Question
How to record a supplier credit card refund of excess deposit?
- Here is the scenario, we had an event in the fall, for example in October, and we reserved rooms for the event at a hotel. To secure the reservation, we had to provide a deposit by credit card. As it turns out the deposit was larger than the final invoice, so we received a refund of the unused deposit back to our credit card.
1) We pay a deposit of say $35,000 to the hotel in September by credit card
This is recorded as a bill payment
2) We get the final invoice, for $32,500 from the hotel. We enter the bill, and apply the payment from #1 to the bill. This leaves a balance of $2,500 on the supplier account in QBO.
3) We get a refund to our credit card for $2,500 in October, following the final invoice.
I've tried using a "credit card credit", but this is not appropriate as nothing is being returned. What is the correct way to match the credit card transaction, and bring the supplier account to $0?