I received a credit card refund from a vendor. How do I categorize that and add that to my ledger?

Hey there, @RefundMe. Thanks for joining the Community.

I'm happy to help you with your vendor refund. It's super quick and takes just a moment. Take a look:

Create a vendor credit

1. Select the + New button.
2. Select Vendor Credit.
3. In the Vendor drop-down menu, select 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 a credit for.
5. Select Save and close.

Apply vendor credits to a bill

You can 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. Select the + New button.
2. Select Pay Bills.
3. Select 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.

That's it! If you happen to just enter expenses or write checks to your vendors, you can check out this article: Enter a credit from a vendor

Please touch base with us here if there's anything else you need, I'm determined to ensure your success. Have a great week!

I am having a similar problem and not finding an answer (to a problem that should be simple.) 

I make purchases at a local store. When I m get my  credit card statement there are always several small refunds for less that a dollar. Such as $0.31 , $0.80, $0.24. 

I have no idea why this happens. But I need to find a way to apply the credits in my credit card transactions.

Right now I am showing it as a credit card payment from personal expense. I have no idea how this affects my books though.

HOW do I apply credits to my credit card in QB??????

Thanks for keeping us updated @mm np.

You may have entered a duplicate credit card credit. That said, we'll need to review the transactions made, then proceed to the Chart of accounts and delete the duplicates. Please proceed as follows:

View vendor transaction: 

1. Go to Get paid & pay or Expenses, then select Vendors.
2. Select the affected vendor.
3. Under the Transaction List, you should see all transactions for this vendor.

We can go ahead and delete the unnecessary duplicates. Here's how:

1. On the left panel, click the Accounting tab.
2. Select Chart of Accounts.
3. Locate the affected account that creates duplicate transactions, then select the View register under the Action column to review them.
4. Click each transaction and then select the Delete button.

As always, we encourage you working with your accountant to keep things accurate and guide you with the remaining process.

Moreover, I'd recommend reconciling your accounts every month to early detect errors and monitor the growth of your business. For more details, you can check out this article: Reconcile an account in QuickBooks Online. 

I'll be right here to continue helping if you have any other concerns or follow-up questions. As always, assistance is just a post away.

I don't believe qbo agents do not know how to work with bank feeds.  What they do not understand is when you are working with bank feeds, you are not going to "New" and creating anything.  You are working from the checking account feed or the credit card account feed.  When you have a charge come in on your credit card feed, it comes in as a positive amount.  When you categorize and save, it saves automatically as an expense.  You do not have to create anything.  QBO does it for you.  When you return a product to a vendor it shows up in your credit card account feed for review as a negative number.  At this point again, you do not create anything "New".  This is suppose to be automated so that it streamlines the process.  Im assuming that this is something fairly new for QBO because I haven't corresponded with anyone in customer service that isn't doing it old school and are not familiar how bank feeds work.  To make it simple, I simply categorize the credit that comes in as a negative number as the same category I categorized for the initial positive transaction.  This way my project reports and expenses numbers are correct.  For example... I purchased something from Home Depot for a job (project).  The credit card feed from Home Depot showed up for review as $100.00.  I categorized this transaction from the review screen as Cost of Goods:Supplies and Materials, assign it to the project and click record.  QBO automatically creates that expense for me.  Three weeks later, we did not need all the material we purchased for the Job (project) so I returned $50.00 worth of products.  The next day that return transaction from Home Depot is in my credit card bank feed as a negative number because it was a credit.  I categorize it as Cost of Good:Supplies and Materials, choose the project and click record.  QBO records it as a negative expense.  But that is ok because it will total out correctly in the end because when it was all said and done I only spent $50 out of that $100 that was originally charged.  So when I pull up the project report it shows me that I only spent $50 on Cost of Goods:Supplies and Materials. And if I look at my total expenses, that credit has been taken out of the total expense category as well.  This may not be the old school accounting way to do things, but it is easy and provides that same number in the end.  The only issue that I have encountered by doing it this way is when I match receipts.  When I upload the refund receipt, QBO will not recognize it as a negative number so it will not match without me opening the receipt and changing the number to a negative. Then it will match and the receipt is attached to that refund transaction.  Hope this helps anyone who is working in QBO through bank feeds.  The wonderful thing is when you strictly using bank feeds you don't have to deal with miss types or entries.  Plus when you reconcile bank statements, it is rare that they don't reconcile first time!