Hello there, caw7557.
I'll share some information on how you can effectively manage vendor refunds in QuickBooks Online (QBO).
In QBO, how you enter the refund depends on how you record your purchases. Ideally, you'll only use a vendor credit for a refund if you originally added a bill. This will allow you to apply the vendor credit toward any open or future bill.
Based on the details you've shared, you'll need to create a credit card credit instead. This will reflect on your credit card balance in QBO.
Before doing so, make sure to delete the vendor credit that you've previously added first. Once done, here's how to create a credit card credit:
- In QBO, go to the + New option at the upper left.
- Select Credit card credit.
- In the Payee field, select the appropriate vendor.
- From the Bank/Credit account ▼ dropdown, choose the credit card where you received the refund.
- Enter the Payment date, refund Amount, Tax, and Category. Note: The category used here is the original expense account
- Once done, hit Save and close.
To learn more about managing and recording refunds or credits from a vendor in QBO, check out this article: Enter vendor credits and refunds in QuickBooks Online.
I'm also adding this article that tackles running vendor report for future reference: Run a report with vendor totals.
Please let me know if you have additional questions about this or anything else. I'll be here to assist. Take care.
