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Mr Patterson
Level 1
posted
‎October 09, 2021 03:45 AM
last updated ‎October 09, 2021 3:45 AM

Credits received and credits given (Credit Notes)

Ok

I pay for most my goods up front so when something can not be delivered I receive credits to my account 

So for example if my supplier gives me £100 back 

how do I reconcile that (Match the transaction) do I match it against an expense?

 

Also I also have to credit my customers so for this example I then have to give my customer £150 back 

I make a transfer of £150 to my customer

When this shows as a transaction as above 

how do I reconcile that (Match the transaction) do I match it against an expense?

 

QB help were unhelpful and advised me to do it wrong which I don't know if it's still wrong 

Also my accountant has no clue 

 

Thanks in advance 

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1 Comment 1
MichelleBh
Moderator
Moderator
‎October 09, 2021 05:54 AM

Credits received and credits given (Credit Notes)

You've come to the right place for answers, @Mr Patterson.

 

I'll walk you through how to record the credits you received and the money you gave to your client in QuickBooks Online. This way, I can guide you accordingly. 

 

You’ll need to create a Supplier credit to record the £100 returned by your provider. Let me show you how: 

 

  1. Go to the New tab on the left side, then choose Supplier Credit. 
  2. Pick the appropriate account in the Category section.
  3. Enter the Date, Amount, and other necessary fields. 
  4. Click Save and close. 

 

Next, enter the supplier refund on the deposit screen if the funds do not come from your automated bank feed. Please follow the steps below: 

 

  1. Select the New tab, then choose Bank Deposit. 
  2. Pick the supplier name in the Received From drop-down. 
  3. In the Account field, select Accounts Payable.  
  4. Enter the Amount, then click Save and Close. 

 

Once done, create either Expense or Cheque to link the funds. Let me guide you how: 

 

  1. Go to the +New tab on the left side and choose the exact form. 
  2. Pick the supplier name in the field. 
  3. Add the Supplier Credit and Bank Deposit. 
  4. Click Save and close. 

 

For the complete instructions, visit this article: How do I handle supplier credits and refunds?

 

For your customer credit, you’ll need to create either a Credit Note or  Delayed Credit. Then apply these to the invoices. See this article for how to record credit according to your scenario: Create and apply credit notes or delayed credits in QuickBooks Online.

 

Moreover,  I'll take note of your experience with our support and send this feedback to our dedicated team. This way, we can improve the services we offer to our customers. 

 

I've included articles on how to handle customer refunds and record overpayment as a tip in case you encounter such a situation in QuickBooks:

 

 

Don't hesitate to tag my name in the comment section if you have clarifications on this matter or other concerns. I'm always around to help you again. Enjoy your day, Mr Patterson.

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