Credit card credit - purchase refund

Hi symmetry2022,

It's great to see you in Community.  Welcome!  QuickBooks Online provides the features you need to record your transactions with peace of mind.  I'd be glad to assist!

Entering a vendor refund depends on how your purchases have been recorded.  To ensure the credit is applied to the associated expense account you used to pay the supplier, you'll need to enter the supplier credit by following these steps;

1. Open + New from the left menu and then Select Supplier credit

2. Use the ▼ dropdown menu to select your Supplier

3. Enter the Category details or Item details for the category, product, or service you’re getting a credit for

4. Hit Save and close.

Next, you'll deposit the funds received from your supplier.  Here's how;

1. Select + New and then Bank deposit

2. In the Account ▼ dropdown menu, select the account where you got the refund

3. In the Add funds to this deposit section, fill out the following fields.

• Received from: Select the supplier who gave you a refund.
• Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the supplier credit. This may seem a little strange, but it’s the best way to do this.
• Payment method: Enter the method your supplier used to refund you.
• Amount: Enter the amount of your refund

4. Click Save and close.

Follow these steps to connect the deposit to the supplier credit;

1. Go to +New and then Pay bills

2. Select the bank deposit you just created.  The amount will appear in the Credit Applied field and the Total payment will be $0.00

3. Hit Save and close.

You're all set!  Here's a helpful guide for future reference.

Please don't hesitate to contact us here again, should other questions come to mind.  We'd love to help!