I received a refund check from the vendor and put through as a deposit. Now i'm left with invoices and credits on their account that I need to wipe off. How do I do this? Do I put through a journal entry?
Hi there, @SharonDFC.
There are recommended steps to record a refund in QuickBooks. After depositing the refund amount, let’s record a bill credit and link the deposit.
By doing so, the invoice and the vendor's credit will write off.
First, record a Bill Credit for the refunded amount:
- From the Vendors menu, select Enter Bills.
- Select the Credit radio button to account for the return of goods.
- Enter the Vendor name.
- Click the Expenses tab and enter the Accounts on the original Bill.
- In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
- Click Save and Close.
Then, let’s link the deposit to the Bill Credit:
- To link the deposit to the Bill Credit, you'll need to select Pay Bills from the Vendor menu.
- Check the Deposit that matches the Vendor check amount.
- Select Set Credits and apply the Bill Credit you created earlier, then click Done.
- Click Pay Selected Bills then Done.
More ways to record vendor credits are found in this reference: Record a vendor refund in QuickBooks Desktop
Drop me a reply below if you need further assistance in QuickBooks Desktop.