Refund Check from a Credit Card

It's good to see you here in the Community, @tmeza.

I'd love to help you with your concern about a refund check from a credit card. 

Can you provide additional information about it? What is the connection between the credit to the credit card company and the customer payment? Any further details would help us provide the best resolution on this matter.

Meanwhile, I'll be adding this great Community resource in case you've got other QuickBooks concerns such as setting up payments, managing your income and expenses, running reports, etc. Please refer to this article for more details: Community help articles.

Please know you can continue to reach me here with your additional questions. I'll be standing by for your response. 

Thank you for responding. I am doing the books for a nonprofit btw. 

So last year they were charged a deposit for an event on their credit card. The credit card was paid and amounts allocated. Because of COVID the event was canceled and this year they were refunded the deposit amount. A credit was entered on the expense end. On the credit card that credit amount stayed - for a few months. The amount lessened because new charges were made on the credit card. Just a month ago, the credit card company  zeroed out the credit balance and issued a check. This check was deposited. So in QB I have a -1200 and in the bank account I have a +1200. Do I record a transfer on the bank side? I tried this and the balance sheet looks good BUT what happens to the credit card side because that -1200 is still hanging around? I hope this is sufficient context. 

I appreciate the details that you gave, @tmeza.

It's my priority to help you record the refund that you received in QuickBooks Online.

You'll need to create a vendor credit and link it to the vendor refund check afterward. Know that the refund will be entered using a bank deposit. This will zero out the balance and track your transactions properly.

Here's how to create a Vendor Credit:

1. Go to the + New icon and then select Vendor Credit.
2. Select the vendor name.
3. Enter the necessary information.
4. On the Customer/Project column, select the correct project.
5. Click Save and close.

Then, let's create a Bank Deposit:

1. From the +New icon, select Bank Deposit.
2. In the Account drop-down menu, select the account where you got the refund.
3. In the Add funds to this deposit section, fill out the following fields:
   • Received from: Select the vendor who gave you a refund.
   • Account: Select Accounts Payable to link the refund to the vendor credit. 
   • Payment method: Select Check.
   • Amount: Enter the amount of your refund.
4. Select Save and close.

After that, use Pay Bills to connect the bank deposit to the vendor credit:

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

For more information on how to handle vendor credits and refunds, please see this article: Enter a Refund From a Vendor.

I'm also adding here some links that provides information about managing vendor payments and categorizing your bank transactions in QBO:

• Run a report with vendor totals
• Categorize and match online bank transactions in QuickBooks Online

Please touch base with us here if there's anything else you need, I'm determined to ensure your success. Have a great week!