Use credit card credit from that vendor

I am having a similar problem and not finding an answer (to a problem that should be simple.) 

I make purchases at a local store. When I m get my  credit card statement there are always several small refunds for less that a dollar. Such as $0.31 , $0.80, $0.24. 

I have no idea why this happens. But I need to find a way to apply the credits in my credit card transactions.

Right now I am showing it as a credit card payment from personal expense. I have no idea how this affects my books though.

HOW do I apply credits to my credit card in QB??????

Hi there, @PMcAwe. Recording a payment that didn't happen might give you confusion on our record over time. Allow me to share some details about recording a credit card credit in QuickBooks Online (QBO).

Any accrued expense will affect your books. You may create a Credit Card Credit transaction to record it and enter the vendor's name to track it properly.

Here's how:

1. Go to the + New menu.
2. Click Credit card credit under the Vendors column.
3. Choose a payee, credit card account, then set the date.
4. Fill in the required fields.
5. Select Save and close.

To know more details about giving credits to a vendor, you can check out this article: Applying vendor credits.

If you have recorded it using another method, I'd recommend contacting your accountant with QuickBooks experience. They know what's the best workaround that fits your business. They can also check your business register and transactions to ensure that you've recorded your data correctly.

Please let me know if you have any other questions or concerns. I'm always here to lend a hand. Take care! 

I've had 3 refunds this year from stuff I had to return (business credit card) and yea it's a pain. There's so much selecting and categorizing. For example the category for REFUND doesn't exist. On my first refund it had the refund on there several times even though only one was ever done by the store. And of course they can't be deleted so everything is off anyways. Every time I have a refund I just get anxiety thinking what kind of nonsense is going to happen in the program. I thought I was alone. There's gotta be better, more streamlined methods to do and especially Undo stuff on here.

Hello there, jmphoenix2000.

I understand the inconvenience of looking for a specific category for a transaction.

As of now, a Refund category is unavailable. Although it is not yet possible, I advise providing Feedback to our developer's page. You can do this by clicking the Gear icon and selecting Feedback.

You can track feature requests through the QuickBooks Online Feature Requests website.

I'd also suggest reaching out to your accountant so they can guide you on the correct categorization of the refund.

For more resources in managing transactions, you can check this article: Categorize transactions.

You can always get back to this forum whenever you have questions about the categorization process.

Creating a CC Credit will allow matching of the downloaded credit card transaction refund, but it now show's the total under the Vendor's details as double the actual credit since there was a credit from the initial bill AND the manually entered Credit Card Credit. 

Example. Entered a bill for $1,000. Paid with credit card $500 deposit, which was linked to the bill in the Banking transactions. Vendor ran credit card for $700 ($200 more than they should have). That transaction was matched to the remaining balance on the bill. The overage created an additional credit in the amount of $200. 

Vendor credits the $200 overpayment to the credit card. 

Manually creating a New Credit Card Credit allows matching the Banking Transaction, but doubles the credit on the Vendor account instead of zeroing it out. I haven't reconciled to see if there's also some amount stuck in A/P. 

Hi there, @mm np. 

It seems that there was an overpayment that was made. You'll want to create a vendor's credit of $200 and choose the item that the vendor refunded. After that, create  a credit card credit using the Accounts Payable account under the Category field. Here's how:

1. Go to the +New button.
2. Select Credit card credit.
3. Choose the payee.
4. In the Bank/Credit account field, select the credit card account you received the refund.
5. Select the date in the Payment date section.
6. In the Category details section, select the same Accounts Payable account of your original purchase.
7. Enter the amount.
8. Click Save and close.

Once done, pay the bill and link the vendor and credit card credit to it. Lastly, match it your bank transactions.

To learn more about vendor credits in QuickBooks Online, you can check out this article: Applying vendor credits.

Additionally, you may open this article to view details on how to run a particular report that will reflect all payments made to vendors: Run a report with vendor totals.

Please let me know if you have additional questions or concerns about handling overpayments in QBO. I'll be here every step of the way. Keep safe!

Hi @AbegailS_ , 

I already created the Credit Card Credit. As I said, creating a CC Credit allowed matching of the Bank transaction credit card transaction refund, but it adds to the total credit for the Vendor account as opposed zeroing out if it where to match to the vendor credit that WBO automatically creates from the bill when there are payments in excess of the bill total.  

In the attached image, selecting the bill and the 2 applied payments shows the vendor credit. This is the amount we all want to match to the refund entry from the Bank transactions. We don't want to create a new entry because now there's a double entry that has to be reconciled somewhere. 

Thanks for getting back and providing a screenshot of your concern, @mm np. I'm here to help you zero out the Vendor Transaction List total in your QuickBooks Online (QBO). 

Based on your screenshot, the selected total appears -$369.11 instead of zero. To fix this, you'll need to check all the transaction types including the Credit Card Credit as the selected total. 

However, it's best to consult with your accountant before doing this to ensure the accuracy of your accounts. You can visit this link and look for a QuickBooks accountant if you don't have one. Find a ProAdvisor. 
 

You may also visit this article to view created transactions in QBO: Run reports in QuickBooks Online. 

Should you need further assistance in managing transactions, just leave a comment below. Take care and have a good one!

Selecting all 4 showed a total of -$738.22. Two times the credit of -$369.11.

As I said above, the credit is being applied to the Vendor account twice - once from the auto created amount from the overpayment in the Bill and once from the manually created Credit card credit used to match the Banking transaction.

Hi there, mm np. 

Allow me to share some information with you to zero out the vendor transactions in QuickBooks Online (QBO).

Based on the screenshot and the information you provided, I can see that the function to Automatically apply for credit in the Account and Settings is turned off. 

