Vendor credit messing up report amounts

It sounds like your bank deposit was extra. You would just match the credit against the bill once when processing bill pay.

-Lubov

A/Z Bookkeeping

www.atozbookkeeping.us

Thank you Lubov.

I new something wasn't right. I deleted all the bill pay and the deposits and then re-added the deposits once directly through the bank account. Do I need to use bill pay now to match the two or is there another way to match the transactions?

Here is an updated report.

Hello A PUNK,

The process you mentioned earlier is correct when recording the refunds. 

1. Create a vendor credit.
2. Create a bank deposit.
3. Create a bill payment to link the two transactions (vendor credit and bank deposit).

When you create the bank deposit, make sure you selected the correct accounts:

1. Open the bank deposit you created earlier.
2. Make sure you entered the correct bank account in the Account field.
3. Select the vendor in the RECEIVED FROM column.
4. Select Accounts Payable in the ACCOUNT field.
5. Make sure the amount is the as the vendor credit.
6. Click Save and close. 
7. Select Yes to confirm the changes.

When you create a bill payment to link the vendor credit and the bank deposit, make sure the TOTAL PAYMENT AMOUNT is zero ($0.00).

1. Click the + New button and select Pay bills.
2. Click the Filter button and enter the vendor name in the Payee field.
3. Click Apply and enter the other details (Payment account, Payment date, and etc.).
4. Mark the transaction you want to pay. The CREDIT APPLIED should be the same as the OPEN BALANCE.
5. The PAYMENT field should be zero ($0.00).
6. Click Save.

This will not cause any duplicate transactions since we are only offsetting the vendor credit and the bank deposit through the bill payment.

After that, the report will show you the correct information. You might also want to browse these links to know more about vendor credits: 

• Enter a credit from a vendor

• Applying vendor credits

Keep us posted if you require additional help.

Hello James,

So simply adding the deposit from the bank account is not enough? I am currently getting correct reports for the vendor although the vendor total is higher because the deposit is not reflected in the expense table.

I'm here to clear things out for you, A PUNK.

We created the bank deposit to record in QuickBooks that you've received the amount. Then, you used the A/P account so you can tie the refund to the vendor credit. The vendor credit you've created is used to decrease the quantity on hand of the items you're returning. 

To offset/link the vendor credit and bank deposit, we'll have to create an expense, check, or bill payment. You can follow the steps below:

1. Click the + New button.
2. Select Expense or Check.
3. In the Vendor drop-down menu, select the appropriate vendor.
4. Under Add to Check/Expense, add the Vendor Credit.
5. Hit Save and close.

If you wish to do it using a bill payment, you can follow the steps above provided by my colleague JamesDuanT.
 

Doing this process won't generate any duplicate transactions since we're only linking the vendor credit to the bank deposit through a check, expense, or bill payment. 

I encourage you to check this article to learn more about how to record a refund from a vendor in QuickBooks Online: Enter a refund from a vendor.

I'm just a few clicks away if you have further questions about how refunds work QuickBooks. You can always tag me in your comments.

I think I understand. I am fine with using the bill method. 

So you're saying that even though there is a vendor credit (creating a -60.00 in the vendor expense table) and a deposit (also creating a -60.00 in the vendor expense table) that since they are in 2 separate categories (i.e. payroll invoice and accounts payable) that the report and actual expenses will work out correctly even though the "total" at the bottom of the vendor table is off because of the doubled credit from the VC and the deposit?

Yes, you're understanding it right, A PUNK. Let me ease your confusion.

We create a vendor credit to add back the inventory item to the stock. While the deposit is created to show the funds are returned to the bank.

Just as long as the vendor's open balance at the top right corner is correct, then everything is good. 

We're just here to help you out if you have other concerns. Feel free to let us know. 

Thank you for confirming Kristine.