What is the best way to enter a refund charge on my credit card for items that I returned? In other words, QB sees the charge back on my credit card, it want's me to mark it as "uncatorigized income" etc. How should I mark it so that it is not counted as income or does it matter?
I have been searching on here over and over and all I can see is how to refund back to a vendor or refund back to a client, etc. I purchsed somthing on my credit card, it wasn's what I needed, the credit went on my card and now I need to deal with it.
(Title has been edited by moderator for clarity)
Solved! Go to Solution.
Use the plus menu and enter a credit card credit, select the vendor and the expense account you used for the purchase originally (or the inventory item you returned in the item details part)
then you match the banking download
work flow is enter transactions, download banking, match
I have the same questions but don't completely understand the answer you received. I have quickbooks self-employed online. When I return something that I don't need and it was only a portion of the entire transaction, the credit goes to the same bank card that I used to purchase the item then i am just making a note in the comments section of that transaction that this was a refund for items returned. In another case, I returned the entire purchase so I just excluded both the purchase and the refund transaction but that didn't feel right to me. What have you decided to do lizuare?
I’m here to help clear things out about refunds and credits in QuickBooks Self-Employed (QBSE).
QBSE only tracks business expenses and income for estimated tax calculations. At this time, we don’t have a specific category for refunds and credits.
In this case, you’ll need to categorize the credit as personal or exclude it once it’s downloaded into the system. If the original transaction for the purchase is a downloaded one, you also need to exclude it.
Then, add it back minus the refund amount (since the credit was only a portion of the entire purchase). This is to ensure the tax calculations for the quarter only include the actual amount you spent to purchase the item.
If the transaction was manually entered, you can simply edit the amount. If you return the entire purchase, you’ll need to delete or exclude both the purchase and credit.
Stay in touch with me if you need further information about estimated taxes or categorizing transactions in QBSE.
Even after reading these answers it took me a while to figure this out so in Layman's terms:
Click the + button at top right corner, under Vendors column select "Credit Card Credit'.
In the field labeled 'Choose a payee' you're going to select the company that gave you the refund.
Credit card account is the credit card you received the refund on.
Enter the date that the refund went back on your card.
in Account you want to select the same expense account that you charged the original purchase to.
Description, I just put Refund.
Enter the Amount.
Save and close.
Now go back to your transactions to review and it should be matched up to the CC Credit that you just entered, if not, double check to make sure the payee (vendor), date, account, and amount are all the same.
The problem is this leaves a negative balance on my vendor.
I saw in another posting to simply create an expense to balance the vendor but it's not a real expense and screws up my bookkeeping.
I purchase (cost-of-goods-sold) from vendor. $100 and paid in full with my credit card. I recieved $10 damaged. I get a credit for $10. I need to reduce my cost-of-goods-sold reported to the IRS and I need to apply that credit to that reduction so that my vendor balances to $0.00.
I think I found this can be done in Quickbooks desktop, but there is no Vendor refund (not Vendor Credit used to reduce balance due but vendor refund to reduce cost-of-goods-sold) option in Quickbooks online. Is that correct?
I can help you fix the vendor negative balance, @cipgifts.
You can enter the vendor refund check as a Bank Deposit. You have the option to add funds to the COGS account. I'll show you how:
- Click the Plus icon.
- Choose Bank Deposit.
- Select the Account and enter the date.
- Go to the Add funds to this deposit section.
- On the Receive From column, select the vendor name.
- For the Account field, select the COGS account.
- Enter the $10.00 amount.
- Click Save and close.
After that, you can run the Profit and Loss report to confirm that the COGS account already reduce the $10.00 amount.
- On the left menu, click Reports.
- On the search field, enter Profit and Loss.
- Customize the report to your desire.
- Verify the report details.
- If you wish to save the report, click Save customization.
That should get you going today, @cipgifts. I'm still here to help you further is you have additional questions. Just drop a comment below.
Hi there, cipgifts.
You can follow the steps below to credit your credit card:
- Click the Plus icon at the top.
- Select Credit Card Credit under Vendor column.
- Enter the vendor’s name under Payee.
- Select the credit card involve under Bank/Credit account.
- Under Item details sections, enter the item involve and the amount to be credited.
- Click Save and close.
To check, you can visit your credit card’s register and you should be able to see the amount under the PAYMENT column.
Visit us again if there’s anything else you need.
I understand your instructions. However, what do I do with the transactions that show the credits/refunds for the credit card? Do I select it and exclude it or delete it completely?
Hi there @NV1,
Great that you understand the instructions.
You wouldn’t need to exclude or delete the transactions that show the credits/refunds for the credit card if the same transactions show up on your bank statement.
Please check this article for future help: Manage Vendor Credits.
If you have other concerns, I’m always willing to help.
I thought this worked perfectly but now my vendor totals are off - showing a negative and an overdue amount so this option does not work to balance the account either.
Quickbooks needs to create the ability to match a vendor credit to a credit card credit (or bank deposit) so it shows a credit it due to the account and the credit was paid by the vendor.
I have tried every option I can in the forum and nothing works
Hey there, @cipgifts,
Thanks for performing the suggested steps provided by my peers on this thread.
Recording a credit card credit offsets the value if you return something you purchased with your business credit card. This will allow your account to properly balance in the program.
You might have created a vendor credit and a credit card credit, which is why your vendor totals are off. Please see the screenshot below for your reference.
