How can we record a deposit made by a contractor to reduce his payments to under $600.00?

HollyJoy · ‎January 04, 2022

Through a fluke, the pianist at our church was paid just over $600.00. He repaid us the $50.00 so he doesn't need a 1099. We deposited that amount in Dec, 2021 but don't know how to record the "refund" to this vendor.

RoseJillB · ‎January 06, 2022

Thanks for your prompt reply, @HollyJoy. Let me share with you some information about entering a refund from the vendor in QuickBooks Online (QBO).

You can create a bank deposit for the vendor’s refund. Creating a bank deposit affects the same expense account to reduce the expense balance.

Also, make sure that the vendor’s profile is not tracking for 1099.

On the other hand, I added this article about entering a refund from a vendor.

If you need further assistance, you can leave a comment below. Stay safe!

View solution in original post

Rustler · ‎January 04, 2022

Write him a check or pay with cash and use the same account you used when you deposited the funds

HollyJoy · ‎January 06, 2022

I probably asked the question incorrectly - We paid our pianist $650.00. It shows up under his name as a vendor. He repaid us $55.00 so we don't have to create a 1099. How do I record the $55.00 deposit so it reduces this vendor's expense?

RoseJillB · ‎January 06, 2022

Thanks for your prompt reply, @HollyJoy. Let me share with you some information about entering a refund from the vendor in QuickBooks Online (QBO).

You can create a bank deposit for the vendor’s refund. Creating a bank deposit affects the same expense account to reduce the expense balance.

Also, make sure that the vendor’s profile is not tracking for 1099.

On the other hand, I added this article about entering a refund from a vendor.

If you need further assistance, you can leave a comment below. Stay safe!

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How can we record a deposit made by a contractor to reduce his payments to under $600.00?