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Weber
April 19, 2019
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Construction company vendor refund

  • April 19, 2019
  • 1 reply
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I am a small construction company.  I use item numbers for project categories such as Item #10 is Builders Risk.  I received a refund for overpayment of Builders Risk on a project.  How do I deposit this refund and have it show up on a project report under the correct item category (#10) so that actual amount paid for the Builders Risk is accurate.  There is no Item # space on any deposit forms that I've found.  It will post to correct project, but not to a specific item#.  Thank you in advance!

Best answer by

Hi there, @Weber.

 

I can help you on how to deposit the vendor and make it show on the correct item category. There are certain scenarios we need to determine first before recording the refund. 

 

If the vendor sends you a refund check for a bill that is already created, you can follow the steps below:

 

  1. First, you'll need to make a deposit for the refund. From the Banking menu, click Make Deposits.
  2. If the Payments to Deposit window appears, click OK.
  3. In the Make Deposits window, click the Received from drop-down and choose the vendor who sent you the refund.
  4. In the From Account drop-down,  select the appropriate Accounts Payable account.
  5. In the Amount column, enter the actual amount of the Vendor check.
  6. (Optional) Enter a memo, check number, payment method and class.
  7. Click Save & Close.

 

Next, record a Bill Credit for the refunded amount. From here, you'll need to select billable so you can enter the project name. Later on, you will link this to the created deposit.

 

Here's how:

  1. From the Vendors menu, select Enter Bills.
  2. Select the Credit radio button to account for the return of goods.
  3. Enter the Vendor name.
  4. Click the Expenses Tab and enter the Accounts on the original Bill.
  5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
  6. Click Save and Close.
  7. To link the deposit to the Bill Credit, you'll need to select Pay Bills from the Vendor menu.
  8. Check the Deposit that matches the Vendor check amount.
  9. Select Set Credits and apply the Bill Credit you created earlier then click Done.
  10. Click Pay Selected Bills then Done.

 

That should do it.  It will now post to the correct project with the specific item.

 

For other appropriate scenarios on how to record the refund from a vendor, please check this helpful article: Record a vendor refund in QuickBooks Desktop.

 

Should you have other questions about the process, don't hesitate to let me know. I'm always here to help. Have a great weekend.

1 reply

A
Anonymous
Answer
April 19, 2019

Hi there, @Weber.

 

I can help you on how to deposit the vendor and make it show on the correct item category. There are certain scenarios we need to determine first before recording the refund. 

 

If the vendor sends you a refund check for a bill that is already created, you can follow the steps below:

 

  1. First, you'll need to make a deposit for the refund. From the Banking menu, click Make Deposits.
  2. If the Payments to Deposit window appears, click OK.
  3. In the Make Deposits window, click the Received from drop-down and choose the vendor who sent you the refund.
  4. In the From Account drop-down,  select the appropriate Accounts Payable account.
  5. In the Amount column, enter the actual amount of the Vendor check.
  6. (Optional) Enter a memo, check number, payment method and class.
  7. Click Save & Close.

 

Next, record a Bill Credit for the refunded amount. From here, you'll need to select billable so you can enter the project name. Later on, you will link this to the created deposit.

 

Here's how:

  1. From the Vendors menu, select Enter Bills.
  2. Select the Credit radio button to account for the return of goods.
  3. Enter the Vendor name.
  4. Click the Expenses Tab and enter the Accounts on the original Bill.
  5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
  6. Click Save and Close.
  7. To link the deposit to the Bill Credit, you'll need to select Pay Bills from the Vendor menu.
  8. Check the Deposit that matches the Vendor check amount.
  9. Select Set Credits and apply the Bill Credit you created earlier then click Done.
  10. Click Pay Selected Bills then Done.

 

That should do it.  It will now post to the correct project with the specific item.

 

For other appropriate scenarios on how to record the refund from a vendor, please check this helpful article: Record a vendor refund in QuickBooks Desktop.

 

Should you have other questions about the process, don't hesitate to let me know. I'm always here to help. Have a great weekend.

    W
    WeberAuthor
    April 19, 2019

    Just a note:  When you are recording a Bill Credit, after entering the Vendor name, Item 4 says to Click the Expense Tab.  To get the credit to apply to an "ITEM" you have to click the ITEM tab, not the Expenses Tab.  Took me several tries, but finally got this to work.  I think part of my problem was not refreshing the report when I went to see if it worked!  Thank you for your help.

    A
    Anonymous
    April 19, 2019

    You're most welcome, @Weber.

     

    I'm glad the steps worked for you.

     

    Entering the expense tab or the item tab may depend on the scenario given in the article. If the vendor sends you a refund check for returned inventory items, then the returned items with the amount should be entered on the bill credit. Either way, it will post to the correct project as long as you marked it as billable.

     

    Just in case you need other references in the future, you can always visit our site: Help articles for QuickBooks Desktop.

     

    Let me know if you need anything else. I'm always here to help if you have additional questions about recording refund in QuickBooks. :)

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