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.