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preferredcandc
March 1, 2021
Solved

How do I enter a vendor credit when they are sending me a check back

  • March 1, 2021
  • 3 replies
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vendor overcharged our account on our credit card and now they are sending me a check
Best answer by Mark_R

Entering a vendor credit in QuickBooks Online (QBO) is easy peasy, @preferredcandc.

 

You can record a vendor credit and make sure it hits the expense account. Then, enter a bank deposit from the refund check you'll receive and link both transactions using Pay Bills. Let me guide you through the process.

 

First off, let's enter a vendor credit. Here's how:

 

  1. Click the + New button, then select Vendor credit.
  2. Choose the vendor from the drop-down.
  3. Select the Category details or Item details depending on how you record your purchase.
  4. Hit Save and close.

 

Then, record a bank deposit to the refund check.

 

  1. Click the + New button and choose Bank Deposit.
  2. Select the appropriate credit card account where you got the refund.
  3. In the Add funds to this deposit section, fill out the following fields.
    • 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. Click Save and close.

 

Once done, you can now link the bank deposit to the vendor credit using Pay Bills. This is to ensure your vendor expenses are accurate.

 

  1. Click the + New button, then select Pay Bills.
  2. Choose the bank deposit you created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
  3. Hit Save and close.

 

I'm adding this article for more guidance on this process: Enter a refund from a vendor.

 

You might also want to check out this article to learn how to view your transactions with your vendors in QuickBooks Online: View vendor transactions.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

3 replies

M
Mark_RAnswer
March 1, 2021

Entering a vendor credit in QuickBooks Online (QBO) is easy peasy, @preferredcandc.

 

You can record a vendor credit and make sure it hits the expense account. Then, enter a bank deposit from the refund check you'll receive and link both transactions using Pay Bills. Let me guide you through the process.

 

First off, let's enter a vendor credit. Here's how:

 

  1. Click the + New button, then select Vendor credit.
  2. Choose the vendor from the drop-down.
  3. Select the Category details or Item details depending on how you record your purchase.
  4. Hit Save and close.

 

Then, record a bank deposit to the refund check.

 

  1. Click the + New button and choose Bank Deposit.
  2. Select the appropriate credit card account where you got the refund.
  3. In the Add funds to this deposit section, fill out the following fields.
    • 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. Click Save and close.

 

Once done, you can now link the bank deposit to the vendor credit using Pay Bills. This is to ensure your vendor expenses are accurate.

 

  1. Click the + New button, then select Pay Bills.
  2. Choose the bank deposit you created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be $0.00.
  3. Hit Save and close.

 

I'm adding this article for more guidance on this process: Enter a refund from a vendor.

 

You might also want to check out this article to learn how to view your transactions with your vendors in QuickBooks Online: View vendor transactions.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

    P
    preferredcandcAuthor
    March 2, 2021

    thank you -  I don't think I said the correct info  -   I have a vendor that sent me bills for different projects and then we had some returns and then the vendor double charged me so they took everything we owed that month and did a credit leaving me with a $1675.76 credit that they are sending me a check.     I'm not sure how enter those bills that were being paid by credit and refunds.   I understand that I should put the credit for the $1675.76 and then when the check comes match them but what do I do about my other bills/refunds/charges?

     

    Thank you 

    Angelyn_T
    Angelyn_T
    March 2, 2021

    Thank you for getting back, @preferredcandc.

     

    You can go ahead with recording the vendor credit, then apply it to your bill/s. I'm here to guide you with the detailed steps.

     

    First, enter the credit:

     

    1. Open your QuickBooks Online account, then click on Vendor credit from the (+) New icon.
    2. Fill in the information on the Vendor Credit window (vendor name, date, item/account, amount).
    3. Save the transaction.

     

    If you haven't created the bill, enter it from the (+) New icon.

     

    1. Go to the Gear icon, then select Bill under Vendors.
    2. Enter the bill details.
    3. Click on Save.

     

    When you're ready to record the payment, you can follow these steps:

     

    1. Tap on the Mark as paid button from the Bill window.
    2. Select the bill from the Outstanding Transactions section.
    3. Pick the credit from the Credits section.
    4. Hit Save and close.

     

    Here's an article you can read more about creating and managing credits from your vendors in QuickBooks.

     

    You can also review the topics from our help articles for additional resources while working with QuickBooks in the future.

