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joann1
Level 1

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

We purchased an item from Home Depot with a credit card.  We later returned the item and Home Depot refunded the money with an in store credit/gift card.  I also need to record items purchased with this gift card.

Solved
Best answer October 15, 2018

Best Answers
vpcontroller
Level 11

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

You will need to use "Credit Card Credit" (create + sign > Vendors > Credit Card Credit) as designated form in QBO, to handle return with gift card transaction.

  • Select Vendor = Home Depot
  • Add New Home Depot Gift Card (as Credit Card type) > notice once added new balance should show zero
  • Account = same account originally used when entered for purchased items
  • Amount = gift card store credit amount
  • Save > notice once saved balance should show negative amount equivalent to store credit
  • Save and Close

When you start using the Gift Card for purchases, go to Expense Form  (create + sign > Vendors > Expense) and select Home Depot Gift Card from drop down list and use it as a form of payment.


Once you start using negative balance should go down.

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19 Comments 19
vpcontroller
Level 11

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

You will need to use "Credit Card Credit" (create + sign > Vendors > Credit Card Credit) as designated form in QBO, to handle return with gift card transaction.

  • Select Vendor = Home Depot
  • Add New Home Depot Gift Card (as Credit Card type) > notice once added new balance should show zero
  • Account = same account originally used when entered for purchased items
  • Amount = gift card store credit amount
  • Save > notice once saved balance should show negative amount equivalent to store credit
  • Save and Close

When you start using the Gift Card for purchases, go to Expense Form  (create + sign > Vendors > Expense) and select Home Depot Gift Card from drop down list and use it as a form of payment.


Once you start using negative balance should go down.

DiamondPower
Level 1

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Could you this be explain to someone who is not an accountant? Beginner.
donlinconstructi
Level 1

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

wait...2 problems for me. I am a Contractor and actually have a Home Depot credit to merchandise card. I do have merchandise card set up as a credit card in chart of accounts. I entered the return in CCC as you explained and saved. In the vendor register, it does not show a negative number after saving, although it does say Credit Card Credit. When I create a new expense, add Vendor and choose the merchandise credit card, I can see previous credit card credits and deposits in the window on the right, BUT NOT THE ONE I JUST ENTERED? Wondering why? Help
christyprid
Level 1

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

I did this and used my gift card account to pay the vendor that account went down but the vendor account just shows the orignal amount of credit credit card Ex=$100.00 (was never a  negative # (-$100.00) in vendor tranactions
MontanaKarl
Level 3

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Store credit / gift cards are best treated as their own bank or credit card account (or cash account).  This case of a return is special, in that you need to enter a transaction for the opening balance that is basically a deposit (if you use a bank account) or a credit (if you prefer the interface for a credit card) - and which reverses the expense of the originally charged item.  E.g., if the returned item was for expense account "Tools", then the deposit would refer to "Tools" and the memo list the returned item (perhaps even attach a copy of the receipt as an attachment).

Then, just enter purchases against the balance as electronic checks (e.g.) if you used a bank account, or as a charge if you called the gift card/store credit a 'credit card' account.

Because gift cards / store credits can only be used at specific stores, it is best to create a different account for each store involved in order to track them.  My view anyway.

seswende
Level 2

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

We have reloadable gift/Visa cards for our employees to use, and also track costs charged to each Job.  When I record a credit like this, it is essentially a deposit, but the deposit screen doesn't give the option to reduce the cost charged to that specific Job.  How can I do this to reduce the job cost?

Rose-A
Moderator

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Hi, seswende.

 

Could you please tell me which amount are you trying to reduce? Is it the cost or the credit amount?

 

This way I'll be able to provide you with the right issue resolution and ensure that your questions are addressed accordingly.

 

I look forward to your reply. I'm always here to lend a hand.

seswende
Level 2

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

I know how to post the credit return against the reloadable Visa gift card, which I have set up like a Cash/bank account.  But it seems to take multiple steps, and I was hoping to reduce the number of steps.  I record the Deposit of the credit back to the gift card, then record a credit transaction from the vendor, then tie the credit to the vendor bill credit, but I'd like to do it in less steps.  That just doesn't seem possible unless there's another way I don't know.

seswende
Level 2

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

I am trying to post the credit back to the Job cost so it reduces the cost of the job.  I can't do that with just the Deposit entry because it doesn't give the option to post the credit against the related job.  I found an answer on another thread, which takes three steps.  It says to record the Deposit of the vendor credit against the reloadable Visa card, which is set up like a bank account.  Then I have to record a credit transaction from the Vendor, then tie the deposit to the credit as if I was paying a bill and applying the credit on that screen.  That screen does allow me to apply the credit back to the job.  But I'd like to do this with one step, and I can't figure out if that is possible.

