Question

Correct way to record a supplier credit resulting from overpayment on a vendor payment

Forum|Forum|7 years ago
January 23, 2019
3 replies
0 views

I had processed a vendor payment via a cheque outside the system as all the vendor invoices were not yet on QBO and the vendor needed us to pay urgently. At the time of recording the invoices and its payment on QBO, we realized we had paid the same invoice twice as it showed twice on their Statement of Account. So he gave us a credit note to be used against future bills. Whats the best way to record this transaction ?

QuickBooks Online

Rustler

enter a credit memo for the vendor, if the original bill used an expense account you can use that same account for the credit memo, other wise use other income

N

NainaGAuthor

So record the bills twice, make the payment as if these were two separate invoices and record the credit memo.

A

Anonymous

Hello, NainaG.

You only record the bill once then make a payment. As recommended by Rustler, record the vendor credit for the vendor.

Keep in touch if you have any other concerns.

AmericanRV

I'm using QB 2021 desktop. I cannot find the answer I need anywhere online, and I've been looking for a long time.

We paid our garagekeepers insurance online a couple of months ago and entered it as a check (not a bill). Today we got a refund check for $6.18 (and for all the hassle, I wish they'd have kept it). I need to know how to get the refund check into QB's undeposited funds and all I can find is the Make Deposits/ Enter a Credit Memo/ zero it out through Pay Bills method.

In none of these steps can I make it show up when I do my next bank deposit. What am I missing -- or is this another example of QB's inability to handle things? Thanks for ANY help!

Candice C

Hey there, @AmericanRV.

Thanks for joining in on this thread. Let me point you in the right direction to get this fixed as soon as possible.

To clarify, have you tried the third scenario in this guide listed below?

Record a vendor refund in QuickBooks Desktop

Based on the information you gave, those instructions will be the best to use for your business.

Keep me updated on how it goes. It's my priority that you're able to get back to running your business. Have a wonderful day!

AmericanRV

Thank you -- yes, I've tried that step and others. I've used that method many times over the years and it works fine if it's a credit the vendor is going to carry.

What I need to know is, how do I enter that refund check I received and have it show in UNDEPOSITED FUNDS, so when I do my next deposit it's included? When I use method 3 I can't enter the refund check as going into Undeposited Funds (when I try I get the message "You cannot make a deposit into Undeposited Funds. Choose a bank or asset account.")

If I do it using Method 3, it simply zeros it out so there's no outstanding credit. It doesn't allow me to show the check still undeposited.

It doesn't make sense that I'll just have to remember to include that refund check when I make the next deposit, does it? Thank you so much for ANY insight you can give me.

E

EggBend412

I've done the steps as outlined and my vendor account is correct and my bank account is correct. However, I see the refund (for paying an invoice twice) from the vendor now as "unapplied cash bill payment". How do I clear that?

K

Kevin_C

Thanks for joining this thread, EggBend412.

I'd like to ensure we're on the same page, so I can provide you with the correct information about handling vendor credits in QuickBooks Online.

What set of steps above did you follow? What are the transactions you've recorded in your QBO account? Any further details could help us give the best resolution to your concern.

It would also be great if you could include some screenshots so I can better understand it.

I'd appreciate any additional details you can provide. I'll be keeping an eye out for your response on this.

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