QuickBooks Record a Refund from a Vendor in QuickBooks Online

Record a Refund from a Vendor in QuickBooks Online

In QuickBooks Online, Vendor Credit is used to record returns to vendors. It is also used to supply the details of vendor refunds. Though, itโ€™s recorded therefore no confusion when it comes to paying the seller. Customers can keep up-to-date information on their financial situation by recording refunds in various instances. To make your task much simpler and quicker, it is necessary to understand how to record a Refund from a vendor in QuickBooks Online. The steps for recording a vendor refund in QuickBooks might vary in different situations. So, read this article very carefully till the end to get aware of all the cases when it comes to recording a refund from a vendor in QuickBooks.

Different Scenarios to Record a Refund from a Vendor in QuickBooks Online?

 The vendor can issue a credit document stating that you no more owe the amount or they can also issue a refund check. Below are discussed cases that you should know before recording a refund from a vendor in QuickBooks Online:

Case 1: You must record the credit document on the vendor credit and apply it when you pay the vendorโ€™s bill.

Case 2: When a vendor issues a refund check, you must still record it to the vendor credit, as well as enter the deposit for the vendor check and then try to link it to the vendor credit.

Letโ€™s See the Detailed Steps to Execute Both as below:

Step 1: Enter the Vendor Credit:

  • First, click on the + New tab
  • Next, go to the Vendors list and select the option โ€œVendor Creditโ€
  • Now, browse the vendor from the drop-down menu โ€œChoose the vendorsโ€
  • Enter correct issue date of the credit document or refund check
  • After that, enter the credit amount at the top-right corner
  • Choose the account that you want to use for original billing in the account details
  • Choose the items within the item details which you returned to the vendor
  • Along with that, attach an electronic copy of the credit
  • At last, save and close from the bottom right in your screen.

If you receive a check that indicates you have to record the refund check from a vendor in QuickBooks Online.

Step 2: Deposit Refund Check of Vendor:

In this particular step, you have to record the refund check after it is done with recording it into vendor credit and you also require a deposit check in QuickBooks Online.

  • The very first, click on the + New tab
  • Select the option โ€œBank Depositโ€ from the โ€œOthersโ€ column
  • Fill out the required fields within the โ€œAdd new depositโ€ section
  • Next, you have to enter the vendor name within โ€œReceived fromโ€
  • Choose the account payable in the โ€œAccountโ€ section
  • Now, enter the correct amount of refund within โ€œAmountโ€ field
  • Click on the โ€œSave and Closeโ€ tab using the downward arrow on the side of โ€œSave and newโ€.

Step 3: Link Vendor Credit and Bank Deposit:

Using expenses, link the vendor credit and bank deposit to keep your vendor expenses accurate and up-to-date.

  • Click on the + New menu
  • Go to the Vendors column and then select the option โ€œExpensesโ€
  • Choose the vendor that issues credit document/refund check
  • Add the current transaction on the right-hand of the screen in both Vendor Credit as well as bank deposit
  • Once you add then you can observe that the net balance of the payment bill becomes zero
  • In the end, hit โ€œSave & Closeโ€.

This is the complete process to record a Refund from a Vendor in QuickBooks Online in a simple and efficient way.

Record a Credit Card Refund in QuickBooks Online:

This approach will be utilized when you use your company credit card to make a purchase and then have to return the item for some reason. After that, the vendor will normally reimburse the amount charged to your credit card.

  • Initially, go to the Gear icon and then click โ€œChart of Accountsโ€
  • From the list, choose the credit card and then hit โ€œView registerโ€
  • Now, using the drop-down menu, select the โ€œCC Creditโ€ within the โ€œAdd CC expenseโ€ section
  • A new window will appear with a nameโ€Credit Card Registerโ€
  • In this, you need to fill some of the required details
  • Verify once whether you choose the correct credit card or not in โ€œAccountโ€ section
  • Once done with that then enter the date when you returned the product
  • Choose the vendor to whom you want to return the product in the โ€œPayee accountโ€
  • You can also add the relevant description in the Memo
  • Enter the price of the returned product within the โ€œpaymentโ€ section
  • After correctly entering the required fields, you have to click on the โ€œSaveโ€ button.

Related article: How to Fix QuickBooks Point of Sale Unable to Read a Credit Cards

Steps Required to Follow to Record a Vendor Refund in QuickBooks:

If your vendor issues a refund check, you may quickly link it to the vendor credit by adding a deposit for the refund check. Follow these steps to accomplish this:

  • In the beginning, click on the Create + sign and then click โ€œBank Depositsโ€
  • Find the โ€œAdd New Depositsโ€ menu and then enter the following details
  • From a row, click on the vendor who issues the check-in the Received
  • Hit the โ€œAccounts Payable accountโ€
  • And then add the correct amount of the check
  • Select the arrow which is just beside the โ€œSave and Newโ€ tab
  • Next, click on the โ€œSave & Lateโ€ >>> โ€œCloseโ€
  • Again, go to the Create + New symbol and then click on the โ€œExpenseโ€
  • Choose the vendor whose refund check that you have deposited
  • Consequently, choose the โ€œAddโ€ within the section called โ€œOutstanding Vendor Creditโ€
  • After that, go to the Add in the Deposit

Finally, move to the arrow beside the โ€œSave and Newโ€ and then hit the โ€œSave and Closeโ€ tab.

Also Read: How to Download Bank Transactions into QuickBooks Desktop

Conclusion:

Above we covered all the methods to record a refund from a vendor in QuickBooks Online as well as in QuickBooks Desktop. You can perform any of them as per your requirements.
If anything related to QuickBooks software is still bothering you and you are seeking for an expert who can drag you out from this situation. Then our certified QuickBooks team will help you and instantly solve your error/doubt. We provide 24/7 service so donโ€™t hesitate to call us anytime or chat with us 24ร—7.


Frequently Asked Questions

Q1. How do you record a Vendor Credit in QuickBooks Online?

Ans: โžค Click on the โ€œCreate + New sign and then select the โ€œVendor Creditโ€ option
โžค Choose the vendor who issued the credit
โžค Enter the correct date of the credit
โžค After that, enter the accurate credit amount
โžค Go to the Account Details section and choose the account which was used at the time of the original bill.

Q2. How do I categorize the refund in QuickBooks?

Ans: You can easily categorize the refund from the downloaded transaction list. Here are the steps to do so:
โžค Initially, visit the โ€œBankingโ€ page
โžค Next, go to the Banking menu and select the tab called โ€œFor Reviewโ€
โžค Now, select the downloaded transaction and choose โ€œCategory refundโ€
โžค Lastly, click โ€œAddโ€.

Q3. What is the procedure for recording insurance refunds in QuickBooks?

Ans: โžค Go to the Banking menu and from the list, select โ€œEnter Credit Card Chargesโ€
โžค Choose the correct credit card account
โžค Next, select the insurance company in the โ€œPurchased Formโ€ field
โžค Click on the โ€œrefund/Creditโ€ radio button
โžค Enter all the required information in the form
โžค You must fill out the required field of expense account, date, and amount
โžค In the end, click โ€œSave & Closeโ€.

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