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L
LizaM1
February 7, 2023
Question

Hi, we made a payment to a supplier in error, which was recorded as a Cheque. The supplier has now refunded the money to us, how do I record this in QB Online? Thanks

  • February 7, 2023
  • 3 replies
  • 0 views
Original commenter did not share additional details

3 replies

R
rvrfrf
February 7, 2023

Thanks for reaching out to the Community, LizaM1. I appreciate your detailed information.
 

When entering a supplier refund in QuickBooks, the process can differ depending on the scenario. For example, if a supplier was overpaid, you don't need to enter a credit, since your books will already have an unapplied credit that acts as the supplier credit. Steps can also differ if you have automated bank feeds activated, or if your refund went to a credit card.
 

Here's how to deposit your money from the refund:
 

  1. Use your + New button, then go to Bank deposit.
  2. Specify a supplier in the Received from field.
  3. Enter Creditors (Accounts payable) for your Account, then include an Amount.
  4. For VAT, choose No VAT.
  5. Select Save and close.

 

Next, you can enter a cheque to finish the process.

 

If there's any additional questions, I'm just a post away. Have a lovely day!

L
LizaM1Author
February 28, 2023

I have done this, but the supplier is now showing with a credit balance, whereas our payment to her and her repayment back to us, should have netted each other off?

R
RoseJillB
February 28, 2023

Thank you for your prompt reply, @ LizaM1

 

I’m here to help you with the credit balance showing in QuickBooks Online (QBO). My colleague above is correct about creating a bank deposit for this transaction. After that, you will need to create a check to match the deposit you created. Here’s how:

 

  1. Click the + New icon and select Cheque.
  2. Choose the Payee and the Bank Account where you deposit the refund.
  3. From the Add to Cheque section, select Add for the deposit and the supplier credit.
  4. The balance should be 0 as they will cancel each other out. Then, select Save and close.

 

You’ll want to check out this article for more details: Record a customer refund or supplier refund in QuickBooks Online.

 

Let me know if you have more questions about any QuickBooks-related matters. I’m always here to help. Have a good one!

L
LizaM1Author
February 28, 2023

Ok, I will try this

 

Also, just to check I added the initial payment to the Supplier as a Cheque, was this correct?

 

Thanks

L
LeizylM
March 9, 2023

I can share additional information to get this resolved, LizaM1. 

 

Since vendor credit has already been entered, you'll have to create a Bank Deposit to deposit the money from your return. 

 

Here's how:

 

  1. Click the Plus (+) icon and tap Bank Deposit.
  2. Enter the necessary information.
  3. On the Add funds to this deposit section, choose the vendor.
  4. On the Account column, hit Accounts Payable (A/P).
  5. Enter the amount.
  6. Click Save and close.
     

Once done, use the Pay Bills option to link both transactions. I'll show you how:

 

  1. Click the + New button.
  2. Select Pay bills.
  3. Select the existing bank deposit.
  4. Take note of the amount of the vendor credit in the Credit Applied field.
  5. Select Save and close.

 

For more resources, while working with your other vendor transactions, you can check out some topics here: Expenses and vendors.

 

Keep your post coming if you need more help with recording supplier credit in QBO. I'm always here to help. Have great day!

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