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K
Kiwi69
November 8, 2022
Question

Credit card refund from vendor after being overcharged

  • November 8, 2022
  • 1 reply
  • 0 views

Our vendor overcharged our credit card last month.   Charged $170 instead of $85.

I entered the bill at $85, and when I did the Pay Bill on the credit card I entered $170 as the amount being paid. And that balanced the credit card account.    I was left with a $85 credit on the vendor account. 

This next month, they have refunded our credit card but I have no bills with this vendor in this credit card month so I am unable to apply the credit.  
I don’t know how to get the $85 to be deducted from the total amount due on credit card bill, and get that to balance also. 

1 reply

BigRedConsulting
BigRedConsulting
November 8, 2022

Edit the credit card refund transaction and change it to use the AP account for the 'expense' account, and enter the vendor name as the customer:job. Then save it.

 

Then use Pay Bills to apply the remaining amount of the original over-charge to the refund, which will appear as a bill in the table of things to pay.

K
Kiwi69Author
November 8, 2022

Thank you for helping - I have created a credit card credit for the $85. And used the AP account in the expense line, and the vendor name in the Customer.    This did clear the Vendor account. 

However, When I go to Pay Bills, and I select the vendor, it shows $85 as amount payable, and then a credit to apply for $85 = $0 in the Amt to Pay column.     I would need it to show -$85 in Amount to Pay in order for it to reduce the Credit card Vendor Amt to pay?    

 

Checking that I have done the original entry correct  - I had a bill for $85, and then paid that bill with $170.  Should I have entered that bill at $170 instead?

A
AbegailS_
November 8, 2022

You're on the right track , @Kiwi69. 

 

I'm here to provide additional information in recording your credit card refunds in QuickBooks Desktop (QBDT). 

 

Let's  make sure that you select the Refund/ Credit option when you enter the credit card refund charges. You can follow these steps below: 

 

  1. Go to the Banking menu.
  2. Select Enter Credit Card Charges and pick Refund/Credit. 
  3. Choose the vendor from the Purchased From ▼ dropdown.
  4. Complete the Date, Ref. No, Amount, and Memo. 
  5. Hit Save & Close. 

 

For more information, see this link: Set up, use, and pay credit card accounts.

 

Once you go to Pay bills it will appear as a bill in the table of things to pay.

 

Feel free to browse this module for additional information on how to manage payments/reimbursements in the future: Void or refund customer payments in QuickBooks Desktop.

 

If everything is all good and you'd want to resolve the difference in your account balances, check this link: Reconcile an account in QuickBooks Desktop.

 

Keep in touch so we can respond as quickly as possible. You can post additional queries about this or QuickBooks in general. Take the best care!

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