We can deposit the vendor credit if no expense has occurred, @leeboy.
Since you're refunded through cash, we can enter a vendor credit first. This ensures that the credit hits the expense account you use for this vendor. I'd be glad to show you how:
- Click+ New and select Vendor credit or Receive Vendor credit.
- In the Vendor dropdown, choose your vendor.
- Enter the Category or Item details depending on how you record purchases with this vendor.
- Usually, this is the category, product, or service you're getting credit for.
- Once done, click Save and Close.
Then, you're now ready to deposit the money you got from the vendor. Here's how:
- Click + New and Bank deposit.
- In the Account dropdown menu, select the account where you got the refund.
- In the Add funds to this deposit section, fill out the following fields:
- Ensure to enter Accounts Payable from the Account field.
- Select Save and Close.
If you're still unsure, you can still reach out to your accountant for more alternatives about this issue.
Moreover, this guide can serve as your reference on recording a credit from a vendor: Enter vendor credits and refunds in QuickBooks Online.
You can post anytime if you still have queries about your vendor credits in QuickBooks Online. Please know the Community has your back. Take care always.
