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Madara107
November 7, 2021
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Question - How to apply received refund to credit memo

  • November 7, 2021
  • 1 reply
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We have one credit memo record, which was given due to our overpayment to the vendor in the past. The vendor decided to make us a refund for balance and we received a refund check. Which module should be used and how to record? This is such a basic question, but I appreciate if you can help.

Best answer by AlexV

Hello Madara107!

 

I can show you how to link the vendor credit to the refund. Let me assist you.

 

You'll need to record a deposit since you already created a credit so that we can link them. Follow these steps:

  1. Go to the + New button and select Bank deposit.
  2. Select Account where you got the refund.
  3. From the Add funds to this deposit section, select the vendor on the Received from column, Accounts Payable under the Account column, Payment Method, and enter the Amount.
  4. Tap Save and close.

 

Once done, use the pay bills feature to link them.

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

 

Lastly, I added this link if you need a guide on how to balance your accounts: Reconcile an account in QuickBooks Online.

 

Leave a comment below if you need additional help with vendor credit and refund. I'll be here!

1 reply

AlexV
AlexVAnswer
November 7, 2021

Hello Madara107!

 

I can show you how to link the vendor credit to the refund. Let me assist you.

 

You'll need to record a deposit since you already created a credit so that we can link them. Follow these steps:

  1. Go to the + New button and select Bank deposit.
  2. Select Account where you got the refund.
  3. From the Add funds to this deposit section, select the vendor on the Received from column, Accounts Payable under the Account column, Payment Method, and enter the Amount.
  4. Tap Save and close.

 

Once done, use the pay bills feature to link them.

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

 

Lastly, I added this link if you need a guide on how to balance your accounts: Reconcile an account in QuickBooks Online.

 

Leave a comment below if you need additional help with vendor credit and refund. I'll be here!

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