Hi, kristi-flatcable.
I’m here to help you enter the refund check you received from your insurance company in QuickBooks Online.
Entering vendor refunds in QuickBooks depends on how you record your purchases. Make sure the refund hits the expense account. We can create a vendor credit, enter a bank deposit from the refund check and apply it using Pay Bills. Let me guide you through the process.
First off, let's enter a vendor credit. Here's how:
- Click the + New button, then select Vendor credit.
- Choose the vendor from the drop-down.
- Select the Category details or Item details depending on how you record your purchase.
- Hit Save and close.
Then, record a bank deposit to the refund check.
- Click the + New button and choose Bank Deposit.
- Select the appropriate credit card account where you got the refund.
- In the Add funds to this deposit section, fill out the following fields.
- Received from: Select the vendor who gave you a refund.
- Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
- Payment method: Enter the method your vendor used to refund you.
- Amount: Enter the amount of your refund.
4. Click Save and close.
Once done, you can now link the bank deposit to the vendor credit using Pay Bills. This is to ensure your vendor expenses are accurate.
- Click the + New button, then select Pay Bills.
- Choose the bank deposit you created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
- Hit Save and close.
I recommend checking out this article: Enter a Refund From a Vendor.
For your reference, I'm also adding here some articles that you can visit about entering a vendor credit and applying them to your transactions:
I'll be right here to help if you have clarifications entering the refund check in QuickBooks.
