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lagrangebks
March 8, 2023
Question

How to enter Vendor Refund when part of refund is for transaction from several years ago.

  • March 8, 2023
  • 1 reply
  • 0 views

We recently closed out our P.O. Box right after paying our annual renewal fee ($76), so they refunded the renewal fee, but they also refunded the key deposit ($6) we made when we first signed up for the P.O. Box several years ago. The $76 annual fee was paid with our credit card, but the P.O. refunded us with a cashier's check for $82 which includes the $6 key deposit. I deposited the cashier's check in our regular bank account. Now I'm trying to figure out how to enter the refund/bank deposit transactions into Quickbooks Desktop so that everything balances out correctly. Any help is greatly appreciated. Thanks!

1 reply

DHeraV
DHeraV
March 11, 2023

Welcome to the Community, @lagrangebks.

I'm here to provide information about entering a vendor refund from a transaction made several years ago in QuickBooks Desktop (QBDT). 

When recording a vendor refund check in QBDT, there are 3 steps to follow. Here's how:

First, record a Deposit of the vendor check:

 

  1. Go to the Banking menu, then select Make Deposits.
  2. If the Payments to Deposit window appears, select 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. Enter the remaining information in the Deposit.
  1. Select Save & Close.

 

Next, record a Bill Credit for the amount of the vendor Check:

  1. Go to the Vendors menu, then select Enter Bills.
  2. Select the Credit radio button to account for the return of goods.
  3. Enter the Vendor name.
  4. Select the Expenses tab and enter the Accounts you would normally use for refunds. Note: If you are not sure which account to select, Intuit recommends contacting your accounting professional.
  5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated.)
  1. Select Save & Close.

 

Lastly, link the Deposit to the Bill Credit:

  1. Go to the Vendors menu, then select  Pay Bills.
  2. Check the Deposit that matches the Vendor check amount.
  3. Select Set Credits and apply the Bill Credit you created earlier then select Done.
  4. Select Pay Selected Bills, then select Done.

 

For detailed information, kindly visit: Record a vendor refund in QuickBooks Desktop.

 

Moreover, I'll also share this link where you can search for articles that can serve as your guide in managing your QBDT file: QuickBooks Desktop Help Articles.

Feel free to leave a reply if you require further assistance with recording refunds of your vendors in QuickBooks. The Community team always has your back. Have a good one.

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