how do i enter a refund from a supplier?

Hi Ellie22,

Welcome to the community!

You are correct - to show a refund from a supplier you would create a bank deposit to reflect the money returned back to the bank.

On the bank deposit, select the date and bank account, and under 'Add funds to this deposit' choose the supplier under 'Recieved from', the Accounts payable account under 'Account' and enter the amount.

The Accounts Payable account is a default account created by QuickBooks when generating a supplier transaction, you may alternatively see it named as 'Creditors'. You will  need to find the AP account QuickBooks automatically posts to and use this on the bank deposit. You can see this by going to the Chart of accounts and searching 'Creditors'. The type and details type of this will show as 'Creditors' here. 

For full details on recording a supplier refund you can follow the steps below: 

1. Create a supplier credit (+ icon -> supplier credit​)

2. Choose the correct date and supplier, put in the amount, choose VAT

3. Then click on the + icon again, and choose Bank Deposit, to show that the money went into your bank account

4. Choose the correct bank account on the top left corner, choose the date when the money actually hit your account

5. For Received from choose the correct supplier, for the account choose Creditors, put the amount in, choose no VAT

6. On the Supplier's page create cheque 

7. Tick the deposit against the supplier credit (this shows QuickBooks, that the supplier credit has been used, and money was received from the supplier), untick the bill and save and close

Thanks!