I have already paid a bill and entered this into QB. i then took the goods back to the supplier who refunded the funds in my bank account. How do I enter this in QB?

Hello there, Ross. To properly record a supplier refund in QuickBooks Online. There are three steps you’ll need to follow. Each step ensures that your financial records are updated correctly. First, you’ll create a supplier credit to reflect the refunded amount. Next, record the refund as a bank deposit. Lastly, apply the supplier credit to a bill to maintain accurate expense tracking.

1. Select + Create, then choose Supplier credit.
2. In the Supplier dropdown, choose the supplier.
3. Enter the Category details or Item details (the product, service, or category for the credit).
4. Click Save and close.

Now that you’ve created the supplier credit, the next step is to record the refund deposited into your bank account. Here’s how:
 

1. In the + Create, select Bank deposit.
2. Choose the bank account receiving the refund.
3. Under Add funds to this deposit, fill in:

• Received from: Select the supplier.
• Account: Choose Accounts Payable.
• Payment method: Enter the method of refund.
• Amount: Enter the refund.

     4. Click Save and close.
 

After recording the supplier credit. Apply the credit to a bill to keep your records accurate. Here’s how:
 

1. Select + Create, then Pay bills.
2. Select the bank deposit you created earlier. The supplier credit will display in the Credit Applied field.
3. Ensure the Total Payment is R0.00.
4. Hit Save and close.

If you have any further questions or need assistance with QuickBooks, feel free to click the Reply button.