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MikeB70
May 13, 2020
Solved

Supplier Refund negative total.

  • May 13, 2020
  • 2 replies
  • 0 views

I've received a refund from a supplier and followed the steps as follows:

1 > Create a supplier credit

2 > Create bank deposit to record the refund

3 > Create a bill payment to link the credit to the deposit.

 

My concern is that before entering these transactions under Transaction List for the supplier the total at the bottom always showed £0.00. After entering the transactions above it now shows £-856.62 because the deposit and supplier credit both show £-428.31, and the Bill Payment shows £0.00.

 

Is this to be expected or have I made a mistake somewhere?

 

Thanks

Best answer by JasroV

Thanks for sharing the details, @MikeB70.

 

You got it right on how to record a supplier refund. As long as the open balance of your supplier is zero, you're on the right track. The negative amount shown below the Total column is the total amount of the transactions.

 

I've attached an image for visual reference. 

Furthermore, here's an article you can read to learn more about how to I handle supplier credits and refunds in QBO.

 

Additionally, do check our Manage Suppliers and Expenses page. There, you can read and learn some tips in managing your suppliers effectively.

 

Let me know if you have other concerns or questions. I'm always here to help you. Take care!

2 replies

JasroV
JasroVAnswer
May 13, 2020

Thanks for sharing the details, @MikeB70.

 

You got it right on how to record a supplier refund. As long as the open balance of your supplier is zero, you're on the right track. The negative amount shown below the Total column is the total amount of the transactions.

 

I've attached an image for visual reference. 

Furthermore, here's an article you can read to learn more about how to I handle supplier credits and refunds in QBO.

 

Additionally, do check our Manage Suppliers and Expenses page. There, you can read and learn some tips in managing your suppliers effectively.

 

Let me know if you have other concerns or questions. I'm always here to help you. Take care!

M
MikeB70Author
May 14, 2020

Thanks for the clarification. Not being an accountant or bookkeeper I was concerned about the two negative amounts for the credit and deposit. As long as that's how it's supposed to be then that's great.

R
rmw1246
July 12, 2021

This is incredibly confusing and surely is not how it should work. Before I saw your contribution, I must have wasted several hours on the issue including over an hour on live chat. It is totally ridiculous that Bill Payments and Deposits (refunds) should be shown with the same sign. I frequently use the export facility to put transactions into a spreadsheet and this is totally thrown by this illogicality. The accounting entries for a Bill Payment are Dr Creditor account and Cr Bank account. The accounting entries for a refund are Dr Bank Account and Cr Creditor account. This surely means that Bill payments should show as negative (which they do) and Refunds should show as positive (which they do not) in the supplier account. After all, that is how they show in the bank account and, if you look at the transactions, that is how they are stored.

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