactions on the right hand side of page and link the two together. In both instances, the amount recorded is zero as per the instructions.

I've verified all accounts and classes are the same and all dates are the same - several times.

No matter which method used (along with several of my own approaches - lol) can i get these transactions to remove themselves from the Unapplied Cash Bill Payment Expense Category.

Any suggestions on how to resolve this situation?

Thank you in Advance for any assistance rendered.

Let me provide additional information, @mkm2.

The Vendor Credit and the Bank Deposit will show up on the Unapplied Cash Bill payment up until the Date to when they were linked. Since the transactions are already linked with the Bill Payment. 

Let's make sure that you included the bill payments date when you run the Profit and Loss report. This way the transactions will remove from the Unapplied Cash Bill Payment Expense Category.

To learn more about running and customizing reports in QBDT, you may check this article: Understand reports.

Reach out to me if you have any other concerns or questions about QuickBooks. I’m here to answer them for you and make sure you’re taken care of. Have a good one.

Thank you for the reply. No problem with dates of transactions vs. report date.

Perhaps some more information / details would be helpful to those attempting to assist me.

When reviewing the Vendor Balance Detail Report  both transactions appear and which (if I'm understanding the process correctly) would, if properly linked, then disappear.

1. Looking at a Vendor Transaction Detail Report, if one clicks on any line item, you can see both the Deposit and the Vendor Credit available to be utilized at the right hand side of the view.

2. This fact tells me that (per the various Help Articles) all one needs to do is either "Write a Check" or Pay a Bill" in order to link the two.

3. So a moment ago, I executed a Pay Bill transaction which then linked the two and they now show up in the Vendor Transaction Details Report. And now (again) both the Debit and the Credit are appearing in the Unapplied Cash Bill Payment Expense Category on the P&L Report.

4. All dates are the same. There are no outstanding Vendor Bills. there is nothing listed in the A/P Aging Report.

5. This tells me the transactions have been properly linked and the "issue" should be resolved.

However - - - - - - -

And yet the two transactions (the Credit Memo and the Deposit are being reported on the Unapplied Cash Bill Payment Expense Category line item of the P&L Report.

That is the situation / problem. 

All suggestions on how to resolve this "quirk" are appreciated.

TIA

I appreciate the complete details you've provided, @mkm2.

When creating a credit or refund, always select the same bank account that is originally used in paying the bill. Since you've used a credit card in paying the bill, let's also make sure to post the credit on the same account.

Also, let's first run the Verify and Rebuild Data tool to help us identify some data issues within your company file. Here's how to verify your data:

1. In your QuickBooks Desktop company, go to the Window menu.
2. Select Close All to close all active windows.
3. Once done, go to the File menu.
4. Choose Utilities, then select Verify Data.

If you'll receive the message "Your data has lost integrity", it means there's data damage in your company file. To correct this, continue in rebuilding your data. This process will require you to back up your company file to ensure you have a secure copy of it.

1. Go to the File menu.
2. Choose Utilities, then select Rebuild Data.
3. Click OK once prompted to backup data.
4. Select OK when receives the message "Rebuild has completed".

In case you accidentally write a check to pay an existing bill, the two transactions won't be linked and the bill will still be in an unpaid status. To fix this, you can refer to the Bill shows as unpaid after writing a check-in QuickBooks Desktop article for the recommended solutions. 

Keep me posted if you have other questions. I'm always here to help.

Thank you for the reply.

My apologies for not specifying which program I am working with.

Working in QBO at the moment regarding this problem.

I have confirmed the Deposit has been assigned to the same bank account the payment to the vendor was made from.

A Credit Memo does not allow for a cross reference to the bank register. It only allows for assignment of the cost code.

My understanding is that the "link" is made via the Vendor Name rather than the COA's. Please correct me if I am misunderstanding the "behind the scenes" relationship here between the Vendor Credit and the actual refund received (deposited into bank account).

I do appreciate you taking the time to work on this IamjuViel.

Thank you for providing detailed information about your concern, @mkm2.

Since the 3 transactions are still showing on the unapplied cash payments considering that they have the same date, I suggest contacting our support team so that they can check on the transactions to verify the problem. They have tools to remotely view your end and to secure your personal information.

You can also seek help articles, whenever you encounter some QuickBooks problem. Some of the articles will give you tips in running your business and some are about the issues in QuickBooks with solutions. 

Feel free to post here if you have concerns with QuickBooks. Community is always one post away. Stay safe.

Thank you for the reply DivineMercy_N

I followed up on your recommendation yesterday and spoke twice with Support Team members. Both individuals were very helpful.

The conclusion reached after redoing everything again is that there may be a "software glitch".

But before I request Intuit software engineers to take a look, I would like to present here once again (with enclosed png files) how the existing data entries are showing up in the various reports so that maybe someone here in the community can perhaps "catch" an error in the actual data entries.

The attached files present the following information:

1. P&L Report - shows the two transactions showing up on the Unapplied Cash Bill Payment Expense line. Important Note - please notice this is the P&L by Class Report. If the standard P&L Report were run these two transactions would not appear (unless you clicked on the 0.00 Total).

2. Deposit - this window appears if you click on the -486.00 in Class column 3.

3. Credit - this window appears if you click on the 486.00 in Class column 8.

4. Accounts Payable - this view shows / confirms that the Deposit and Vendor Credit have been properly linked.

5. Vendor Transaction Detail Report - and finally If I understand what this report represents (which is a record the transactions that have been "routed through" the A/P account. This report may provide a "hint" of where the "software glitch" is occurring. Please notice that in this report both the Deposit and the Vendor credit are showing as negative values. However in all the other reports / views presented above, there is a +486.00 and a -486.00. That is the only "oddity" I've been able to discern.

If anyone who cares to try to tackle this problem would like to see any other details regarding the associated transactions. please drop a note here and I will follow up.

Hmm - apparently only one file can be uploaded per post?

Thank you DivineMercy_N for your response. I followed up on your recommendation yesterday and worked with two QBO Support Team members yesterday. Both were very helpful. After reviewing the existing transactions and even redoing all the transactions, the conclusion reached is that we "think" the transactions are properly linked and that there is a "software glitch" occurring.

But before I request Intuit software engineers to get involved, I've decided to post the current situation here along with png files so anyone who might reviews this situation may be able to figure out where I may have made a data entry error.

I've also discovered that only one png file can be uploaded per each post. So the information i am presented will be provided in five posts (including this one).

The first file is the P&L Report by Class - this is where part of the problem lies because if the standard report were run, unless you happened to click on the 0.00 total you would not even have noticed there are transactions showing up in different classes that are associated with this one issue. And yes, every line item of every transaction has the same identical Class assigned to it.

3. Credit png

4. A/P Report

5. Vendor Transaction Detail Report