How do I match a vendor credit with the amount deposited back to the bank account?

Hi there cdawkins,

Thanks for providing those details.

Since you already entered a vendor credit, we must create a Bank deposit first to match your bank transaction.

Here's how:

1. Select Plus Icon (+)  at the top, and click Bank Deposit.
2. In the Add other funds to this deposit section, fill in the following fields:
        Received from: Select or enter the vendor name.
        Account: Select the Account payable account.
        Amount: Enter the check amount.
3. Select Save and Close.
   

To link the deposit to vendor credit:

1. Select Plus Icon (+) at the top, and click Check.
2. Select Choose a payee drop-down arrow, and click the vendor name.
3. Provide the Check #, Date, Amount and Memo fields blank.
4. From the Add to Check sections, select Add for the outstanding vendor credit and deposit.
5. Select Save and Close.

You can also check the article: How do I handle vendor credits and refunds?

Should you have other questions, please let me know. Have a great day!

The same vendor issued credit for the bill, depositing the funds back.  I entered a vendor credit because I want record of the credit memo and expense (in and out),

this is fine

but how do I match the bank entry with the vendor credit which still shows a balance amount?

As suggested, on the deposit change the from account to accounts payable and use the vendor name - THEN use pay bills, select the bill the deposit made, and apply the vendor credit to pay it.

match the deposit in QB to the banking download

"The linking of the deposit to the vendor credit, shouldn't that be a NON-posting transaction"

You got Real Money. That needs to Post as part of banking.

"or if it does create a journal entry"

Never use JE for AP or Banking. You don't use JE when Names are involved, and you don't use JE for anything where the program already has tools. You have Banking tools and Vendor Tools. And using a JE for AP means you just broke "cash vs accrual basis" reporting.

"To summarize:  VC:  dr A/P, cr Exp."

No.

"Bank Deposit: dr Cash  cr A/P"

No.

I'll help you track and match that deposit, lainscough.

When we add a line item in the deposit, we can select the name of the project associated with your vendor from the RECEIVED FROM column. This way, we'll be able to link the deposit to your project. I'll guide you how:

1. Click the + New icon.
2. Select Bank Deposit.
3. Choose the appropriate bank from the Account drop-down menu.
4. Enter the correct period in the Date field.
5. Go to the Add other funds to this deposit section.
6. Select the project associated with your vendor in the Received from column.
7. In the Account column, enter the expense account you want to post the transaction.
8. Enter the amount of the deposit.
9. Hit Save and Close to complete the process.

Since we're splitting the transaction and the amount is already divided, we'll no longer have to match it. We can just simply add it instead of matching the deposits. You can follow the steps that I've listed  below:

1. Select Banking from the sidebar menu.
2. Click the Banking tab.
3. On the For Review tab, select the deposit to open it.
4. Tick the Add radio button.
5. Click the Split button to open the Split Transaction window.
6. Choose the name of the appropriate customer or project from the RECEIVED FROM column.
7. Select a Category and enter an Amount for each category to assign to the transaction until the total amount matches the downloaded amount. You can select Add Lines to add more categories.
8. Hit Save and Add.
9. Then, click the Add button (beside Edit Split).

There you have it. In case you need to assign and categorize your downloaded banking transactions, you can visit our article to be guided in doing it: Assign, categorize, edit, and add your downloaded banking transactions.

Please know that the Community always has your back, so don't hesitate to let me know If I can be of any assistance. Feel comfortable to tag me in your comments.