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Q
QualGenSer
October 20, 2024
Question

Entering a refund as an account credit

  • October 20, 2024
  • 1 reply
  • 0 views

I have run into a situation I am not sure how to handle and would appreciate some expert advice. I am not an accountant, just a small business owner, so please keep this as simple as possible.

I am using Quickbooks Desktop 2019.

I have a company who happens to be both a vendor and a customer. They are the vendor when I order my parts, but they are a customer when I turn in an invoice for warranty work. Yes, I have them named slightly different to be able to keep them separate. 

I did a warranty job for them, and ended up using a very expensive part that I had in stock, so I did not need to order the part. I billed them as a customer, but when I received the check I realized that they had cut me a little bit short, as the incorrect part number had gotten entered somewhere. Their reimbursement for the part was less than what I actually paid for it. I contacted the company, and we corrected the error. They said they were going to initiate a chargeback for the difference, but since there was no purchase from my end, the chargeback would be applied as a credit to my account. 

1 reply

Q
QualGenSerAuthor
October 20, 2024

Sorry, the rest of this got cut off for some reason.

I know all dealers have an account, but I have never used it, as I pay for all my parts up front.

How do I enter this into Quickbooks properly, so it shows the credit on my account?

 

G
GebelAlainaM
October 20, 2024

That's okay, @QualGenSer, and I appreciate the information you have. You can create a bank deposit affecting the Accounts Receivable account if the invoice was partially paid. Let me explain the details.

 

Based on your scenario, it seems the invoice was not fully paid. In this case, you can create a bank deposit affecting the Accounts Receivable account and link it to the partially paid invoice.

 

Here's how:

  1. Go to the Banking menu and select Make Deposit.
  2. If the Payments to Deposit window appears, select OK.
  3. In the Make Deposits window, select the Received from dropdown and choose the correct customer.
  4. In the From Account dropdown, select the appropriate Accounts Receivable account.
  5. In the Amount column, enter the actual amount of the check.
  6. Enter additional details if needed.
  7. Select Save & Close.

To apply the credits, go to the Customer menu and select Receive Payments. Choose the customer from the Receive From dropdown, then click Apply Credits.

If you mean something different by chargebacks or the credits you wish to show on your account, please let me know in this thread.

Additionally, you can check out these articles for more details on managing customer and vendor credits in QuickBooks Desktop:

Furthermore, if you need to pull up a report with your financial data in QuickBooks, refer to the article: Run and customize reports in QuickBooks Desktop.

Feel free to reply in this thread if you have additional questions or need clarification about managing refunds and credits in QuickBooks. I'm here to help.

Q
QualGenSerAuthor
November 1, 2024

The actual invoice was fully paid according to the invoice. I had inadvertently put the wrong part number on the invoice, so they paid me for the invoice amount. The problem was that the part number that should have actually been put on the invoice was a more expensive part. 

Instead of just cutting me a second check for the difference, they just put a credit on account for me. I've never had an account with them before, so there is nothing to reflect that in QB.

 

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