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FelixCleaning
September 30, 2024
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Returned Supplies

  • September 30, 2024
  • 2 replies
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Hi all, 

 

I'm still fairly new to QBO and I'm trying to get a better understanding of categorizing transactions since I have my business CC linked to my QB account. 

 

My question, how would I categorize a transaction that is the result of me returning supplies. For example, I bought $100 worth of supplies at Lowes and then next day I returned $48 so I have a credit on my card for $48. Do I just simply add it as an expense and it will cancel out since it showing as money in?

 

I appreciate any help or guidance on this, thank you in advance.

Best answer by KimAnnVA

I work with contractors that purchase from stores all the time and return, my preferred method for a clean profit and loss I prefer to credit the expense account and debit the same account.  


Example:

Bank feed Lowes purchase for $100 was marked vendor "Lowes" and categorized mine as "Job Supplies and Materials".

Bank feed $48 credit/return was marked "Lowes" as vendor and categorized as "Job Supplies and Materials."  

 

Profit and Loss Report will show a total for "Job Supplies and Materials", if you click into, it will bring up all the transactions, you will see your $200 and -$48.  This is correct way for it to be applied as your accountant just wants the total you spent on Job Supplies and Materials without additional calculations.  

 

Also note that if you have an unused credit, you may create a vendor credit in the top left corner of QuickBooks Online account >+New >Vendors>Vendor Credit, then you can apply this credit once it is used to an expense transaction. 

2 replies

K
KimAnnVAAnswer
September 30, 2024

I work with contractors that purchase from stores all the time and return, my preferred method for a clean profit and loss I prefer to credit the expense account and debit the same account.  


Example:

Bank feed Lowes purchase for $100 was marked vendor "Lowes" and categorized mine as "Job Supplies and Materials".

Bank feed $48 credit/return was marked "Lowes" as vendor and categorized as "Job Supplies and Materials."  

 

Profit and Loss Report will show a total for "Job Supplies and Materials", if you click into, it will bring up all the transactions, you will see your $200 and -$48.  This is correct way for it to be applied as your accountant just wants the total you spent on Job Supplies and Materials without additional calculations.  

 

Also note that if you have an unused credit, you may create a vendor credit in the top left corner of QuickBooks Online account >+New >Vendors>Vendor Credit, then you can apply this credit once it is used to an expense transaction. 

MsNorthPND18
MsNorthPND18
October 1, 2024

Hi Felix,

 

I'm here to provide some information that will help you with your categorizing transactions concern.

 

The transaction is from banking, QuickBooks can't suggest a category. However, you can record the credit manually as credit card credit and expense for the whole amount. The ability to manually enter transactions, including those associated with a credit card. Here's how:

 

  1. Select the Plus icon.
  2. Click Expense.
  3. Choose the credit card account in the Bank/Credit account drop-down.
  4. Enter the additional information about the transaction.
  5. Click Save

 

You can also refer to this article for guidance on how to manually upload transactions in QuickBooks Online: Manually upload transactions into QuickBooks Online.

 

If you need help with the accounts, I suggest checking with your accountant for further assistance.

 

In addition, I've included some resources that you can browse to help categorize and review your online banking transactions in QuickBooks:

 

 

If you have additional inquiries regarding record transactions in QuickBooks Online, feel free to leave a comment below. We are here to address all your questions. Take care and stay safe.

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