I received a refund from a vendor, when I go to my vendor list, select the vendor to see activity, the refund is not showing, leaving a balance of 0, which isn't correct?

Hi there, cindycarlyon.

I've got steps on how you can record a refund from your vendor in QuickBooks Online. The first thing we need to do is to enter a vendor credit to ensure the credit hits the expense account used for this vendor. Here's how to enter a vendor credit:

1. Go to the + New and select Vendor credit.
2. In the Vendor dropdown menu, select your vendor.
3. Depending on how you record purchases with this vendor, enter the Category details or Item details. 
4. Select Save and close.

Next, we'll deposit the money you got from the refund. Here's how:

1. Go to the + New and select Bank Deposit.
2. In the Account drop-down menu, select the account where you got a refund.
3. In the Add funds to this deposit section, fill out the following fields.
   • Received from: Select the vendor who gave you the refund.
   • Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
   • Payment method: Enter the method your vendor used to refund you.
   • Amount: Enter the amount of your refund.
4. Select Save and close.

You can check out this article and proceed to Step 3 to complete the process: Enter a refund from a vendor.

Please let me know how the steps work. I'm always here if you have follow up questions.

Hi,

Thank you for this step by step, it's helping me with exactly what I am doing. To continue....I have my QB linked to the bank and therefore the deposit was downloaded....Do I skip the steps from bank deposit? Would you please help me complete my transaction by matching from the bank download to the vendor credit? 

Thank you!

Thanks for joining this thread, @flyingdogcoco.

It's my pleasure to help you match your bank transactions in QuickBooks. To get started, you don't have to skip the bank deposit steps since you need to record the transaction so you can match them.

Here's how to create a bank deposit:

1. Click + New.
2. Select Bank Deposit.
3. From the Account ▼ dropdown, choose the account you want to put the money into.
4. Select the checkbox for each transaction you want to combine.
5. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
6. Hit Save and close or Save and new.

After entering it, you can now match the deposit with your bank transaction. 

1. Find a downloaded transaction with the Match option in the Action column.
2. Note the Date, Description, Payee, and amount spent or received.
3. Select the downloaded transaction to expand the view.
4. Review the Matching records found in QuickBooks. This is the possible matching transaction you already entered in QuickBooks.
5. Select the link next to each match to get more details.
6. Make sure this is the correct match. In particular, review the Deposit to, Payment method, and Bank account fields on forms for the existing transaction in QuickBooks.
7. If this is the correct match, close the open transaction.
8. Select Match.

Once done, QuickBooks now knows the downloaded transaction is the same one you already entered. It connects the two so there are no duplicates.

For more details about recording bank deposits and categorize your downloaded banking transactions, you can check out these articles: 

• Record and make Bank Deposits in QuickBooks Online
• Assign, categorize, edit, and add your downloaded banking transactions

Also, it's a great idea to reconcile your account monthly. This ensures your account in QBO matches your bank statement. To learn more about this process, visit this article: Reconciling An Account.

Additionally, if you encounter banking errors, please check out this article for some troubleshooting steps: Fix online banking errors in QuickBooks Online.

Should you need any additional assistance while managing your bank transactions, you can leave a comment below. I'll be sure to get back to you.

Thank you!

Finally I got it! Do I still need to do Step 3 mentioned above? The credit is showing under the vendor now, is there a reason to still do bill pay?

Thank you!!!!!

oh no! Now my downloaded bank has 2 transactions to match.....

Ok, the refund was made to Venmo, which is a synched bank. So from venmo, there's 2 transactions...one is the refund, and there's another which is the transfer from Venmo to Chase. In Chase, there's one transaction which is the transfer from Venmo. So to match the transfer from Venmo makes sense....why is there another match to a bank deposit? which is what I've entered with the advise here. What do I do now? Thank you.

Glad to see you again, @flyingdogcoco1.

Yes, you'll need to record a Pay bill transaction even though you're not paying for a bill. This is done to zero out the balance from the payment and the deposit that has been processed. It should show a zero amount when you check the Transaction list of the specific bill.

Here are some screenshots about the process:

You can also create a Check transaction instead of using the Pay Bills option. I've added an article for your additional reference: Enter a refund from a vendor.

When you're done doing the processes above, you can match the transaction on the Banking page appropriately, in your case, there should be two transactions recorded about the specific Bill. The first transaction is about the payment and the second one is the vendor's deposit to your account. You may read through this article for more details on how to match it: Categorize and match online bank transactions in QuickBooks Online. 

You're always welcome to tag my name in the comment section if you have other questions and concerns. I'd be glad to assist you further. Enjoy the rest of your day!

@MarsStephanieL  Thanks for your reply.

I am stuck. I've created the bank deposit but pay bill does not recognize it. Please see screenshot. Thanks

@MarsStephanieL  here's the bank deposit screenshot...I can only attach one file at a time.

Welcome back, @flyingdogcoco1.

You'll want to make sure that the bank deposit you created is associated with the Accounts Payable account. This way, it will show on the pay bills window. 

Once you finished modifying your bank deposit, you can now connect it to the vendor credit using Pay Bills. Here's how:

1. Click the + New button, then select Pay Bills.
2. Select the bank deposit you created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
3. Hit Save and close.

I'm adding this article for more guidance: Use Pay Bills to connect the bank deposit to the vendor credit.

Just in case you want to learn how to match transactions in QuickBooks Online, feel free to check out this article: Match online bank transactions.

Keep in touch if you need any more assistance with this, or there's something else I can do for you. I've got your back. Have a good day.

I believe I have it right....but when I go to the vendor to see all the transactions, it shows 2 lines of the refund, so the total is a negative number. There are 3 lines:

1. Bill payment total $0

2. Deposit total -$100

3. Vendor Credit -$100

please advise 

Good evening, @flyingdogcoco1.

Thanks for following up with us. I hope you're enjoying your Friday so far. I'm happy to provide additional insight into your vendor refund. 

To best assist with this concern, I need to sort a couple of things out. Are these the ones that need to be connected, or is this after you've connected the deposit and bill payment? Knowing these key details will help me to lead you on the right path. My goal is to get you back to business every step of the way. 

I'll be sure to keep an eye out for your response. I look forward to chatting with you soon. Take care and have a wonderful day ahead! 

@Tori B 

Thank you for your reply.

This is after I've connected deposit and bill payment.

Just a recap....I did the following:

1. vendor credit

2. bank deposit (accounts payable)

3. expense (attached the deposit and the credit) with $0 expense

4. bank for review and synced the deposit

And to check, I went to the vendor's report, it has 3 lines for this transaction:

1. Bill payment $0

2. Deposit -$100

3. Vendor Credit -$100

So, the total line for this vendor is now $100 less than what's actually paid to them in total. It should only show one -$100?

Please advise and thank you!

Thanks for sharing the steps you've performed, flyingdogcoco1.

I read all the responses and all the possible steps have already been shared to resolve the issue. I'd suggest reaching out to our QuickBooks Support Team for further investigation.

Here's how:

1. Click the Help (?) icon at the top.
2. On the Assistant tab, click Talk to a human.
3. Enter your issue or question on the Type something field, then click the send icon.
4. Choose I still need a human.
5. Select Get help from a human.
6. You can either select the Chat with us or Have us call you option.

I've also added an article that will help you review your downloaded bank transactions in QuickBooks: Categorize and Match Online Bank Transactions.

In case you'll need assistance in dealing with your vendor refunds, don't hesitate to get back to this thread. We're always here to help you.