If you didn't enter bills prior to creating a vendor credit, you may end up with negative balances for your vendors. To help fix this, you'll first need to create a bill. Then, you can link the vendor credit to a bill payment by performing the steps below:
- Go to the Plus icon (+) at the upper right.
- Select Expense or Check.
- In the Choose a payee drop-down, choose the vendor name.
- Leave the amount field blank.
- From the Add to Expense/Check section, click Add for the outstanding bill and vendor credit.
- Click Save and close.
For more information, you can go through this useful article: Manage Vendor Credits.
If you have downloaded banking transactions, you can match them in the For Review tab to the existing entries in QBO. Please see this article for more details: Add and Match Transactions.
This will get you on the right path, @cipgifts.
I'll be right here to help if you need anything else. Have an awesome day.
I will review everything but upon quickly reviewing your reply there is one HUGE issue.
Creating a bill is incorrect - that's creating a duplicate invoice for the same items and wrongly increases my cost-of-good sold.
Scenario - I ordered materials for products I sell - that invoice goes to the category "cost of goods sold". I paid that invoice in full with my credit card. The materials were defective - so I returned them. My vendor balance is zero.
I need to create a credit (credit due to my credit card account not my checking account) which shows the product was returned to that vendor. That credit must also reduce my cost-of-goods sold for proper accounting.
When the vendor issues that credit and it downloads to my credit card account, I need to match it to the credit on that vendor.
In the end the vendor should show a zero balance AND zero past due. Everything I tried either shows a negative balance, a past due amount or both.
From what I tried on this post
Thank you for the response, @cipgifts.
Let's create a vendor credit and a deposit to your accounts payable. I'm here to help you accomplish this so you can reconcile your vendor balance.
To start with, creating a vendor credit allows QuickBooks to track your returned items. Here's how:
- Go to the Plus icon.
- Under Vendors, select Vendor Credit.
- Select your vendor and the date.
- Enter your items and the amount.
- Click Save and close.
From there, you'll have to create a bank deposit for your credit card against your account payable. This way, it'll reconcile the balance of your vendors.
In addition, here a couple of screenshots for your visual reference and an article to learn more about vendor credits: Manage Vendor Credits.
Lastly, you can also check this helpful article that might help be your guide for your future reference: Applying Vendor Credits.
It'll be always my pleasure to help if you have any other questions. I'll be right here in the Community ready to help.
I found the answer finally that worked perfectly for me. The deposit created the credit for the vendor and it matched perfectly to my downloaded transaction.
We had a file cabinet that was delivered damaged and reordered the file cabinet and had a refund come through the credit card for the original file cabinet, but this refund happened on the credit card statement the following month, showing on the credit card statement under payments. This is the only way I personally can figure out how to do a reconciliation and get it to match my credit card statement balance and reconcile: I have to enter the refund through Bill Pay and NOT the "Enter credit card charges". I have to use the credit card vendor as the vendor, otherwise I cannot apply this refund. When I reconcile the credit card the next month, it will let me reconcile by not choosing these refunds, then when I go to post the payment in Bill Pay, I choose the invoice QB's created (which will be more than the payment that actually was paid by the refund amounts), and then I apply the refunds as they now show up in Bill Pay under the credits available for that vendor (which in this case is the credit card) and I can reduce the amount of the payment made by those credits. There should be an easier way to do this? I can't do it through the reconciliation screen, I have tried all the ways to Sunday and it never works.
Hello there, @HM58.
When reconciling the QuickBooks bank account, just compare it with the actual bank statement covered on that specific period to avoid discrepancies.
Know that the most important thing in reconciliation is to match your QuickBooks bank register to your bank statement.
You may read this article to learn more about reconciling in QuickBooks Online and some troubleshooting steps you may encounter while reconciling: Reconcile Hub.
If you have other questions, feel free to reach out to us anytime. We're always here to help. Have a good day!
I paid $315 for our company's new Quickbook ON LINE on Feb 6, 2020, then two days later I find that new Quickbook on Line was not what I need, and make a cancellation on Feb 13, 2020 as I changed back to QB Desk top Pro Plus. Case#[removed], but when I get my Credit Card Statements, it only have one credit card refund for -$315, and QBook also change me Quickbook Payroll for $315, so It did not get the refund at all, when I called few days ago, It was not in corrected transactions, Instead of $20. or $40 refund and etc. that make the whole matter more confused! I am your loyal customer since 2016, please have it straight up, I am willing to wait, my contract No. is [removed], email address: [email address removed]
May Gung /Garden Villas Inc./East & West Investment/China Garden USA
Hi there, Lucky2529.
We had to remove the account details that you've shared here for the security of your account. This is because the Community is a public forum and all users or visitors of the site can see them.
I can see that you've already called in about the refund. However, we're unable to open accounts or review billing history in this platform.
I would still recommend reaching out to our Customer Service Department once again. They'll be able to check non the refund that was given to you and have this sorted out.
Please follow these steps on how to reach out to them in case you're not able to save their contact details:
- Open QuickBooks.
- Go to Help, then select QuickBooks Desktop Help.
- Select Contact Us.
- Inform them that you need help with your refund, then select Continue.
- Click Start messaging.
I'll be around if you need anything else.
Quickbooks had me call the QB merchant services and they have me on hold for ever. They are the only one who can credit a customer, funds back to the customers Credit card.
BY THE WAY, has anyone ever gotten good customer service from QB. Not me, I always get someone from another country reading from a manual. How about a professional please.