There are times when we buy a part that we give them back a used part to be refurbished. It not a refund or a parts sale, how do I manage it?

Hello there, @ellen-coppervall.

Thanks for coming by with your concern. I'll be your QuickBooks guide today. 

When returning items and got a refund for a business expense, you'll have to create a vendor credit for that. 

Here's how:

1. Select the + New menu, then select Vendor credit or Receive vendor credit.
2. Select your Vendor in the dropdown list.
3. Enter the Category details or Item details, then click Save and close.

After that, deposit the money you got from the refund. 

Here's how: 

1. Go back to the +New menu, then select Bank deposit.
2. 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. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
• Payment method: Enter the method your vendor used to refund you.
• Amount: Enter the amount of your refund.

Don't forget to Save and close. You can chek out this link to learn more about this process: Enter a refund from a vendor.

For future reference, keep track of your vendor expenses by running a report with Vendor Totals.

See you again on your next post or if you have additional concerns. I'll be here to help you again.  

Hi, @ellen-coppervall.

Hope you’re doing great. I wanted to see how everything is going about returning the items to your vendors concerns. Was it resolved?

Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

@ellen-coppervall 

This sounds like a core charge.  I would record the core charge as an expense and then reduce the expense when you get the credit. 

You are correct it is a core charge and exchange. But we pay the expense and the bank records that whole expense and the exchange credit may be weeks later. Thereby the bank records a separate deposit from this company

The steps outlined to me seemed to work. However, I am not completely confident that it is truly a vendor credit situation. Additionally, I do not understand the steps of the accounts receivable and the pay bills. 

@ellen-coppervall 

When the bank makes the deposit for the credit, assign the core charge expense account to the deposit.  This will reduce the expense you recorded when you were charged the core charge.  This way, if you don't get a credit (for whatever reason), you will be sure to have taken the expense.

Sorry I'm taking a while. Just pondering through Rainflurry's response. If I'm understanding correctly you are saying still put a vendor credit on the parts company (thereby carrying a balance in that account), then enter the Bank Deposit  with the "Received From" the parts company that we exchange the core with? And then is the Payment Method the debit card they put the money back on?