Vendor Credit Memos and Bank Deposits QBO

Hi there, CarsMetrics.

A vendor Credit is used to either record returns to vendors or simply these are refunds from vendors. It seems that there are certain steps that have been missed or certain amounts were incorrectly applied to that's why it is doubling the refund.

First, let's make sure to create a Vendor Credit to post it on the expense account you used for this vendor. Then, deposit the money you got from the refund using a Bank Deposit. Lastly, use the Pay Bills option to connect the bank deposit to the Vendor Credit. 

You can review this article for the detailed steps: Enter A Refund From A Vendor.

Then, you can go to your vendor profile to check for the balance. 

For reference, you'll want to run reports in QuickBooks Online to show the aspects of your business. Here's an article for your guide: Run Reports In QuickBooks Online.

That's it. Feel free to let me know if you need anything else. I'll always make sure to get back to you.

I have attached screenshots of each step right before I click Save & Close. Can you tell me if you spot something out of order?

Thank you for getting back to us here on the Community page, @CarsMetrics.

The screenshots you've added are not visible here on my end. There seems an issue with the files you're adding that the Community server blocked it from presenting here in public. At this time, you can try adding through a private browser to narrow the cause of this unusual experience. Sometimes, the regular browser tends to hold onto information, and over time it could cause problems while working with QuickBooks.

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See if this works

Thanks for getting back to us and providing the screenshots, CarsMetrics.

I want to make sure this is taken care of, so you can get back into the business.

We'll have to recreate the Expense transaction into a Bill so the steps will work when linking it to the Vendor Credit. This will zero out your vendor balance. For more information, check our enter a credit from a vendor for your guide.

Keep me posted on how it goes. I'm always here if you need more help with the process.

I clicked the article and this one applies to me: 

"If you enter expenses or write checks

I clicked the article and this one applies to me: 

"If you enter expenses or write checks

Thanks for coming back, CarsMetrics.

I've read your first post, and thanks for following the steps you've seen in the Community. Creating a Bank Deposit using Accounts Payable (A/P) and tagging the vendor's name is correct to show that the refund came from them. However, you're right that this will result in a credit in their profile. To offset it, you'll also need to create a Vendor Credit and use the same item when you recorded your purchase.

Now, your vendor balance is correct but you have open Bank Deposits and Vendor Credit on your vendor's profile. Therefore, you'll close them by creating an Expense or a Check transaction. To learn more about processing vendor's refund, refer to this article: Enter A Refund From A Vendor.

I have a link here that provides you with articles about managing your vendor transactions: Enter expenses, pay bills, and write checks. 

Keep me posted if you need a hand with running your financial reports or any QuickBooks Online related. I'm always here to help. Take care always.