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A
arkvalleyinfo
October 16, 2018
Solved

How do I record the return of an item that was purchased with a credit card, but was given store credit for the refunded money.

  • October 16, 2018
  • 2 replies
  • 0 views

We purchased an item from Home Depot with a credit card.  We later returned the item and Home Depot refunded the money with an in store credit/gift card.  I also need to record items purchased with this gift card.

Best answer by vpcontroller

You will need to use "Credit Card Credit" (create + sign > Vendors > Credit Card Credit) as designated form in QBO, to handle return with gift card transaction.

  • Select Vendor = Home Depot
  • Add New Home Depot Gift Card (as Credit Card type) > notice once added new balance should show zero
  • Account = same account originally used when entered for purchased items
  • Amount = gift card store credit amount
  • Save > notice once saved balance should show negative amount equivalent to store credit
  • Save and Close

When you start using the Gift Card for purchases, go to Expense Form  (create + sign > Vendors > Expense) and select Home Depot Gift Card from drop down list and use it as a form of payment.


Once you start using negative balance should go down.

2 replies

vpcontroller
vpcontrollerAnswer
October 16, 2018

You will need to use "Credit Card Credit" (create + sign > Vendors > Credit Card Credit) as designated form in QBO, to handle return with gift card transaction.

  • Select Vendor = Home Depot
  • Add New Home Depot Gift Card (as Credit Card type) > notice once added new balance should show zero
  • Account = same account originally used when entered for purchased items
  • Amount = gift card store credit amount
  • Save > notice once saved balance should show negative amount equivalent to store credit
  • Save and Close

When you start using the Gift Card for purchases, go to Expense Form  (create + sign > Vendors > Expense) and select Home Depot Gift Card from drop down list and use it as a form of payment.


Once you start using negative balance should go down.

    A
    arkvalleyinfoAuthor
    October 16, 2018
    Could you this be explain to someone who is not an accountant? Beginner.
    A
    arkvalleyinfoAuthor
    October 16, 2018

    Store credit / gift cards are best treated as their own bank or credit card account (or cash account).  This case of a return is special, in that you need to enter a transaction for the opening balance that is basically a deposit (if you use a bank account) or a credit (if you prefer the interface for a credit card) - and which reverses the expense of the originally charged item.  E.g., if the returned item was for expense account "Tools", then the deposit would refer to "Tools" and the memo list the returned item (perhaps even attach a copy of the receipt as an attachment).

    Then, just enter purchases against the balance as electronic checks (e.g.) if you used a bank account, or as a charge if you called the gift card/store credit a 'credit card' account.

    Because gift cards / store credits can only be used at specific stores, it is best to create a different account for each store involved in order to track them.  My view anyway.

    S
    seswende
    January 29, 2020

    We have reloadable gift/Visa cards for our employees to use, and also track costs charged to each Job.  When I record a credit like this, it is essentially a deposit, but the deposit screen doesn't give the option to reduce the cost charged to that specific Job.  How can I do this to reduce the job cost?

    Rose-A
    Rose-A
    January 29, 2020

    Hi, seswende.

     

    Could you please tell me which amount are you trying to reduce? Is it the cost or the credit amount?

     

    This way I'll be able to provide you with the right issue resolution and ensure that your questions are addressed accordingly.

     

    I look forward to your reply. I'm always here to lend a hand.

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