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insideoutmandy
November 28, 2020
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recording a supplier refund

  • November 28, 2020
  • 1 reply
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I bought an item from a supplier I entered the invoice and my payment but then had to return 1 item how do I record the refund  I followed the online instructions but then was unable to reconcile my accounts as they were out the amount for the refund.

Best answer by RCV

Thanks for coming back and provided us in-depth details of your refund concern, insideoutmandy.

 

Since you already make a bank deposit to record the refund, let's create a bill payment to link the refund. This process will offset the vendor's balance and links the deposit given back by your supplier.

  1. At the top menu, click Create menu (+) and select Pay Bills.
  2. Click the Filter button, and choose the supplier in the Payee field.
  3. Click Apply.
  4. Put a checkmark on the transaction with the refund amount.
  5. The amounts in the Credit Applied the Open Balance fields should be the same.
  6. The amount in the Payment field should be zero (0).
  7. Click Save and close.

For more details about this one, see Enter and pay bills article.  Feel free to visit our Supplier credits page for more insights about creating and managing credits from your suppliers. 

 

I'll be right here to continue helping if you have any other concerns or questions about QuickBooks. Assistance is just a post away. Take care always.

1 reply

R
RCV
November 28, 2020

Let me guide you on how to record a supplier refund in QuickBooks Online (QBO), insideoutmandy.

 

If the refund is for returned stock items, you'll need to create a supplier credit. Then, enter the supplier refund cheque in the Deposits screen. Let me show you how:

  1. Click the New plus icon. 
  2. Select Bank Deposit.
  3. In the Add funds to this deposit section, enter the details in the following fields:
    • Received from: Select or enter the supplier name.
    • Account: Select the Creditors (Accounts Payable)
    • Amount: Enter the cheque amount.
  4. Press Save and close.

Once done, link the deposit to the supplier credit by following the steps below: 

  1. Click the New plus icon
  2. Select Expense or Cheque.
  3. In the Payee drop-down, choose the supplier name.
  4. In the Add to Expense or Add to Cheque section, select Add for the outstanding supplier credit and deposit.
  5. Press Save and close.

 

Once done, try reconciling your accounts again. Feel free to visit our Expenses and suppliers page for more insights about managing your expenses, paying bills, and stocks.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. You have a good one. 

I
insideoutmandyAuthor
November 28, 2020

Hi,

Thanks for the advice but I had already tried that. Then when I try to reconcile I can see by original payment (paid out) that is taken by suppliers before they post item out. The items did not arrive hence the refund. I then have the deposit entry (Paid in) and another entry  (paid out) that was from linking the deposit to the supplier credit. Please re advise.

Regards Mandy

R
RCVAnswer
November 28, 2020

Thanks for coming back and provided us in-depth details of your refund concern, insideoutmandy.

 

Since you already make a bank deposit to record the refund, let's create a bill payment to link the refund. This process will offset the vendor's balance and links the deposit given back by your supplier.

  1. At the top menu, click Create menu (+) and select Pay Bills.
  2. Click the Filter button, and choose the supplier in the Payee field.
  3. Click Apply.
  4. Put a checkmark on the transaction with the refund amount.
  5. The amounts in the Credit Applied the Open Balance fields should be the same.
  6. The amount in the Payment field should be zero (0).
  7. Click Save and close.

For more details about this one, see Enter and pay bills article.  Feel free to visit our Supplier credits page for more insights about creating and managing credits from your suppliers. 

 

I'll be right here to continue helping if you have any other concerns or questions about QuickBooks. Assistance is just a post away. Take care always.

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