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January 20, 2021
Question

How do I enter the refunds from store? I would like my total of categories (materials / supplies, etc.) to be representative.

  • January 20, 2021
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1 reply

Rebecca R
January 20, 2021

Hi there Kim! 

 

Welcome to the QuickBooks Community! I'm glad to hear that you're looking for the most accurate way to record a supplier refund in your books. It's important that this is done correctly, and luckily in QuickBooks Online it's an easy 3-step process that I'm happy to go over.

 

The first step is to enter a Supplier Credit in the amount and with the correct category or item details for the refund you received. Follow these steps to complete the first part of this process:

 

  1. Hit the + New button.
  2. Choose Supplier credit.
  3. Selet your supplier from the Supplier dropdown.
  4. Enter the Category details as per the items that were refunded.
  5. Hit Save and close to save the Supplier credit.

 

The next step is to deposit the money you received from the refund. Here's how:

 

  1. Hit the + New button once again and choose Bank Deposit.
  2. From the Account dropdown, choose the account where you got the refund, such as your chequing or savings account.
  3. Fill out the fields in the Add funds to this deposit as follows. In the Received from section choose the Supplier who refunded you. Selet Accounts Payable for the Account in order to connect the refund to the supplier credit. Choose the Payment Method used by your supplier to refund you, and lastly enter the Amount.
  4. Don't forget to Save and close the Deposit when you're finished.

 

Finally, you'll need to use the Pay Bills feature in order to connect your Bank Deposit to the Supplier Credit that you recorded. This keeps your expenses accurate in QuickBooks Online. Simply use the + New button to Pay Bills. Choose the bank deposit that was created and you'll notice the amount of the Supplier Credit in the Credit Applied field. The bill payment should be $0.00. Remember to Save and close to save your transaction. 

 

These steps and other great articles can be found here: Enter a refund from a supplier.

 

Let me know if you need additional support on this, as I'd be happy to give you a hand. Have a great day!