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How to enter Vendor refund to credit card on outstanding credit memo

Forum|Forum|7 years ago
December 11, 2018
3 replies
3 views

We entered a bill for a vendor invoice that was prepaid with a credit card. We then were issued a credit from the supplier for overcharged freight and we entered that as a credit memo. The supplier then refunded the amount of the credit to our credit card.

How do we we handle this in QB? There's an outstanding credit memo on the vendor account and we need to somehow apply the refund to the credit card and the credit memo. When we pull up the Vendor Information screen it shows in the "type' column that the credit was a "bill refund" applied to A/P.

QuickBooks Desktop

Best answer by SkinnyRaven

Use enter credit card charges/credit instead of enter bills/credit.

Enter Credit Card Charge Refund/Credit: Go to Banking > Enter Credit Card Charges. Select the Refund/Credit radio button and enter the receipt that you have for the refund. This transaction should be a mirror-image of the original purchase, meaning that you select the same expense / asset accounts and have the same tax codes and amounts.

S

SkinnyRavenAnswer

Level 6

Use enter credit card charges/credit instead of enter bills/credit.

Enter Credit Card Charge Refund/Credit: Go to Banking > Enter Credit Card Charges. Select the Refund/Credit radio button and enter the receipt that you have for the refund. This transaction should be a mirror-image of the original purchase, meaning that you select the same expense / asset accounts and have the same tax codes and amounts.

V

Vitan

Does this apply to Quickbooks Online?

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lin_jcaj

Level 9

Who should be the payee if it went back to our company credit card? Do we need to make ourselves a vendor? New to QB thanks!

Good day, ccrownoble. Thanks for choosing QuickBooks Online as your accounting software. I can help you share information on how to handle this matter.

You'll have to choose the vendor as to whom the refund came out.

I encourage you to check out these articles that contain about handling vendor credits and refunds in QBO:

Also, you can visit our Help article page for tips and video tutorials to learn your way around QuickBooks.

You can visit us here anytime if you have any additional concerns about refunds. I'll be sure to help.

Rustler

Level 15

@ Mac
Since you have the credit in a/p

use enter CC charges, top left set to a credit
on the expense tab select accounts payable and on that same line in the name column select the vendor name

bring up pay bills, there will be a "bill" as a result of the CC entry, select it click apply credits, pay the "bill"

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mac2itAuthor

Thanks. We did this as you describe and now there are two transactions in the pay bills window. There is one for $30 and one for $-30. Is this the way it should be? If so is the correct thing to do now select them both and click "ok" to cancel each other out or??

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Billcpa1

In addition, you can simply create the credit in the vendor section of QB and then on the "Expenses" tab (if you are tracking inventory. If not then stay on that tab and go to the next line) in the "Account" drop down, select the CC account that the credit was issued to and reverse the amount of the credit (negative amount). The credit total will show as a "zero" total, but the CC register will show a deposit that you can use to match up with your CC statement.

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