Subcontractor Repayment of Purchased Supplies from Our Vendor

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

In QuickBooks, subcontractors are referred to as vendors. If a vendor refunded you for a business expense, how you enter their refund will depend on how you record purchases.

Here's how it's done if you enter expenses or write checks:
 

1. First, confirm you've already created the initial expense or check in your books and assigned a Category/Account to it.
2. Use the + New button, then go to Bank deposit.
3. Find your Add funds to this deposit section and enter the amount refunded by your vendor, then choose the Category/Account you selected on your initial expense/check. If this refund was for an expense you linked to a customer or project, select the Track returns for customer checkbox and specify a customer/project. This way, your costs won't be overstated.
4. In the event you deposited customer payments for invoices into your bank account along with the refund, add them in the Select the payments included in this deposit area.

If you enter bills you plan to pay later, deposit vendor credits when no expense has occurred, or record vendor refunds on credit cards, you can refer to the detailed steps in our Enter vendor credits & refunds article.

In the event you're unsure of which process to use, you'll want to work with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Please don't hesitate to send a reply if there's any additional questions. Have a great Friday!