How can I process a refund check from a vendor when the refund is deposited along with other checks?

insurance110 · ‎October 15, 2018

I've followed a few instructions to process a refund from a vendor, and am still a bit stuck about what to do about the actual refund deposit transaction that has downloaded from the bank. Sure I am misunderstanding something and hoping someone might be able to help.

I have received a refund from a vendor that we overpaid, in the form of a check which we have deposited along with a few other checks.

In QBO - I've created a Vendor credit for the refund amount, then created a deposit for that vendor set to accounts payable, and then used either Check/Expense/Pay Bills, to link the vendor credit to the deposit. That gives a zero balance transaction in the vendor expense account. But what would I do with my actual deposit transaction for the grouped checks including the actual vendor refund that has downloaded from our bank? Matches for the other checks in the bank deposit are coming up, but nothing comes up for the refund check.....

AldrinS · ‎October 15, 2018

Hello insurance110,

I can help you make sure that you process that refund check from the vendor.

We can easily resolve this because you are actually on the right track! You just need to add a few more steps to what you are already did in QuickBooks Online.

When you create the deposit, instead of creating a deposit just for that vendor, you can add all the details for your actual deposit transaction. You just need to make sure that you enter the correct information in each column (RECEIVED FROM, ACCOUNT, AMOUNT, etc.) for each line item. I've attached a screenshot for your reference.

This allows you to record the actual deposit transaction in QuickBooks Online, so that you can match it to your downloaded transaction. Not only that, but you can still link the deposit to the vendor credit to zero out the balance of this vendor.

That's it! You will be all set after recording the deposit.

I'm happy that I was able to help you out. You are always welcome to reach out to me again if you have any other questions.

View solution in original post

insurance110 · ‎October 15, 2018

Deleted comment

AldrinS · ‎October 15, 2018

Hello insurance110,

I can help you make sure that you process that refund check from the vendor.

We can easily resolve this because you are actually on the right track! You just need to add a few more steps to what you are already did in QuickBooks Online.

When you create the deposit, instead of creating a deposit just for that vendor, you can add all the details for your actual deposit transaction. You just need to make sure that you enter the correct information in each column (RECEIVED FROM, ACCOUNT, AMOUNT, etc.) for each line item. I've attached a screenshot for your reference.

This allows you to record the actual deposit transaction in QuickBooks Online, so that you can match it to your downloaded transaction. Not only that, but you can still link the deposit to the vendor credit to zero out the balance of this vendor.

That's it! You will be all set after recording the deposit.

I'm happy that I was able to help you out. You are always welcome to reach out to me again if you have any other questions.

insurance110 · ‎October 15, 2018

Hi IntuitAldrin,

Thanks a million for this quick and helpful response! This makes a lot more sense. I followed your directions and input all of the check details for the bulk deposit. The refund check deposit, I was then able to link with the vendor credit - I used "Expense" under Vendors in the + menu, to do that. And the downloaded deposit transaction from the bank matched with the set of deposits that I entered. Really appreciate your help!

CarynG · ‎December 17, 2018

i do not see a screen shot................

Anonymous · ‎December 17, 2018

Hello @insurance110 and @CarynG.

I appreciate your response. I'm glad the steps provided by my colleague @AldrinS worked for you @insurance110. Please let us know if you need anything else.

I can help provide you with some screenshots @CarynG. Here's how to create the deposit transaction in QBO:

Go to the (+) icon and select Bank Deposit.
Make sure to enter the correct account in the Account field, then scroll down to Add funds to this deposit.
Enter the details in each column for Received From. Account, Amount, etc. for each line item.
Click Save and close when done.

Please visit us again if you have additional questions about processing refund check and creating a deposit for a vendor. I'm here to help however I can. Have a good one.

CarynG · ‎December 17, 2018

thanks that part worked for me but the credit amount is still showing for the vendor so something is off.................

VivienJ · ‎December 17, 2018

Hi CarynG,

Thanks for the quick response! It's good you're able to follow the steps provided by my colleagues @AldrinS and @Anonymous.

Allow me to add up some steps so the vendor's credit will be zeroed out!

When you make a deposit, make sure to select Accounts Payable in the Account field. Then, create a Check, Expense or Pay Bills to link the vendor credit to the deposit.

To create a bank deposit with the Accounts Payable account:

Go to the Plus icon, then Bank Deposit.
Choose the Bank Account to deposit the fund.
Scroll down to the Add funds to this deposit section.
Select the name of the vendor in the Received From column.
Pick Accounts Payable in the Account column.
Enter other details, such as Amount, Description, Payment Method, and etc.
Click Save and close.

