When recording vendor refund, it doesn't do anything with the discount and refund given. Those are only for customers. To record a vendor refund, here's what you'll need to do:

To start, let's enter a vendor credit. Here's how:

In the left menu, click the + New button.
Select Vendor credit or Receive vendor credit.
In the Vendor drop-down, select your vendor.
Enter the necessary information on how you record purchases with the vendor.
Select Save and close.

Then, let's deposit the money you got from the refund.

In the left menu, click the + New button.
Select Bank Deposit.
In the Account drop-down menu, select the account where you got the refund.
Go to the Add funds to this deposit section.
Select the vendor who gave you a refund in the Received from column.
Choose Accounts Payable in the Account column.
Enter the amount and the method your vendor used to refund you.
Select Save and close.

Once done, continue to Step 3 found on this article to connect the bank deposit to the vendor credit: Enter a refund from a vendor. After that, check the balance on your Accounts Payable.

If you have more questions regarding this or any QuickBooks concerns, feel free to comment back below. I'll be here to help. Have a great day.

W

westandpinedesignAuthor

The problem with these steps, is the Bank Account is already connected. (That's one of the first things the Start Up Videos tells you to do.)

Which means the original purchase transaction was already recorded from my bank. And the refund money was automatically deposited into the bank account, and showing as a transaction that I need to review.

This is what I need to review in my "Bank Transactions".

How do I Record this Vendor Refund from my bank?

D

DebSheenD

Thank you for sharing your concern in the Community, westandpinedesign!

I'll make sure that you can record a vendor refund from your bank.

You can create a bank deposit to track this refund. You don't need to enter a vendor name as long as you select the correct expense account.

Here's how:

Click on the + New button.
Under Other column, click Bank Deposit.
From the Account box, select the expense account used upon purchasing the equipment.
On the Add funds to this deposit section, choose the Account where the money is coming from.
Enter the Amount.
Press on Save and close.

You can check this article link for further information on how to enter a refund from a vendor.

Feel free to reply to this thread. I'm always here to help.

P

Procamdetailing

Did you ever find a solution to your question? I have the same problem and don't understand if I should put "refunds given" or "refunds received" for the refund I received from the vendor.

JessT

Hi Procamdetailing,

Thank you for taking the time to get help with your vendor refund. I'll share with you some scenarios that will guide you through recording it.

Instead of using a refund account, you'll want to use the expense account of the item that you paid for. In this way, the posted expense in that account will be reversed.

If you purchased an inventory item using your bank account and your vendor returned the items with a refund, you can record the refund as a bank deposit and use the A/P account in it. It will turn into credits in your vendor's profile and becomes a matching entry to the downloaded transaction. On the other hand, you'll also want to create a vendor credit and use the same item to replenish its quantity.

After recording both transactions, you can link them together using an expense, as shown below. This will close them and prevent you from applying these credits as payments to future bills.

If you purchased an inventory item with a credit card, you'll enter a credit card credit. Then, use the same items to also increase its inventory count. That's the only thing you need to do for a refund to credit card purchases. This credit card credit can be a matching entry to the downloaded transaction.

You can also check about handling vendor credits and refunds for your additional reference.

I'm just around if you need more help managing your refund. Take care and good evening!

C

chris280

If the vendor credited a refund to the card that was used, either a debit card or credit card, and that credit shows up in the bank feed for that account, should a vendor refund still be credited as described? Could the transaction in the feed simply be classified and the associated accounts be credited? If not, why? If not, and a vendor refund needs to be credited as described, should the transaction showing the vendor refund credit in the bank feed be excluded so as to avoid counting the refund twice?

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