I see, Sibyl. No problem.
In this instance you can record the refund as a deposit. This is explained in steps #2 and #3 in the "Deposit a vendor credit when no expense has occurred" section of the Enter vendor credits and refunds in QuickBooks Online article.
Here's how:
1. Click the + New button.
2. Select Bank deposit.
3. In the Account dropdown menu, select the account where you got the refund.
4. Fill out the following fields in the n the Add funds to this deposit section:
- Received from: Select the vendor who gave you a refund.
- Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
- Payment method: Enter the method your vendor used to refund you.
- Amount: Enter the amount of your refund.
The you're ready to use Pay Bills to connect the bank deposit to the vendor credit:
1. Click + New.
2. Select Pay bills.
3. Choose the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be US $0.00.
4. Click Save and close.
That will get the credit taken care of. I'll be here if you have any other questions!
