Supplier Refund

Hello there,

Recording a supplier refund in QuickBooks Online (QBO) is just easy. To do that, you can simply make a credit and deposit the amount you got from the said refund. I’m glad to show you the steps:

1. Open your QBO account.
2. Click + New, then choose Supplier credit.
3. Select the appropriate supplier.
4. Enter the Payment date, Amount, and Category.
5. Tap Save and close.

Once done, follow the outlined instructions below to create a deposit and link them through a cheque. Make sure to reflect the transaction to the correct expense account used for payment.

1. Press the + New button and then select Bank deposit.
2. In the Add funds to this deposit section, enter the following information:
   • The desired supplier in the Received From field
   • The Creditors account (Accounts Payable). You can consult your accountant if necessary to ensure everything is correct
   • The amount of the refund
   • In the VAT field, select No VAT (not inclusive/exclusive of tax)
3. Click Save and close after.
4. Next, tap the + New option again and pick Cheque.
5. Add the payee and select the bank account.
6. From the Add to Cheque section, click Add for the deposit and the supplier credit (make sure both are selected).
7. Select Save and close.

You can use this article to learn more about the process: Record a customer or supplier refund in QBO. It also includes a video for your visual reference.

If you need to track or review all amounts paid for this supplier for a particular period, check out this guide to achieve it: Run a report with supplier totals.

You can count on me if you have follow-up questions or other concerns related to supplier transactions. Just add them to your reply below. Have a good one and keep safe always!