Record a vendor refund

I overpaid a vendor. This solution doesn't get rid of the credit on the vendor account. How do I get the vendor account to record the refund check so that the vendor balance is 0? 

Thank you for chiming in on this thread.

Let me guide you on how to zero out the vendor balance in QuickBooks Online (QBO). Once you have recorded the refund as a deposit, you can then link this to the vendor credit. Here's how:
 

1. In your QBO account, click on the +New icon, then select Expense or Check.
2. In the Choose a payee drop-down, select the vendor name.
3. Leave the Reference / Check #, Date, Amount, and Memo fields blank.
4. From the Add to Expense or Add to Check section, select Add for the outstanding vendor credit and deposit.
5. Select Save and close.

For detailed information, kindly visit: Enter vendor credits and refunds in QuickBooks Online.

Moreover, I'll also share this link where you can search for articles that can serve as your reference to guide you manage your suppliers: QuickBooks Online Help Articles for Expenses and Vendors.

Feel free to leave a reply if you require further assistance with managing vendor refunds in QBO. The Community team always has your back. Have a good one.

I tried this. You cannot add the vendor credit to the expense unless there is an offsetting open bill.

Hello, JEM-SY. 

Yes, you're correct, that's how it works. The vendor credit won't be added without any open bill. Thank you, and I appreciate your feedback.

You'll want to check this article about managing the bills and their payments in QBO: Enter and manage bills and bill payments in QuickBooks Online.

If you need to run particular reports for your vendor, please refer to this article for guidance on how to run and customize the report: Customize vendor reports.

Please let me know if there's anything else I can do for you. I'll be standing by for your response. Take care.

You received a check from a vendor because you double paid an invoice and you want to record the refund in the vendor's account.  First, create a vendor credit as described above.  Then you have add a Bank Deposit as described above - BUT for the account, select Accounts Payable and the correct vendor.

Now, go to "Check", select your vendor, and you should be able to add both transactions and clear it out - the vendor credit connects to the A/P transaction.  And save!

I followed the instructions you had below. I'm still having trouble categorizing my refunds off my bank feed  since I already received my refunds from my vendors.

Hi MUNOZPLASTERINGLLC,

I want to ensure the issue about categorizing bank transactions gets resolved in no time.

With that, can you share what issue you encountered when categorizing the transactions?

I'll keep an eye on your response.

What if it is not a bank deposit and instead Credit Card refund?

I can create Credit Card refund, but unable to "Check" to clear Vendor Credit.

Time to move to Zoho...

I appreciate you for joining this thread, @jpajunen. I'm here to help.

Suppose it's a Credit Card Credit instead of a Bank Deposit to record vendor refunds on a Credit Card (CC), we won't need to clear it using a check since it's posted directly to the CC account register and isn't stored as a vendor credit. I'd be glad to discuss more about this in detail and help record a credit card vendor refund.

If you haven't created a Credit Card Credit, you can follow these steps to create one:

1. Select + New in your QuickBooks Online (QBO) account.
2. Choose Credit card credit.
3. In the Payee field, select the appropriate vendor.
4. From the Bank/Credit account dropdown, select the credit card for which you received the refund.
5. Enter the Payment date, refund Amount, Tax, and Category.
6. The category used here is the original expense account on the original bill.
7. Review other details. Then, hit Save and close.

Once done, match it to the downloaded CC transaction on the Bank transactions page. You can follow these steps:

1. Go to the Bank transactions
2. Select the blue tile for the CC account where the downloaded CC transaction is.
3. Find the CC transaction and click on Match.
4. If you can't find a corresponding match, choose Find other matches. Then, Match.

I've added a screenshot for visual reference.

For future reference, I'm adding this article as a reference in reconciling your accounts in QBO: Reconcile an account in QuickBooks Online.

We'll be here in the Community if you have additional questions about recording vendor refunds in QBO. We'll do our best to assist. Take care.

Hello,

I followed the directions you provided, but when I applied the deposited refund to the vendor credit, it actually doubled the credit balance on the vendor account. It did not return the balance to zero. Might you please provide some guidance on this? Thank you. 

I'd gladly assist you with recording your bank deposit and linking the Vendor Credit and Bank Deposit, Timothy.

As for the doubling of vendor credit, it's possible that the vendor credit and the refund deposit are not linked correctly, and another vendor credit was entered more than once. To rectify this, run the Vendor Balance Detail to know which vendor credit will be deleted.  

Here's how:

1. Go to the Reports menu, then open Vendor Balance Detail.
2. Click the amount to verify which vendor credit is correct.
3. It will route you to the Vendor Credit window. If it is incorrect click More and then Delete.

After running the Vendor Balance Detail Report, find the recorded Bank Deposit for the vendor refund. Then, ensure that it's associated with the correct vendor and is posted
to Accounts Payable.



Once done, link the Vendor Credit and Bank Deposit. I'll show you how the steps below.

1. Go to + New button and click Check.
2. Choose the vendor Payee from the dropdown ▼.
3. Select the Bank Account to use.
4. On the right sidebar, an Add to Check pop-up will appear. Click Add, then hit Save and Close.
   
   

If you need to manage your business expenses record, you can refer to this article: Enter and manage bills and bill payments in QuickBooks Online.

Feel free to leave a comment on this thread if you have more concerns about vendor credit. We're always here to help you.

This is exactly how QBO support goes. It's a simple F*kn question. I overpaid a vendor and I need to clear it with a refund check. Every answer except the one needed is provided...

Oh, and pay us $100/mo more for the next tier and the function is included. Such horsesh!t.

I have the same problem and no solution is provided. 

I'm just going to use a journal entry to record the cash and the expense account that should be cleared. Deleting the vendor credit I issued for the overpayment. Not clean, but at least my books are correct. 

If anyone at Intuit reads these posts, this is another example of why I will cancel this software as soon as Zoho has Colorado payroll ready to go. You suck.