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Electrician
Electrician
July 30, 2020
Solved

Refund check from vendor

  • July 30, 2020
  • 3 replies
  • 0 views

My general liability insurance company gave sent me a check for $13 a  refund due to some Covid stuff.  I deposited that check into my checking account and want to log it into Quickbooks for Mac 2020.  I don't need anything special such as it attached to any bill, I just want to log it and make sure that it doesn't count as income.


I went to Make Deposits and entered it as a deposit to my checking account and choose the expense account as the "General Liability Insurance" expense account that I put in my Chart of Accounts.

 

Am I done at this point?

 

I looked up some ways to do it and they all seem very complicated, such as continuing on to Enter Bill and Pay Bill.  I am not sure what that is about.  I tried doing it one way, but it then entered that $13 as a payment out of my checking account which is definitely wrong.

 

Do I have to do something else other than entering the deposit?

    Best answer by JasroV

    You’re all set, @Electrician.

     

    You can deposit the refund and no need to enter a Bill. Just ensure you entered a reason for the refund in the description field to track it easily when reconciling your accounts.

     

    Once you’re ready to reconcile your account, you can check this article for the detailed steps: Reconcile an account in QuickBooks Desktop. This link provides complete information on how to accurately reconcile your account.

     

    You can also check the QuickBooks Desktop for Mac user guide and learn some tricks about managing your software efficiently.

     

    You're always welcome to post in the Community space whenever you have further questions with your account. I’ll be around ready to lend a helping hand.

    3 replies

    JasroV
    JasroVAnswer
    July 30, 2020

    You’re all set, @Electrician.

     

    You can deposit the refund and no need to enter a Bill. Just ensure you entered a reason for the refund in the description field to track it easily when reconciling your accounts.

     

    Once you’re ready to reconcile your account, you can check this article for the detailed steps: Reconcile an account in QuickBooks Desktop. This link provides complete information on how to accurately reconcile your account.

     

    You can also check the QuickBooks Desktop for Mac user guide and learn some tricks about managing your software efficiently.

     

    You're always welcome to post in the Community space whenever you have further questions with your account. I’ll be around ready to lend a helping hand.

      Electrician
      ElectricianAuthor
      July 31, 2020

      Thank you for the reply Jasro!  I have one more question.

       

      I originally looked at this page, as you can see there are many different ways to enter the refund and all of them are long and complicated. https://quickbooks.intuit.com/learn-support/en-us/manage-vendors/record-a-vendor-refund-in-quickbooks-desktop/00/185971

       

      The one closest to what I am doing is "Scenario 3: The vendor sends a refund check that is not related to an existing bill".  But that has 3 different parts to it, and I only did the first part.  And you said only doing the first part is fine.  So I am just curious why all of those scenarios have so many other things to do when just entering the deposit is enough?

       

      I ask because I am trying to learn the reasoning behind the actions to better understand the software and bookkeeping.  Thank you

       

       

      C
      ChristieAnn 11
      July 31, 2020

      Hi there, Electrician.

       

      I'll provide details on why there's still another step to follow after entering a deposit while recording a refund from a vendor.

       

      Yes, you right entering the deposit is enough. As mentioned above, you can deposit the refund and no need to enter a Bill or Bill credit. Just assure you entered a reason for the refund in the description field to track it easily when reconciling your accounts.

       

      However, there are additional steps after entering a deposit to make sure your QuickBooks account balance stays accurate. Then, to offset the amount of refund. That's the reason you'll need to record a Bill Credit and link the Deposit.

       

      You can click this article to view the recommended solution on how to fix AR and AP balances on the cash basis Balance Sheet: Resolve AR and AP balances on the cash basis Balance Sheet.

       

      Please also refer to this article to see steps on how to transfer available credits from one vendor to another through the use of a temporary clearing account: Transfer and apply credit from one vendor to another in QuickBooks Desktop.

       

      Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

      B
      Berj17
      October 6, 2023

      Hi!
      The Bank cleared my 1st property tax payment, but the Vendor sent me a refund check. So, upon receipt of the refund check, I deposited it as received from the Vendor. It got recorded on the General Ledger but not showing on the Vendor Ledger. How do I fix this?

      F
      FateCandylaneT
      October 6, 2023

      We're glad to see you joining in on this thread, Berj17. Let me help ensure vendor refunds are accurately entered into your desktop account.

       

      With QuickBooks, recording vendor refunds that are not related to an existing bill requires us to create a Deposit of the vendor check received. Let's ensure to review the account type selected so the transaction will reflect on the Vendor Ledger. Then, you'll need to record a Bill credit for the amount of the vendor check. To do this:

       

      1. Go to the Vendors menu, then select Enter Bills.
      2. Select the Credit radio button to account for the return of goods.
      3. Enter the Vendor name.
      4. Select the Expenses tab and enter the Accounts you would normally use for refunds. 
      5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated.)
      6. Select Save & Close.

       

      Once done, you can follow Scenario 3-Step 3: Link the Deposit to the Bill Credit outlined in this article: Record a vendor refund in QuickBooks Desktop.

       

      Additionally, we recommend contacting your accounting professional to further guide you in which posting accounts are needed to use when recording this transaction. This ensures all your financial data are accurate and balanced.

       

      Moreover, you may want to run specific payroll summary reports to help you track and view your payroll totals, taxes, and other deductions.

       

      We've got you covered anytime you have additional queries when handling vendor transactions in your account. Just let us know in the comments below, and we'll be sure to provide further help. Take care.

      T
      TonyaLogan1
      November 3, 2023

      This link will walk you through the process to refund a check from a vendor.  There is also a link on how to record refunds in your product.  Hope this helps:  https://quickbooks.intuit.com/learn-support/en-us/vendor-credits/enter-a-refund-from-a-vendor/00/335902 

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