Skip to main content
K
kketchum
July 22, 2021
Question

Overpaid a bill and supplier refunded credit card

  • July 22, 2021
  • 2 replies
  • 0 views

I need help with clearing a credit off from a supplier. I'm going to use simple numbers for easy math for this explanation, not the actual amounts.  Supplier asked us to prepay $300 for an order via credit card. The invoice total ended up being $200, so we overpaid by $100.   The supplier refunded this $100 overage back to our credit card.  When I entered the bill I used the total of the actual invoice amount at $200.  I then entered the bill payment for that bill at what we actually paid at $300.  This created a negative amount for that supplier of $100.   I added a new credit card credit for the $100 refund, but now it's doubled the credit at the bottom of the total column for that supplier.  What is the proper way to do this so my supplier's account is cleared out?

    2 replies

    T
    Tammy_H
    July 22, 2021

    Hi kketchum,

     

    It's always great to hear from our QuickBooks Online members. There's a simple way to record a refund in your QuickBooks Online account. I can let you know how to enter this.

     

    To record a supplier refund, use the + New button to record a Credit card credit since the amount was refunded to your card. You should be able to match the credit within the banking feed. If you're unable to find a match, exclude the transaction from the bank feed. Select the checkbox by it, and hit Exclude. The only difference this will make to your books is that the transaction won't automatically be checked off during your monthly reconciliation. If you'd like to learn more, check out this article: Enter a refund from a supplier.

     

    If you have any questions about the process, let me know. Have a good evening!

    K
    kketchumAuthor
    July 23, 2021

    I already did the new credit card credit.  It's the next steps I'm confused about.  Which banking feed are you referring to when you say I should be able to match the credit within the banking feed?  Since it's a credit card, why would it show up on the bank feed?  

     

    And what I'm really trying to figure out is how to clear the credits that has created for this supplier.

    S
    SaraJ_2
    July 11, 2023

    Hi Kerri:

    I just had the same issue come up. Hopefully this works for you.

    You already issued the credit card credit, therefore you don't require the second one, so you can delete it.

    1) I applied the credit card credit to accounts payable.

    2) Then I went back to the most recent bill paid for that supplier and the credit card payment showed up directly below the original payment under outstanding transactions, and I selected that line and saved the transaction. It got rid of the credit. Hopefully I can duplicate this in the future! Good luck with your solution.

    Terms & ConditionsAccessibility statement