Partial Refund on Service Contract of a Vehicle

Hello there, gwells23.

Let me shed some light on how to record a vendor refund.

In QuickBooks Desktop (QBDT), there are several ways to record a vendor refund. The process will be determined by the following scenarios:

• The vendor sends you a refund check for a bill that is already paid
• The vendor sends you a refund check for returned inventory items
• The vendor sends a refund check that is not related to an existing bill
• A vendor sends a refund check on behalf of the original supplier

That said, we recommend consulting your accountant first to determine which process to perform. This is to ensure the accuracy of your books. Once you have the information handy, you can go over this article for detailed instructions: Record a vendor refund in QuickBooks Desktop. 

For additional resources, the following resource contains a list of topics that will guide you on how to handle any vendor-related activities: Expenses and suppliers. Simply select the article on the list that best addresses your concern.

You can also bookmark the Community link in your browser for future reference. From there, you'll find information on how to grow your business and manage your accounting tasks.

Reach out to me again if you have additional questions about recording a refund or other QuickBooks concerns. I'll get back to respond to them. Enjoy the rest of the day

@gwells23 

Assign the deposit to the same account that you used when you bought the service contract.  If you booked it as an expense, use the same expense account.  If you booked it as an asset and have been expensing it over time, assign it to the asset account.  The refunded amount should equal the asset balance.