how do i enter a refund from a supplier?

Hi Ellie22,

Welcome to the community!

You are correct - to show a refund from a supplier you would create a bank deposit to reflect the money returned back to the bank.

On the bank deposit, select the date and bank account, and under 'Add funds to this deposit' choose the supplier under 'Recieved from', the Accounts payable account under 'Account' and enter the amount.

The Accounts Payable account is a default account created by QuickBooks when generating a supplier transaction, you may alternatively see it named as 'Creditors'. You will  need to find the AP account QuickBooks automatically posts to and use this on the bank deposit. You can see this by going to the Chart of accounts and searching 'Creditors'. The type and details type of this will show as 'Creditors' here. 

For full details on recording a supplier refund you can follow the steps below: 

1. Create a supplier credit (+ icon -> supplier credit​)

2. Choose the correct date and supplier, put in the amount, choose VAT

3. Then click on the + icon again, and choose Bank Deposit, to show that the money went into your bank account

4. Choose the correct bank account on the top left corner, choose the date when the money actually hit your account

5. For Received from choose the correct supplier, for the account choose Creditors, put the amount in, choose no VAT

6. On the Supplier's page create cheque 

7. Tick the deposit against the supplier credit (this shows QuickBooks, that the supplier credit has been used, and money was received from the supplier), untick the bill and save and close

Thanks!

Thank you ever so much for that! Just one question I'm now stuck on, when doing the bank deposit i clicked NO VAT as stated, and below it comes up with "cash back goes to", "cash back memo" and "cash back amount". Does this have to be filled in? thank you 

Hi Ellie22

It is not necessary to enter any details in these fields.

Thanks ever so much. I've done both of the steps, the refund and purchase is showing on the bank feed what do i now do with both of these transactions? Sorry !

Hello Ellie22,

Add the purchase as an expense to the same account you are using in the refund. The refund amount should then match to the bank deposit you created, if it is not showing as match automatically select the transaction and 'find match' - the deposit should then show on the list of open transactions.

Thanks,

Talia

I'm currently having this same issue. I received a refund of $50.99 to my bank account from Amazon for a purchase I made prior (the refund  amount was not the same as the expense amount because the expense was for various products/items and I only returned one of them).

I followed the steps mentioned to create a bank deposit and match it to the transaction of $50.99 coming into my account in the bank feed. However, when I go the the vender/supplier page, this amount of $50.00 shows at open and overdue. What should I do now?

I tried creating a "dbt refund" category in the chart of accounts but there no detail type for any account (expense or income) that matches this kind of transaction.  

Let me help you correct your transactions and guide you on how to record them properly, WoodHome.

A generous return policy or refund makes it easier for customers to buy with peace of mind that they won't get stuck with something that can't be used. Typically, the most common causes of purchase returns are unmet expectations, damaged or defective products, and incorrect fit. 

Instead of matching the deposit to your transaction, you can exclude the refund amount from your bank feed, then edit the bank deposit you've created. Below are the steps for the detailed process.

To exclude a downloaded transaction:

1. Go to the Banking menu on the left panel.
2. Select Banking.
3. Select the For Review tab.
   
4. Select the checkbox of the transactions to exclude.
5. Select Exclude.

To edit deposit:

1. Go to the Gear icon and select Chart of Accounts.
2. Find the bank account where the deposit is associated. Then, click Account History.
3. Locate and select the deposit transaction and click Edit. Make sure that 50.00 goes to the Creditors' account while you can choose an account where you like for the 0.99 to post.
   
   
   
   
4. Make other necessary changes you want and select Save and close.

Once done, you can now pay the bill and ensure to choose the deposit and bill transactions. I've added a screenshot for your reference:

Moreover, to make sure that you have the complete picture of your business cash flow, check out this article for reference: Reconcile An Account In QuickBooks Online.

Let me know if you have any questions when entering refunds. The Community is always here to get you covered.