Thanks for posting here, @cory222. I want to ensure you'll be able to record the refund in QuickBooks Online (QBO).
In QBO, creating a refund depends on how you enter the purchase transactions. For instance, you can record it as a bank deposit if you create an expense or use the write checks function. Here's how:
- Ensure you've already added the initial expense or check in QBO and assigned a Category or Account to it.
- Once done, select the + New button and choose Bank Deposit.
- Then, navigate to the Add funds to this deposit section and enter the amount refunded by the vendor.
- Select the Category/Account linked to the initial expense or check (check the Track returns for customer box, if this refund was for an expense that you linked to a customer or project).
- If you deposited customer payments for invoices into the bank account along with the vendor refund, add them in the Select the payments included in this deposit section.
On the other hand, you can create a Vendor credit to record a refund. Let me guide you on how:
- Select the + New button at the left and select Vendor credit.
- Pick the name of the Vendor.
- Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
- Click Save and close.
- Next, deposit the amount and use the Pay Bills to connect it to the vendor credit.
I also recommend reaching out to your accountant to further advise you on how to properly record the refund in QBO. This is also to ensure that your account for the transactions accurately. For reference, please read this article: Enter vendor credits and refunds in QuickBooks Online.
If you have any other concerns about recording refunds in QBO, please don't hesitate to post again here. Have a good one.