To link the deposit to the vendor credit:

Go to the Plus icon, select Expense, Check, or Pay Bills.
In the Choose a Payee field, pick the vendor's name.
An Add to Check/expense section will come out in the right side of the screen (see screenshot below).
Choose Add in both Deposit and Vendor Credit.
Click Save and Close.

These steps should close out the credit in your vendor's balance.

Let me know how things go, CarynG. I'm just a post away!

autoacc · ‎December 20, 2018

How does this work in QB Desktop? I've followed the steps below but cannot 'link the deposit to the bill credit'.

Scenario 3: The vendor sends a refund check that is not related to an existing bill

Examples include rebates, reward incentives, refunds, reimbursements, or checks issued by a vendor to cash out an existing credit.

Record a Deposit of the vendor check:
1. From the Banking menu, click Make Deposits.
2. If the Payments to Deposit window appears, click OK.
3. In the Make Deposits window, click the Received from drop-down and choose the vendor who sent you the refund.
4. In the From Account drop-down, select the appropriate Accounts Payableaccount.
5. In the Amount column, enter the actual amount of the Vendor check.
6. Enter the remaining information in the Deposit.
7. Click Save & Close.
Record a Bill Credit for the amount of the Vendor Check:
1. From the Vendors menu, select Enter Bills.
2. Select the Credit radio button to account for the return of goods.
3. Enter the Vendor name.
4. Click the Expenses Tab and enter the Accounts you would normally use for refunds.
  Note: If you are not sure which account account to select, Intuit recommends contacting your accounting professional.
5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated.)
6. Click Save & Close.
Link the Deposit to the Bill Credit:
1. From the Vendors menu, select Pay Bills.
2. Check the Deposit that matches the Vendor check amount.
3. Click Set Credits and apply the Bill Credit you created earlier then click Done.
4. Click Pay Selected Bills > Done.

MariaAlmaT · ‎December 21, 2018

Hello there, @autoacc.

Thanks for adding your concern on this thread. I can help you link the Deposit to the Bill Credit.

Here are some screenshots that will walk you through the detailed steps. Let's start with th transactions needed to successfully link the Deposit to the Bill Credit.

Sample Check.

Record a Deposit of the vendor check.

Record a Bill Credit for the amount of the Vendor Check.

Link the Deposit to the Bill Credit.

This information should help you link the Deposit to the Bill Credit. Keep me posted on this, and I'll be right here if you need anything else. Have a great rest of your day!

SMG · ‎January 09, 2019

this is not helping me at all. I have created a vendor credit and a vendor deposit. Everything is linked and showing appropriately except my downloaded check is sitting in the pre-register for the bank and there is still nothing to link it to. Can anyone help me?

Charies_M · ‎January 09, 2019

Hi there, SMG.

I can help you link downloaded check with your existing transaction in QuickBooks.

You can manually match your downloaded transactions and make sure to select the Match to Existing Transaction and choose the transaction you want to match with the deposit.

Here's how:

Go to Banking.
Choose Bank Feeds.
Click Bank Feeds Center.
Choose a bank account.
Click the Transaction List button.
From the Action drop down arrow, choose Match to Existing Transaction.
Choose the transaction you'll want to match then click Confirm Match.
Click Yes.

I've attached some screenshots below so you can have a better view.

To learn more about matching transactions in QuickBooks, you can check out this article: Add and match Bank Feed transactions.

That's it. Should you need more help with matching downloaded transactions in QuickBooks, just let me know. I'm always here to help you out.

SMG · ‎January 09, 2019

I decided to delete the vendor credit. I created a deposit from the vendor on the "cost of goods sold" account and matched it to the check. The vendor record doesn’t show the transaction for some reason but the check is in the check register and it has the deposit slip as a match. I put a note on the original purchase invoice indicating there was a refund applied and noted the date so I could find it if need be and the vendor shows a 0 balance.

I might try again next time I have one, but this seems too complicated.

Thank you for trying to help.

cipgifts · ‎May 20, 2019

I found a better answer to this same question after searching off and on for months
https://quickbooks.intuit.com/community/Payments/How-to-enter-a-refund-charge-on-credit-card-for-ret...

amd18 · ‎September 05, 2019

Hello, these steps worked for me to tie the Deposit to the Vendor Credit. But now, the Vendor Detail shows a credit twice (one for the deposit and one for the vendor credit).

Is there any way to fix this?

{screenshot attached}

Charies_M · ‎September 05, 2019

Hello there, amd18.