Joshua R
QuickBooks Team

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Thank you for joining us here in the Community, @seswende.

 

The option to record the credit with one step isn't currently available in QuickBooks Online. I can certainly submit feedback for you to our product developers for it to be a possible option with future updates. For information on future updates coming to QuickBooks Online, you can take a peek at The QuickBooks Blog

 

If you run into any bumps in the road and need assistance with anything else, I'm only a reply away.

seswende
Level 2

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Thank you, but I dont have QB online, I use 2017 Desktop Premier.

seswende
Level 2

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Thank you, but I don't use online, I use Desktop Premier, currently 2017 version.

JamesDuanT
Moderator

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Hello seswende, 

 

We know that the process to record the credit returns requires the steps you've mentioned above. You might want to reach out to your accountant about it. They can share some practices that'll make this process easier.

 

Meanwhile, we'll share your feedback so our Product Development Team will put it into consideration for product updates. 

 

Your ideas would help us know where to focus the product enhancements to suit your business needs.

Goldie34
Level 1

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

How is this done in QB desktop?

CBM Rentals
Level 2

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

We have a company credit card.  We charge a variety of things like utilities, purchases at stores like Lowes, Home Depot, etc on it.  We purchased an item (stove) at Lowe's.  I simply wrote a check to the credit card company and had all the charges allocated to the correct accounts.  A month later, stove was returned.  I don't really want to create a bill - too much extra work.  The stove that was returned created a negative balance on my next credit card statement so even though there are charges on the next month's statement, no amount was due.  But I still need to allocate those charges into the proper accounts.  How would we do this?

CharleneMaeF
QuickBooks Team

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

I know it can be rough when you have a negative balance, CBM Rentals. I'm here to help you with that.

 

We can create a Credit card credit in QuickBooks Online to track the amount for the returned item (stove). I'll show you how:

  1. Go to the +New button.
  2. Select Credit card credit.
  3. Choose the payee.
  4. In the Bank/Credit account field, select the credit card account you received the refund.
  5. Select the date in the Payment date section.
  6. In the Category details section, select the same expense account of your original purchase.
  7. Enter the amount.
  8. Click Save and close.

 

To ensure that your bank and credit card transactions are added to the correct accounts, I'd recommend checking out this article for the detailed steps: Categorize and Match Online Bank Transactions.

 

Additionally, I've added these resources that'll help you manage your vendor transactions in QuickBooks Online. This way, you can ensure your record is accurate: 

 

I'm only a post away if you need more help in tracking your vendor transactions. It's always my pleasure to help you out again.

CBM Rentals
Level 2

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

I'm using Desktop Pro 2018.  I don't have a + New.  What is that?

 

Thanks!

SashaMC
Moderator

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Good afternoon,

 

Thanks for sharing the program you use, CBM Rentals. The steps above are for our QuickBooks Online program, but for Desktop here is what to do:

 

  1. From the Banking menu, choose Enter Credit Card Charges.
  2. From the Credit Card ▼ dropdown, select the credit card account.
  3. Since you want to record a credit, select the Refund/Credit instead.
  4. Choose the vendor from the Purchased From ▼ dropdown.
  5. Pick the date.
  6. Select the Expenses or Items tab and enter the expenses/items you want to track.
  7. Click Save & Close.

 

I am leaving this article for you to learn more about setting up, using, and paying credit card accounts.

 

If you require additional support, please do not hesitate to post again. I'm always willing to assist you.

 

 

CBM Rentals
Level 2

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

Thanks!.  I saw how to create in the banking menu a credit card refund.  But it doesn't help my situation.

 

The way I've always paid the credit card, and entered into QB, is to simply write a check.  There may be 15 items on the credit card relating to various properties, so I enter each charge, choose the account (repairs, materials, travel, etc.) and a check is written.  The entry takes the money out of our checking account and allocates the various expenses to the proper property.

 

So creating a Refund/Credit under the banking menu -> credit card, creates a liability on the balance sheet (with a negative number).  Is that corrrect?  It's not a liability.  Its a reversal of a charge.  What we purchased as a stove and paid for it.  So on the check payment in November, the account was a fixed asset.  It would have been depreciated.  Now on the December statement, it was returned.  No money exchanged hands.  It's just a credit on the monthly credit card statement.  How is that handled?

 

Thanks.  I appreciate all your input.

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