How do I add a credit note from my supplier?

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If you've received credit from a supplier as part of a promotion or as a thank you, you can enter this in QuickBooks by following the steps below:

Step 1: Enter a supplier credit

1. Select + New > Supplier credit or Receive supplier credit.
2. In the Supplier dropdown, select your supplier.
3. Depending on how you record purchases with this supplier, enter the Category details or Item details (usually, this is the category, product, or service you’re getting a credit for).
4. Select Save and close.

Step 2: Deposit the money you got from the supplier
1. Select + New > Bank deposit.
2. In the Account dropdown menu, select the account where you got the refund.
3. In the Add funds to this deposit section, fill out the following fields:
- Received from: Select the supplier who gave you a refund.
- Account: Select Accounts Payable (you need to pick Accounts Payable so you can tie the refund to the supplier credit).
- Payment method: Enter the method your supplier used to refund you.
- Amount: Enter the amount of your refund.
4. Select Save and close.

Step 3: Use Pay Bills to connect the bank deposit to the supplier credit
Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your supplier expenses accurate.

1. Select + New > Pay bills.
2. Select the bank deposit you just created. You’ll see the amount of the supplier credit in the Credit Applied field. The Total payment should be GBP £0.00.
3. Select Save and close.

For any other scenarios in which you need to record a supplier credit (for example, when receiving a refund for a business expense), click here.