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M
michelle_macinc-mi_com
January 10, 2019
Solved

Refund From Vendor For Overpayment

  • January 10, 2019
  • 4 replies
  • 30 views

Two invoices were overpayed and my vendor submitted a refund check. How do I enter that refund so that it offsets the overpayment? 

Best answer by Rustler

deposit the check and use accounts payable as the source account for the deposit, use the vendor name too

 

bring up pay bills, select the bill that the deposit created and apply the vendor credits, save

4 replies

Rustler
RustlerAnswer
Level 15
January 10, 2019

deposit the check and use accounts payable as the source account for the deposit, use the vendor name too

 

bring up pay bills, select the bill that the deposit created and apply the vendor credits, save

    E
    eas22487
    May 29, 2019

    What do I do if no credits are there to apply?

    C
    Catherine_B
    Level 9
    May 29, 2019

    We can run the Open Balance vendor report to see if there's an unapplied credit or overpayment, eas22487. 

     

    In the Vendor Center, right-click on the vendor's name and select Open Balance: (Vendor's Name). If the unapplied credit is showing on the report and doesn't show when applying credit, there might be a data damage. Let's run the verify rebuild data utility to fix this. 

     

    However, if it didn't show on the report, we can open the Bill Payment to delete and then recreate. The credit should now show on the Apply Credits window. 

     

    Let me know if you need more help with applying vendor refunds or credit. I'm here to help you!

    B
    bjd90
    January 25, 2022

    If you already have the bill and the original payment entered into QuickBooks as I had, it seems easier to not to delete the original bill.

     

    Go to: Banking/Make Deposits

    Enter Vendor name.  Use the Accounts Payable account associated with the bill.  Unless you use more than one A/P account, it will probably be just Accounts Payable.

    Deposit check.

     

    Go to Vendors/Pay Bills.

    You will see a new bill in the list that has been created by your deposit.

    Select bill, click 'Apply Credits', and apply credit to bill created by your deposit.

     

    In my case, the original bill and the refund happened in different reporting periods. 

    K
    Kelleen3
    February 28, 2022

    I do not have the option to choose Accounts Payable to apply the refund to.  I also cannot add Accounts Payable or Office Expense.  Please help! I do not know what to do at this point, all the various methods described online say to apply to accounts payable, which I cannot do.

    C
    Carneil_C
    Level 6
    February 28, 2022

    Thanks for dropping by the Community, @Kelleen3. Allow me to chime in and help you with sorting this issue with QuickBooks Desktop.

     

    Accounts Payable can also be applied to checks and deposits.

     

    Please see this sample screenshot for reference:


     

    Otherwise, users may experience discrepancies in their company files as a result of data damage. You can use the Verify and Rebuild tools to get this resolved. Also, please ensure that your QuickBooks Desktop is updated.

     

    Here’s how:

    1. Go to Window, then Close All.
    2. From the File menu, click Utilities.
    3. Select Rebuild Data.
    4. Follow the on-screen instructions to back up your data.
    5. When the tool finishes, select OK.
    6. Go to the File menu, then click Utilities.
    7. Click Verify Data, then select Rebuild Now once QuickBooks finds an issue with your company file.

    Furthermore, I'm also adding this article for more troubleshooting steps: Fix data damage on your QuickBooks Desktop company file.

     

    I’ll also provide this link to guide you further on how to record vendor refunds in QBDT.

     

    In addition, you can refer to this article for a complete list of workflows and other vendor-related transactions in QBDT. 

    Keep me posted if you still have questions or concerns with managing your transactions in QBDT. I'll be around for you. Have a great day!

    T
    Twhitt
    March 5, 2023

    All of my medical expenses were paid to this vendor in 2022.  I received an overpayment refund check in January 2023.  I need instructions that will show (1) a deposit to the bank, (2) the P&L for 2023 to show a negative amount for that refund (it is the only medical expense recorded this year so far), and (3) I would like the bank to be debited. I am using an old desktop version: Premier Retail 2007

    Thank you.

    T
    Twhitt
    March 5, 2023

    Ignore my question.  I deleted it all and just did a JE debiting the bank and crediting the medical expense account, and put the vendor name in the bank debit column.  Worked perfectly.  It shows the refund in the bank, on the P&L and in the vendor history.

      K
      Kurt_MQuickBooks Team
      QuickBooks Team
      March 30, 2023

      I appreciate you for joining the thread, @ABCCO.

       

      Please know that you can't create a bill through the deposit. Instead, you can use the deposit as a credit and then apply it to your bill transaction to settle it. If you're referring to this process, I'll gladly input the steps below to get you going. To begin, here's how:

       

      1. Access your QuickBooks Desktop company.
      2. Go to the Banking menu, and then select Make Deposits.
      3. In the Received From section, choose the correct vendor.
      4. In the From Account section, select Accounts Payable.
      5. Enter the Amount, and then click the Save & Close button.

       

      If you don't have an existing bill, you'll want to create one. See this page for further guidelines: Enter bills in QuickBooks Desktop.

       

      Once done, click the Pay bills button inside the bill you created, and then select the deposit you made earlier. You'll then click the Set Credits button below and choose your deposit. Click Done to apply.

       

      Additionally, you can also check this page to help you manage your bills inside QBDT: Pay bills in QuickBooks Desktop.

       

      @ABCCO, I'll be here in the Community space if you need further assistance accomplishing this task. Please don't hesitate to leave a comment below. I'll get back to you right away. Stay safe! 

      T
      Twhitt
      March 30, 2023

      Kurt

      Your answer is absurd! The guy got a refund check.  You deposit it.  You do not issue a credit memo against it to apply to the next bill.  You do not create an invoice to use it up.  He overpaid the vendor.  He already paid the original bill but wrote the check for too much money and they reimbursed him.  You simply make a journal entry as I've posted.  Why in the world would you EVER make an invoice against money you already paid an invoice on but over paid it? That's really bad accounting.

       

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