RECEIVNG PAYMENT FROM VENDOR AS CREDIT, JOURNAL ENTRY, DEPOSIT

You can create a Bank Deposit posted to the A/P category to link the refund to the vendor credit, SSBODY. 

When depositing the payment, ensure that the account used is Account Payable so you can connect the refund to the vendor credit. Therefore, there is no need to create a Journal Entry, as linking the bank deposit to 'Pay Bills' will offset the amount.

Here's how you 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.
   • 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. Let me show you how:

1. Click the + New button, then choose Pay Bills.
2. Select 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. Click Save and close.
   
   

On the other hand, if the Vendor Credit don't exist in your vendor profile yet, you can check out this article on how to record it in QuickBooks: Enter vendor credits and refunds in QuickBooks Online.

If you need assistance managing your transactions, you can explore our QuickBooks Live Expert Assisted service. They're a group of experienced experts ready to help you smooth out your financial operations that fit your business needs.

Afterward, you can check out these articles on how to generate a report of all the payments made to a vendor throughout the year and save a monthly expense report:

• Run a report with vendor totals in QuickBooks Online
• Run and save a monthly expense report by vendor in QuickBooks Online

If you have any further questions regarding vendor payments. The Community team is here to help and ready to assist you with any concerns you may have.