How to pass the accounting entries for the purchase returns made to the concerned seller?

Let me help you record the accounting entries for the purchase returns made to the concerned seller, @gnrao1551.

We can enter the refund to record the purchase returns made to the seller and this depends on how you record your purchases. If you’re not sure, I'd recommend consulting your accountant. First, let's enter a supplier credit. This is to ensure the credit hits the expense account you use for this supplier. Here's how: 

1. Tap + New.
2. Select Supplier credit.
3. In the Supplier dropdown, choose your supplier.
4. Depending on how you record purchases with this supplier, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
5. Press Save and close.

Second, deposit the money you got from the refund:

1. Tap + New.
2. Select Bank deposit.
3. In the Account dropdown menu, choose the account where you got the refund.
4. 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.
5. Press Save and close.

Lastly, use the Pay Bills to connect the bank deposit to the supplier credit. Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your supplier expenses accurate:

1. Tap + New.
2. Choose Pay bills.
3. Select the bank deposit you just created. You’ll see the amount of the supplier credit in the Credit Applied field. The Total payment should be $0.00.
4. Press Save and close.

For recording a refund for a business expense, we can choose the following options: 

• If you got credit on a future purchase, you should enter a credit instead.
• If your customer used a credit card on a purchase, you can refund a credit card payment on the sales receipt or invoice.

Also, you'll want to visit our Help Articles page for more tips and references for managing your business with QuickBooks Online.

Keep in touch if you need any more assistance with this, or if there's something else I can do for you. I've got your back. You have a good one.