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A
allyvetimaging
July 16, 2021
Question

How can I apply a deposit to a vendor credit? The vendor credit transaction does not show up in Banking when I try to match the bank deposit to the refund.

  • July 16, 2021
  • 2 replies
  • 0 views
I received a refund from a vendor and created a vendor credit to reflect it.

2 replies

BettyJaneB
BettyJaneB
July 16, 2021

I hope you're doing great today, @allyvetimaging.

 

I got you covered in applying the deposit to a vendor credit in QuickBooks Online.

 

You have to create a deposit to record the refund. This way, you can match the transaction from the Banking page. Know that the vendor credit will not show up on the Banking section. This can be found when applying vendor payments.

 

To enter the refund as a deposit:

  1. Click the New + icon.
  2. Choose Bank Deposit.
  3. Under Add funds to this deposit, choose the vendor name in the Received from field.
  4. Choose Accounts Payable in the Accounts field, then enter the credit/refund amount in the Amount field.
  5. Select Save and close.

After that, you can now match the deposit to the bank transaction. Just make sure that the match is correct.

 

Here's how:

  1. Find a downloaded transaction with the Match option in the Action column.
  2. Note the Date, Description, Payee, and amount spent or received.
  3. Select the downloaded transaction to expand the view.
  4. Review the Matching records found in QuickBooks. This is the possible matching transaction you already entered in QuickBooks.
  5. Select the link next to each match to get more details.
  6. Make sure this is the correct match. In particular, review the Deposit to, Payment method, and Bank account fields on forms for the existing transaction in QuickBooks.
  7. If this is the correct match, close the open transaction.
  8. Select ​Match​.

Refer to this article for more information about categorizing transactions in QuickBooks Online: Learn how to review downloaded bank and credit card transactions and put them in the correct accounts.

 

To give you more tips about managing vendor credits and recording cash backs in QuickBooks Online, please check out these links:

Let me know if you have any other concerns with recording vendor credits in QBO. I'm always ready to help. Take care!

    A
    allyvetimagingAuthor
    July 19, 2021

    That worked.  Thanks so much!

    S
    SashaMC
    July 19, 2021

    Hello allyvetimaging,

     

    I am so happy that this was resolved for you. Just know whenever you need help, the QuickBooks Community is here for you! I hope you enjoy your day!

     

     

    T
    TonyaRSB
    August 29, 2022

    I just copied my QBO advanced account to a new QBO advanced. The categorized transaction did not come over in the copy. Some of the items I need to correct is linking vendor credits to deposits. How would I do this if I don't have the categorized transactions available?

    S
    SarahannC
    August 29, 2022

    Hello there, TonyaRSB.

     

    Yes, that's right. Categorized transactions are unable to copy from an existing QuickBooks Online Advanced company to a new one. No worries, we can handle them properly by creating a bank deposit. Let me show you how:

     

    First, make sure you've created a vendor credit. Then, make a bank deposit.

     

    1. Go to the +New button and select Bank Deposit.
    2. In the Add other funds to this deposit section, enter the following:
    3. Received from: Select or enter the vendor name.
    4. Account: Select the Account payable.
    5. Amount: Enter the amount.
    6. Select Save and Close.

     

    Then, link the vendor credit to the deposit using Pay bills. After that, we can match the deposit with your bank transaction. Here's how:

     

    1. Go to the Transactions or Banking menu. 
    2. Select the tile for the account you want to review.
    3. Find a downloaded transaction. Then, click Match under the Action column.

     

    That will do. I have collected some articles for more information about handling bank data in QBO.

     

     

    Also, if you want more tips and ideas about handling vendor credit and refunds in QuickBooks, feel free to visit and read this guide: Track credits for your vendors.

     

    Please let me know if you have more concerns about associating transactions in QuickBooks or have questions about QuickBooks Online Advanced. I'm here to assist you anytime. Take care!

    T
    TonyaRSB
    August 29, 2022

    There are already bank deposits created for these credits. The error is telling me I need to link them. Most of the errors are from prior years. How am I supposed to clear these if the vendor credit and bank deposy have already been recorded?

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