Let me bring clarifications with your concern about the process of vendor refund in QuickBooks Online (QBO).

No need to worry about the two credit transactions reflecting on your Vendor Transaction List for it is normal. As long as you get a zero balance, you're doing it right.

You can run the Transaction List by Vendor report to keep track of the transactions.

Here's how:

Go to Reports. from the left menu.
Select the Transaction List by Vendor.
You can also click the Customize button to filter the information.
Click Run report.

Should you need reference on how to customize reports in QBO, you can check out this article: https://quickbooks.intuit.com/tutorials/lessons/custom-reports/

I want to make sure this gets resolved. If you have other questions just fill me in and I'll be around to help.

SandyP · ‎September 03, 2020

I need help. My assistant quit and all work was on her laptop. I have a new Microsoft laptop and we were supposed to be in a "shared" setup. I need to get QB installed on this new laptop and I need to access what data she had entered into QB so I can continue with the work now that she is unavailable and unwilling to communicate with me.

Tori B · ‎September 03, 2020

Hey there, @SandyP.

Thanks for following the thread.

To clarify, how is your file shared? Is it on a local drive, such as the C: drive? Or is the file shared through a virtual server?

If the file is shared locally, it will depend on which computer holds the file. For example, if your assistant's computer holds the file and she took her laptop, you will need to get the file from her computer. However, if the file is on a local server or your computer, you can still access it. I recommend reaching out to your IT professional. This way, they can track down your company file and reset the sharing folder.

I've included the link to install QuickBooks below. I've also included a link that explains file sharing.

How to install QuickBooks

What to do if you can't open your company file

I look forward to your reply and getting this resolved with you every step of the way. Let me know if you have further questions or concerns. You can reach out to the Community at any time. Take care!

amelia128 · ‎September 17, 2020

How would you do this in Quickbooks Desktop Pro 2019?

Jen_D · ‎September 17, 2020

Hey there, @amelia128,

It looks like there are a mix of topics in this discussion. May I know which exact process on this thread would you want to get further guidance with?

If you're referring to the main topic about creating a vendor refund and applying it to a bill, here are the steps to do it in QuickBooks Pro Desktop 2019:

Go to the Vendors menu and choose Enter Bill.
At the top of the bill, click the Credit radio button.
Once the refund detail is complete, click Save & Close.
When you want to apply the credit as a payment to a bill, go to the Pay Bills menu.
Mark the bill you want to pay then select Set Credits.
On the next window, mark the credit you created from the Credits tab.
Hit Done and then Pay Selected Bills.

Use this article for further guidance: Record a vendor refund in QuickBooks Desktop

If you're referring to a different topic, let me know in the comment below. I'll be right here to help you further. Have a good one!

hmcm · ‎February 20, 2021

Any idea what to do when someone deposits ALL their refund checks at once and QB won't let you use "Accounts Payable" more than once per transaction? I've tried using the Clearing account, but it won't come up in Pay Bills when you go to link them.. It has to be balanced from a bill credit because we itemize insurance, temp power, etc. for each property. This has been driving me nuts.. please help.

JessT · ‎February 20, 2021

There is a way for this, hmcm.

You can make a journal entry for each Accounts Payable amount. A debit to Undeposited Funds and credit to A/P. That way, you can combine them into one deposit. After this, you can link the JEs to the Bill Credit.

If you have other questions in mind, you can always go back to this thread. Have a good one!

hmcm · ‎February 23, 2021

Thank you! That is actually much easier than what I was doing (creating deposits into my Clearing account from Accounts Payable for each amount lol).. I'll add this step to my process!

Gs1786 · ‎November 21, 2023

Why does this not take the credit off the aging?

ZackE · ‎November 21, 2023

Thanks for getting involved with this thread, Gs1786.

It's possible you may not have selected the correct customer when creating your deposit. I'd recommend editing the deposit and confirming it has an appropriate customer specified in its Received from field.

If you've already confirmed your deposit has the correct customer assigned to it, but you're still seeing it show up on your aging report, you'll want to work with an accounting professional to identify why it's still showing on the report.

If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

Go to our Find a ProAdvisor page.
Use the City or ZIP search field to specify a location.
Select Find a ProAdvisor.
Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

Once you've found an accountant, they can be contacted through their Send a message form:

Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
Hit Send message.

I've also included a detailed resource about working with aging reports which may come in handy moving forward: Run an accounts receivable aging report

Please don't hesitate to send a reply if there's any additional questions. Have an awesome Tuesday!

Topics

Training

Community

Resources

How can I process a refund check from a vendor when the refund is deposited along with other checks?