In this scenario, the manual credit card credit was not applied to the open bill. When you go to the banking and found that the credit card credit isn't matched to the open bill.  You'll have to disregard the existing credit card credit. 

To fix this, let's go back to the Banking menu and undo the Matched bank transactions. This way, the bill will be opened again. 

Once done, let's go back to the Bill and mark it as paid. In Paybills, let's make sure that the manual credit card credit is linked to the Bill and Bill payments. 

Once everything is correct, we can go back to the Banking page and choose Match. You can select Find Match if necessary. 

If you want to apply the manual credit card credit to the open bill automatically, you'll have to turn on the Auto apply credit in the Account and Settings.  

Additionally, I'll share with you these articles if you want to know more about paying bills in QuickBooks Online:

• Enter bills and record bill payments in QuickBooks Online
• Enter a credit from a vendor
   

I’m always ready to assist you if you have any other questions or concerns about your transactions in QBO. Tag me in your reply and I’ll sprint back into action. Have a good one and keep safe.

@LeizylM , thak you for the reply. I turned on the settings you suggested but they don't seem to have any affect on this series of transactions. I've gone through the Bank transactions to undo the 3 transactions; I've deleted and recreated the bill payments and credit, but nothing brings the Vendor account balance to zero. It remains at twice the refund amount. 

Which entry are you referring to above with "You'll have to disregard the existing credit card credit."

Thanks for keeping us updated @mm np.

You may have entered a duplicate credit card credit. That said, we'll need to review the transactions made, then proceed to the Chart of accounts and delete the duplicates. Please proceed as follows:

View vendor transaction: 

1. Go to Get paid & pay or Expenses, then select Vendors.
2. Select the affected vendor.
3. Under the Transaction List, you should see all transactions for this vendor.

We can go ahead and delete the unnecessary duplicates. Here's how:

1. On the left panel, click the Accounting tab.
2. Select Chart of Accounts.
3. Locate the affected account that creates duplicate transactions, then select the View register under the Action column to review them.
4. Click each transaction and then select the Delete button.

As always, we encourage you working with your accountant to keep things accurate and guide you with the remaining process.

Moreover, I'd recommend reconciling your accounts every month to early detect errors and monitor the growth of your business. For more details, you can check out this article: Reconcile an account in QuickBooks Online. 

I'll be right here to continue helping if you have any other concerns or follow-up questions. As always, assistance is just a post away.

If I already categorized this refunded transaction should I just delete it then? And then add it through New-> Credit Card Credit?

Hi there, @MariiaN.

I want to help you. But I need more info to discern your concern better. Do you need to recategorize this refund transaction? Or are you trying to delete a duplicate entry? Additional information is much appreciated.

Once the details are ready, write us soon. We’ll always be here to help. Have a good one!

Hey there, thanks for your response,

Here's a screenshot of my situation:  The refund that I have received from Amazon to my CC has been categorized but now is showing in Red in the balance. So when I attempt to reconcile that month it's off by that exact amount ($30.49). 

Should I delete both of these refund transactions and add them through Journal Entry instead, so I can reconcile that month?

I''ll share information about a vendor credit card refund, @MariiaN.

To resolve the discrepancy, I recommend checking the transaction if it has the same category as the expense account on the original bill. If so, and you want to delete the transaction, Follow the steps below.

1. Go to the For review tab.
2. Select the checkbox for each transaction you want to exclude.
3. Click Exclude.

You can check this article to learn more about recording vendor credit card refunds: Enter vendor credits and refunds in QuickBooks Online.

I'm also adding this article for future reference in running reports in QuickBooks Online: Run reports in QuickBooks Online.

Feel free to click the Reply button below if you need further assistance with a vendor refund. I'm always here to help. Have a great day.

Before you categorize the credit (payment from vendor) that was automatically downloaded from your bank (in transaction list), go to +New>Credit card credit>(fill it out with matching cc, vendor, date, amount)>Save.

Then go to your transaction list to the automatically downloaded credit, and instead of categorizing it as an expense, click on MATCH.  Then find the manual cc credit you just made.  This should zero out the balance on your card, as well as zero out the vendor account.

After you've created your manual Credit card credit, just change the auto-created entry into a MATCH entry.  This will zero out the entries.

this is ridiculous.  When you add a credit card credit to a vendor account, it shows a negative in the vendor's account.  How do you clear this out of the vendor's account and bring it back to zero?  You can't "match" the credit card credit to anything in the vendor's account.  And the original charge is showing as "paid" on a previous statement,

Hi there, @RSM2024.

In order to assist you better, I would like to get more information about the transactions you are performing. Could you please provide me with more details about your process? It would be helpful to know if you're using the QuickBooks Online (QBO) bank feeds feature and if the credit card credit is a transaction downloaded from your bank's site. I'd also like to know more about where specifically in QBO you're seeing the original charge as paid. This will help me ensure that the information I provide is accurate. You can also attach any relevant screenshots to your response.

Thank you for your cooperation in advance. I will be waiting for your response to ensure that this issue is resolved as quickly as possible.

Are you giving or receiving a credit?

I read through this whole thread and am having pretty much the same problem as the poster you were attempting to answer. They were receiving a credit from a vendor as a refund on a credit card. You can see the refund on the card in the bank feed, and the questions becomes--how do you "Add" it, in order to clear it from the feed and have it log properly in the vendor account as a credit to your business? If you create a "Credit card credit", all it does is add to (or create) a negative balance in the vendor account, without matching it to corresponding card activity, because there doesn't seem to be a way to match it to the exact money-in transaction on the bank feed, like the way you would match up a bill to a vendor payment. 

I wonder if you just have to create a Credit card credit and then exclude that transaction from the bank feed...?

After I make the "credit card credit" and save, "MATCH" now appears in my bank transaction list under the "action" column.  That doesn't happen for you?