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PhoenixEngine
November 22, 2022
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Advanced Payments to Suppliers and then supplier does not send all Items.

  • November 22, 2022
  • 1 reply
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Hello 

 

So here is the issue that I am facing.

 

I ordered online from a supplier and paid via PayPal.

I then allocated the Payment From PayPal as a Cheque to the supplier under Creditors.

This is how I normally deal with it and when the items arrive with the invoice we enter the invoice and use the cheque to pay it. 

This all works just fine. 

 

Now I have run into an issue where I ordered online and the supplier then later phoned and said one of the items are no longer avaliable. 

So they refunded an amount of the original payment.

 

Now then this is my issue. 

 

There is no Invoice for the total amount that was originally paid. That means that I cannot simply create a Supplier Credit as there is nothing on an invoice to credit. 

 

So for now I used the original cheque to pay the reduced actual invoice that arrived. Then when the Credit arrived via PayPal I added that as a cheque to the supplier.

That means the supplier account is now at Zero but it shows as an amount overdue in relation to either the Cheque amount left over from the original payment or the cheque deposit from the refund not sure at this stage.

 

Hopefully what I have explained is clear.

 

I just really want to know how to deal with all the payments without throwing everything out.

Best answer by MJoy_D

I can help you with recording the refund you've received, @PhoenixEngine.

 

You can create a supplier credit for this refund. Then, enter a Bank deposit and a Cheque for the refund amount. Once done, use Pay Bills to connect the bank deposit to the supplier credit. 

 

Here's how to record a supplier credit:

 

  1. Go to the + New and choose Supplier credit.
  2. In the Supplier field, select the supplier.
  3. Provide the Payment date, Amount, and Category (category, product, or service you’re getting credit for).
  4. Click on Save and close.

 

Deposit the money you got from the refund:

 

  1. Go back to the + New and select Bank deposit.
  2. In the Add funds to this deposit section, enter the following information:
  • In the Received From field, select or enter the desired supplier.
  • In the Account field, select the Creditors account (Accounts payable).
  • In the Amount field, enter the amount of the refund.
  • In the VAT field, select No VAT (not inclusive/exclusive of tax).
  • Select Save and Close.
  1. Go back to the + New and select Cheque.
  2. Add the Payee and select the Bank Account.
  3. From the Add to Cheque section, select Add for the deposit.
  4. The balance should be 0 as they will cancel each other out.
  5. Click on Save and close.
  6. If you've added your PayPal to your Online Banking, go to Bookkeeping, select Transactions, then match the record found on the Bank transactions page.

 

Use Pay Bills to connect the bank deposit to the supplier credit:

 

  1. Go to the + New and select Pay bills.
  2. Choose the bank deposit you just created. You’ll see the amount of the supplier credit in the Credit Applied field. The Total payment should be £0.00.
  3. Click on Save and close.

 

Check out this article for more information on how to record a supplier refund based on different scenarios: Record a customer refund or supplier refund in QuickBooks Online.

 

Here's more information on how to record the bill you got from a supplier and payment you've made either with a credit card, cash, or a cheque: Enter bills and record bill payments in QuickBooks Online.

 

Let me know if you have further questions about recording your refund transactions by leaving a reply below. Keep safe, and have a wonderful day!

1 reply

MJoy_D
MJoy_DAnswer
November 22, 2022

I can help you with recording the refund you've received, @PhoenixEngine.

 

You can create a supplier credit for this refund. Then, enter a Bank deposit and a Cheque for the refund amount. Once done, use Pay Bills to connect the bank deposit to the supplier credit. 

 

Here's how to record a supplier credit:

 

  1. Go to the + New and choose Supplier credit.
  2. In the Supplier field, select the supplier.
  3. Provide the Payment date, Amount, and Category (category, product, or service you’re getting credit for).
  4. Click on Save and close.

 

Deposit the money you got from the refund:

 

  1. Go back to the + New and select Bank deposit.
  2. In the Add funds to this deposit section, enter the following information:
  • In the Received From field, select or enter the desired supplier.
  • In the Account field, select the Creditors account (Accounts payable).
  • In the Amount field, enter the amount of the refund.
  • In the VAT field, select No VAT (not inclusive/exclusive of tax).
  • Select Save and Close.
  1. Go back to the + New and select Cheque.
  2. Add the Payee and select the Bank Account.
  3. From the Add to Cheque section, select Add for the deposit.
  4. The balance should be 0 as they will cancel each other out.
  5. Click on Save and close.
  6. If you've added your PayPal to your Online Banking, go to Bookkeeping, select Transactions, then match the record found on the Bank transactions page.

 

Use Pay Bills to connect the bank deposit to the supplier credit:

 

  1. Go to the + New and select Pay bills.
  2. Choose the bank deposit you just created. You’ll see the amount of the supplier credit in the Credit Applied field. The Total payment should be £0.00.
  3. Click on Save and close.

 

Check out this article for more information on how to record a supplier refund based on different scenarios: Record a customer refund or supplier refund in QuickBooks Online.

 

Here's more information on how to record the bill you got from a supplier and payment you've made either with a credit card, cash, or a cheque: Enter bills and record bill payments in QuickBooks Online.

 

Let me know if you have further questions about recording your refund transactions by leaving a reply below. Keep safe, and have a wonderful day!

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