How to record credit/refund back from inventory purchase

Hello,

I'm sorry, but I'm totally confused, do you perhaps have a step by step illustration guide i can follow upon? as if I edit the original expense from $1000 to $800, it would not match with the feed of the original charge if that's what I'm being told to do.

Hi, @mikelu9661.

I'll guide you on how to create a vendor credit:

1. Click the New button.
2. Under Vendors, select Vendor credit. 
3. Choose the name of your vendor.
4. On the Category column, choose Credit/Refund Receivable and $200 for the Amount.

To create a new account according to @vpcontroller please refer to the screenshot below: 
 

       5. On the Product/Service column, enter the product and $800 for the Amount. 

You can also check this article for more detail: Enter vendor credits and refunds in QuickBooks Online.

That shall do it. If you have further questions please don't hesitate to post a questions below. I'll appreciate the opportunity to help. 

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@mikelu9661 wrote:

Hello,

I'm sorry, but I'm totally confused, do you perhaps have a step by step illustration guide i can follow upon? as if I edit the original expense from $1000 to $800, it would not match with the feed of the original charge if that's what I'm being told to do.

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@mikelu9661 

See the screenshot above for how to edit your original entry. 

After that, on the bank feed, all you have to do is use the same Other Current Assets account for the deposit amount.

That's all!

How would i be able to deposit the vendor credit tho? since its a credit card purchase/refund, usually I do vendor credit, then bank deposit to deposit the credit so i can match it with a bank feed to complete the credit. In this case since bank deposit don't actually have a credit card account to choose from, not sure how that part would work. But other then that yes I got the charter account part now & using it to match the received funds feed.

Hi mikelu9661,

You'll have to enter a deposit and link the deposit to the refund check if the vendor issues a refund check to you. Let me walk you through the steps.

To enter a deposit:

1. Click + New, then choose Bank Deposits.
2. In the Received From column, select the vendor who issued the check.

3. In the Account column, select the Accounts Payable account.

4. Click Save and Close.

To link the deposit:

1. Click + New, choose Expense.
2. Select the vendor whose refund check you deposited.
3. Click Add in the outstanding vendor credit.
4. Click Add in the Deposit.
5. Click Save and Close.

For future reference, you can match bank transactions in QuickBooks Online (QBO): Match and Categorize Bank Transactions in QuickBooks Online.

Let me know if you need further help. I'll always be here to assist.

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@mikelu9661 wrote:

How would i be able to deposit the vendor credit tho? since its a credit card purchase/refund, usually I do vendor credit, then bank deposit to deposit the credit so i can match it with a bank feed to complete the credit. In this case since bank deposit don't actually have a credit card account to choose from, not sure how that part would work. But other then that yes I got the charter account part now & using it to match the received funds feed.

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@mikelu9661 

It seems like you're making this more complicated than it needs to be.

You actually don't need to issue Vendor Credit. Are you getting a bank deposit or credit/refund on a credit card? In either case, you will need to use one account category to add a transaction, just use the Other Current Assets account per example. It looks simple to me.

But if you're creating Vendor Credit, we can handle that too, just use the same for account category (Other Currents Assets). And on the bank feed, you will then need to select Vendor and for Category, select Accounts Payable (A/P). This one is a bit complicated. 

Hope this helps!