Vendor Overpayment/Applying Refund to Credit

Hello, amber-nabyheck.

I'd like to verify, is the difference amount deducted as a bank fee? When recording the vendor refund, you can create a bank deposit and include the difference amount, then record a credit and combine them using the bill payment.

If you're unsure about the process, please consult with your accountant. They'll be able to give you the best accounting advice for your business. Don't have an accountant? Please feel free to can visit our Intuit Find-A-ProAdvisor site to find certified professionals near you.

To record a bank deposit for the vendor overpayment, you can follow these steps:

1. Go to Banking > Make Deposits.
2. If the Payments to Deposit window appears, select OK.
3. In the Make Deposits window, select the Received from drop-down and choose the vendor who sent you the refund.
4. In the From Account drop-down, select the appropriate Accounts Payable account.
5. In the Amount column, enter the actual amount of the Vendor check. For the difference, you can add the fee as a line item.
6. Select who the fee was from (for example, the bank charging you). from the Account drop-down.
7. Enter the amount fee as a negative number. For example, if the difference amount was $34.47, enter –34.47.
8. Review the deposit total with the fee.
9. Enter the remaining information in the Deposit.
10. Hit Save & Close.

After creating the deposit, record a Bill Credit for the amount of the Vendor Check.

Here's how:

1. Go bank to Vendors > 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. Note: If you are not sure which account to select, Intuit recommends contacting your accounting professional.
5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated.)
6. Click Save & Close.

Once done, link the Deposit to the Bill Credit by following these steps:

1. Go back to the Vendors menu, then select Pay Bills.
2. Check the Deposit that matches the Vendor check amount.
3. Select Set Credits and apply the Bill Credit you created earlier then select Done.
4. Select Pay Selected Bills, then select Done.

For reference, please check out this article: Record a vendor refund in QuickBooks Desktop. To learn more about the features in your QuickBooks Desktop for Mac, feel free to open this guide: QuickBooks Desktop Mac 2021 User’s Guide.

You're welcome to post a reply here if you have additional questions about recording the vendor refund or other concerns managing your account. I'll be around to help you out.