     

    If you need additional help with recording bills and payments using the vendor credit or refund, please let me know by adding a comment below. I'm always here to help. Have a good one!

    K
    katrina10
    July 15, 2021

    I am having this same issue, but I am on QB desktop, not online, so I can't follow the same steps. 

     

    Vendor charged us $7,834.57 to our AMEX. The bill ended up only being $6,687.92. The balance is sitting in their vendor account as a credit, however, they actually refunded the difference of $1,146.65 to our credit card, so it actually isn't a credit with the vendor. I would like to fix this in QBD to show it accurately. Please help!

    R
    ReymondO
    July 15, 2021

    Good day, @katrina10.

     

    I'd be glad to help you in accomplishing your task in QuickBooks Desktop (QBDT). 

     

    Let me walk you through the process on how to record your vendor refund. If they send you a refund check for a bill that is already paid, simply these steps:

    First, record a Deposit of the vendor check:

     

    1. Go to the Banking menu, and select Make Deposits.
    2. If the Payments to Deposit window appears, click OK.
    3. select the Received from drop-down list in the Make Deposits window 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.
    6. (Optional) Enter a memo, check number, payment method, and class.
    7. Select Save & Close.

     

    Once done, record a Bill Credit for the refunded amount:

     

    1. From the Vendors menu, select Enter Bills.
    2. Click 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 on the original bill.
    5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
    6. Click Save and Close.

     

    Finally, link the deposit to the Bill Credit:

     

    1. Go o the Vendors menu, 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. Click Pay Selected Bills, then select Done.

     

    For more info, you can also check out this article on how to record vendor refunds depending on the appropriate scenarios: Record a vendor refund in QuickBooks Desktop.

     

    Additionally, you can run reports such as Purchases by Vendor Summary or Purchases by Vendor Detail. These will show you the company's total purchases per vendor. Or else, open the Transaction List by Vendor report. It'll show the list all of your transactions for each vendor. 

     

    To find these reports and search for others that may help, I recommend going from the Reports Centre directly. Go to the Reports menu in the top menu bar and then choose Report Centre. You're able to see more options by scrolling through the window or using keywords to search.

     

    I hope this helps. Reach out if there's anything I can assist you with. Have a good day. 

    K
    katrina10
    July 15, 2021

    Thank you, however this is not what I need. 

     

    The vendor refunded our credit card, did not send a check for us to deposit. 

     

    They overcharged us on a bill, so there is a credit on that bill showing on their account. 

     

    They then took that amount and refunded it to the credit card that was charged. 

     

    The credit is already on the vendor account. I can put the refund into the credit card account, but I need to attach the two, so they balance out. 

     

    Thank you

    L
    LunaSB
    February 11, 2022

    Hi- I followed these steps and ran into an issue.  The vendor currently has a few open credits.  I received a check for 1 of the credit memos.  When I followed these steps, it divided the deposit between the open credit memos.  Is there a way to specify that the credit memo should go towards the credit memo that matches the deposit?  Thank you for your help.

    R
    RCV
    February 11, 2022

    Thanks for checking in with us, LunaSB.

     

    I appreciate you for performing the steps provided by my colleague. How you enter the credit depends on how you record your purchases. If you enter bills to track your expenses, we can create a vendor credit and apply it to a bill. This makes sure the credit hits the expense account you use for this vendor. Here's how: 

    1. Click the + New Plus icon. 
    2. Select Vendor credit or Receive vendor credit.
    3. In the Vendor dropdown, choose your vendor.
    4. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
    5. Press Save and close.

     

    Then, apply a vendor credit toward any open or future bill. When you’re ready to use the credit, here’s how to do it.

    1. Click the + New Plus icon.
    2. Select Pay bills or Pay bill.
    3. Choose a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
    4. Complete the rest of the fields like you normally do.
    5. Press Save and close.

     

    For other options, check out this article: Handle vendor credits and refunds in QuickBooks Online. If you are trying to process a refund from the vendor, follow the steps in this article: Enter a refund from a vendor.

     

    In case you need help with another task in QuickBooks, please feel free to visit our general help topics page. This is where you can find related help articles, Community discussions, video tutorials, and more.

     

    You can always update us after performing the steps, as I want to ensure this is resolved for you. Just leave a comment below and I'll get back to you. Have a great day ahead. 

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