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Julie8888
August 9, 2021
Question

Vendor Refund for a Payment made prior to quickbooks

  • August 9, 2021
  • 1 reply
  • 0 views

I have tried to follow the refund processes, there seem to be so many.

So I received a refund in the financial year that I started quickbooks but the payment was made in the previous financial year, only a few months apart.

I have ended up with the amount in the correct expense account but A/P now shows a credit to the vendor. I am totally lost on how to fix this, it just seems so complicated to refund money to an expense account.

Please help.

Thankyou

1 reply

Rustler
Rustler
August 9, 2021

Some folks do that, posting refunds to an expense account to lower the total expenses, but it is not the cleanest way to do things.

 

I deposit a refund to the bank account and use Other Income as the source account for the deposit

 

If there is no bill entered, then posting a refund and using the vendor name will create a vendor credit.  So only do that when there is no bill entered that is outstanding or if the vendor is keeping the credit against future purchases

 

delete the entry for the credit, and just deposit it as I mentioned above

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