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MaryAnn O
September 12, 2023
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Vendor Refund for Overcharge

  • September 12, 2023
  • 1 reply
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I made a payment over the phone with a debit card to a vendor who accidentally ran the card for $300 more than the invoice, they have since refunded the $300. Now I can't categorize the bill since the amount was more than what I entered the bill for. I understand how to apply the refund but not sure how to categorize the $300.00 over charge. 

Best answer by DHeraV

Hello there, @MaryAnn O. I can walk you through the process of how to categorize a vendor refund in QuickBooks Online (QBO).

 

If you have already recorded the amount of the overcharge as a Vendor Credit in QuickBooks, you can then make a bank deposit. Here's how:

 

  1. In your QBO account, click on +New, then select Bank deposit.
  2. In the Account dropdown menu, select the account where you got the refund.
  3. Fill out the following fields in the Add funds to this deposit section:
    • Received from: Select the vendor who gave you a refund.
    • Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
    • Payment method: Enter the method your vendor used to refund you.
    • Amount: Enter the amount of your refund.
  4. Once ready, click on Save and close.

 

After that, you can now link the bank deposit and the vendor you created by using Paybills. Let me walk you through the steps of how:
 

  1. In your QBO account, click on +New, then select Pay bills.
  2. Select the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be US $0.00.
  3. Once done, click on Save and close.

 

For detailed information, kindly check out the third option of this article: Enter vendor credits and refunds in QuickBooks Online.
 

To categorize the vendor credit in QuickBooks, you can choose an expense account. If you're unsure about which specific account to link the vendor credit to, I suggest seeking guidance from your accountant for proper advice.
 

Additionally, you might want to consider reading this article that provides specific techniques for customizing your reports in QuickBooks to gain valuable insights: Common custom reports in QuickBooks Online.
 

Let me know if you require further assistance or have additional QuickBooks-related queries by leaving a comment below. I'm sure to circle back and provide the necessary help.

1 reply

DHeraV
DHeraVAnswer
September 12, 2023

Hello there, @MaryAnn O. I can walk you through the process of how to categorize a vendor refund in QuickBooks Online (QBO).

 

If you have already recorded the amount of the overcharge as a Vendor Credit in QuickBooks, you can then make a bank deposit. Here's how:

 

  1. In your QBO account, click on +New, then select Bank deposit.
  2. In the Account dropdown menu, select the account where you got the refund.
  3. Fill out the following fields in the Add funds to this deposit section:
    • Received from: Select the vendor who gave you a refund.
    • Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
    • Payment method: Enter the method your vendor used to refund you.
    • Amount: Enter the amount of your refund.
  4. Once ready, click on Save and close.

 

After that, you can now link the bank deposit and the vendor you created by using Paybills. Let me walk you through the steps of how:
 

  1. In your QBO account, click on +New, then select Pay bills.
  2. Select the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be US $0.00.
  3. Once done, click on Save and close.

 

For detailed information, kindly check out the third option of this article: Enter vendor credits and refunds in QuickBooks Online.
 

To categorize the vendor credit in QuickBooks, you can choose an expense account. If you're unsure about which specific account to link the vendor credit to, I suggest seeking guidance from your accountant for proper advice.
 

Additionally, you might want to consider reading this article that provides specific techniques for customizing your reports in QuickBooks to gain valuable insights: Common custom reports in QuickBooks Online.
 

Let me know if you require further assistance or have additional QuickBooks-related queries by leaving a comment below. I'm sure to circle back and provide the necessary help.

M
MaryAnn OAuthor
September 12, 2023

Thank you, this worked.

D
DebSheenD
September 12, 2023

It's a pleasure to have you here again, @MaryAnn O.

 

I’m glad that my colleague was able to help with your concern.

 

Please know that you’re always welcome to post in the Community space for any QuickBooks concerns you may have.

 

If you need tips and resources to manage your QuickBooks Online account and finances, feel free to visit our Support page to learn more. This provides information to help your navigation experience be more effective.

 

Let us know if you have other concerns with vendor refunds in QuickBooks. We'll be happy to lend a helping hand. Stay safe!

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