refund

Hi @KCTC.

Allow me to clarify information on how recording a vendor refund works in QuickBooks Online.

In recording a refund transaction, you cannot categorize a refund (which is shown as a positive amount or income when downloaded from your bank) as an expense account right away. To categorize them in your QBO checking review items refund you received, let's follow the correct process of recording a vendor refund in the system.

1. Click + New and then select Bank Deposits.
2. In the Deposit To drop-down, select the account where the money will be deposited.
3. Type in the Date.
4. Enter these fields:

• • Received From: Choose the vendor who sent you the refund.
  • From Account: Select the Accounts Payable account or the account used in the expense transaction.
  • Amount: Enter the vendor check amount.
  • Memo, Chk No, and Pmt Meth are optional fields.

5. Click Save and Close.

Once a deposit is entered, you'll see a positive balance on your QBO checking. To zero it out, you'll need to link the deposit to a vendor credit. Here's how:

1. Go to + New and then select Expense or Check.
2. Choose the payee.
3. Once you select a payee, you'll see a window on the right corner of the screen showing the deposit transactions you've created.
4. Click on Add.
5. Hit Save and Close.

That should keep you on the right track.

For additional know-how, you can reference this article: What is the difference between Pay Bills and Write Checks?.

Also, here's a great article that you can reference with matching and categorizing the transactions to the right account: Categorize and match online bank transactions in QuickBooks Online. This includes how to split and exclude bank entries.

Come place a comment if you have follow-up questions about recording refund transactions in QuickBooks Online. I'm always here to help. Keep safe.