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trixobird
Level 1

Record a vendor refund

There are many posts out there about vendor refund in quickbooks online, but *all* of them include supplier credit, something that most of us don't have since we are on the low tier. 

 

My scenario the vendor has already refund me directly in my bank account. I need to categorize this income. Help me?

Solved
Best answer December 23, 2022

Best Answers
KlentB
Moderator

Record a vendor refund

I'll be more than happy to assist you with your concern, trixobird.

 

We can simply create a bank deposit in QuickBooks Online to account for the refund you received from your vendor. Here's how to do it:

 

  1. Click the + New button.
  2. Choose Bank Deposit.
  3. Go to the Add funds to this deposit section.
  4. Enter the reimbursed amount and choose the appropriate account.
  5. Add a memo as needed, then click Save and close.

 

Bank Deposit.png

 

To learn more about handling supplier credits, feel free to read this article: Enter vendor refunds in QBO.

 

If you need more help in accomplishing your other tasks, please let me know by adding a comment below. I'll always have your back. Happy Holidays, trixobird!

View solution in original post

11 Comments 11
KlentB
Moderator

Record a vendor refund

I'll be more than happy to assist you with your concern, trixobird.

 

We can simply create a bank deposit in QuickBooks Online to account for the refund you received from your vendor. Here's how to do it:

 

  1. Click the + New button.
  2. Choose Bank Deposit.
  3. Go to the Add funds to this deposit section.
  4. Enter the reimbursed amount and choose the appropriate account.
  5. Add a memo as needed, then click Save and close.

 

Bank Deposit.png

 

To learn more about handling supplier credits, feel free to read this article: Enter vendor refunds in QBO.

 

If you need more help in accomplishing your other tasks, please let me know by adding a comment below. I'll always have your back. Happy Holidays, trixobird!

Business Angels
Level 1

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? 

DHeraV
Moderator

Record a vendor refund

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.

JEM-SY
Level 1

Record a vendor refund

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

AileneA
QuickBooks Team

Record a vendor refund

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.

sylvieOC27
Level 1

Record a vendor refund

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!

MUNOZPLASTERINGLLC
Level 1

Record a vendor refund

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.

Adrian_A
Moderator

Record a vendor refund

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.

MUNOZPLASTERINGLLC
Level 1

Record a vendor refund

MUNOZPLASTERINGLLC_0-1703807643417.png

 

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. Some of the other refunds matched when I followed the steps to bank deposit. 

  1. Click the + New button.
  2. Choose Bank Deposit.
  3. Go to the Add funds to this deposit section.
  4. Enter the reimbursed amount and choose the appropriate account.
  5. Add a memo as needed, then click Save and close.
 
 
jpajunen
Level 2

Record a vendor refund

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...

AlverMarkT
QuickBooks Team

Record a vendor refund

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 AmountTax, 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.

 

Match CC transaction.png

 

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.

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