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Record an inventory return to a vendor I purchased from and then categorize bank transaction

Forum|Forum|2 years ago
December 30, 2023
1 reply
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I feel like there should be a simple answer for this, but I have scoured the internet and QBO community and can't find a solution. Many are CLOSE to an answer but nothing exact. I'm going to use a real world example and hopefully I can find someone to help.

I bought $28.75 worth of inventory (shirts) from Amazon. It went on my business credit card, which I matched on QBO to Inventory which went on my books as inventory - everything good so far. 2 weeks later, I had to return the shirts as they sent me the wrong items. This then shows up on my transactions as a $28.75 credit to my credit card. Naturally, I would want to categorize that as inventory and have it remove $28.75 from my inventory since it was returned....HOWEVER...you are not able to put a positive credit into inventory. This is where the issue arises. I now have the $28.75 in my inventory that I have returned, but I am not able to categorize as a return to take the inventory back down on my books by that amount.

There was a 'solution' I found in another post where I could add a credit card credit with the vendor as the payee. This 'worked' and brought down my inventory, however, I was still left with the bank transaction I could not 'categorize' of $28.75. That is still sitting in my uncategorized bucket and QBO will not find the credit card credit as a match even though the Vendor, Amount and Date are all the same.

Can someone please help?

QuickBooks Online

Best answer by Rainflurry

@joefake1

"The credit card credit was newly created and has NOT been reconciled, but QBO will still not allow me to match to that transaction. Even though it's not allowing that and it's not reconciled, can I still exclude? Is the matching not important?"

Yes, you can exclude it. If you recorded the credit card credit and it decreased your inventory and decreased your cc balance, then you do not need to match the transaction.

JessT

Hi joefake1,

You're on the right track. Handling inventory refunds to a credit card is straightforward. For instance, if you bought an inventory item for $89.99 and then returned it to the vendor, you just need to create a credit card credit using the same item and amount. This will make the credit card credit a matching entry.

Logging the item I bought with my credit card.

Logging the returned inventory and the refund I got from my vendor.

The credit card credit matches the downloaded credit card transaction.

So, the question now is: why isn't your credit card credit seen as a matching entry? First, check your credit card register. If the credit is marked as Reconciled (R), it won't be available for matching. If this is so, just exclude the uncategorized transaction.

Another reason could be that it's recorded under a different credit card account. If this is so, just open the credit card credit transaction and change the credit card account.

If you have other questions in mind, feel free to go back to this thread.

J

joefake1Author

Hi JessT,

Thank you for responding.

Yes, understood on the credit card credit transaction piece.

My issue is only with the matching of the transactions. The credit card credit was newly created and has NOT been reconciled, but QBO will still not allow me to match to that transaction. Even though it's not allowing that and it's not reconciled, can I still exclude? Is the matching not important?

RainflurryAnswer

@joefake1

"The credit card credit was newly created and has NOT been reconciled, but QBO will still not allow me to match to that transaction. Even though it's not allowing that and it's not reconciled, can I still exclude? Is the matching not important?"

Yes, you can exclude it. If you recorded the credit card credit and it decreased your inventory and decreased your cc balance, then you do not need to match the transaction.

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