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N
NealeyFinance
November 15, 2023
Question

How to Reconcile a Refund From a Vendor for a Statement With a Credit Balance

  • November 15, 2023
  • 1 reply
  • 0 views

One of our vendors with which we have credit terms issues a refund when the monthly statement has a credit balance instead of carrying that credit balance into the next month.  We returned more to this vendor this month than we purchased, so I have both bills and vendor credits to reconcile.  How do I match all transactions to the refund?  The "Find Match" function on the banking page returns no transactions to select, and the "Bill Pay" function won't let me apply the full amount of the vendor credits, only the amount that offsets the purchase total.  How do I mark both the bills as paid and the credits as fully applied?

1 reply

S
ShyMae
November 15, 2023

Let me guide you on how to mark bills and credits as paid and fully applied, @NealeyFinance.

 

When paying a bill in QuickBooks Online, selecting more vendor credits than the total billed amount is unavailable. This is a built-in feature to ensure accurate accounting and prevent errors. However, there is still a way to achieve your desired outcome. You can create a credit card credit to account for the refund and link it to the remaining credits. 

 

It's essential to pay the bill with the total purchase amount first. Then, create a credit card credit affecting accounts payable to record your refund. 

 

Here's how: 

 

  1. Go to + New, then click Credit card credit.
  2. Click the Payee dropdown and select a vendor. 
  3. From the Payment date column, enter the date you've received the refund. 
  4. From the Category column, select Accounts Payable.
  5. Complete the necessary fields.
  6. Enter the refund or credit amount in the Amount column, then click Save and close. 

 

 Now, you can match the transactions in your bank feeds. 

 

  1. Hover to Bank Transactions, and select the bank account associated.
  2. From the For Review tab, look for the refund transactions then match this with the credit card credit created in QBO. 
  3. If you won't be able to see a match transaction, click the Find other match option. 
  4. Once the amount and transactions match, click Save. 

 

Lastly, let's link the existing vendor credit to mark it as applied:

 

  1. Go to + New, then select Pay Bills. 
  2. Tick the vendor credit transaction, then click Save. 

 

Moreover, I've added a helpful resource to guide you in reviewing your bank statement and QBO transactions: Learn the reconciliation workflow in QuickBooks.  

 

I'm still ready to back you up if you need more help with your vendor refund. I'll keep the thread open so you can comment back.

N
NealeyFinanceAuthor
November 15, 2023

Thanks for getting back to me.  Is there a workaround for when the vendor credit is on a credit card?  That is our current situation, and the credit card account is not available for selection when creating a check.

J
JanbonN
November 15, 2023

Thank you for the prompt response, @NealeyFinance. 

 

Let me provide you with a workaround that will let you use your credit card account instead.

 

Link the bill and vendor credits using an expense transaction. Make sure that the vendor credits match the amount on your bill.

 

Here's how to do it:

 

  1. Go to the + New button, then choose Expense.
  2. Select the vendor with the credits, then a screen will pop up on the right. Choose the bill first before the vendor credit.
  3. Choose the Credit Card Account.
  4. Click Save and close.

 

After doing this, you can now match the transaction to your bank feeds.

 

  1. Go to the Bank Transactions tab, then select your Credit Card Account.
  2. Under the For Review tab, locate the refund transaction.
  3. If 1 record is found, you can click Confirm.
  4. This will automatically categorize the expense transaction.

 

You can now reconcile your account.

 

I'm adding this helpful article on how to put your online transactions to the correct accounts: Match online bank transactions in QuickBooks Online.

 

If you have more questions or concerns about your bank transactions, our Community team is always ready to provide you with assistance. Take care.

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