Do you know ‘How to enter a refund from a vendor in QuickBooks Online?’ Here in this blog, we are going to know the procedure for the above-mentioned query. If you don’t how to do it, and want to know the solution, then read this blog carefully, and stay with us for the new updates.
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We all know that, in QuickBooks Online vendor credits are used to records returns to vendor. But do you know it also used to records the details of refunds from vendors? Yes, you can enter a refund from a vendor in QuickBooks Online. There are different situations to record a refund from a vendor in QuickBooks Online, you have to make sure that, which kind of method is applicable for you, before following any procedure. If you are not sure about it, then you can get help from your account.
Remember that, recording of refund from a vendor in QuickBooks is totally different from the recording of QuickBooks vendor refund process.
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Procedure to Enter a Refund From a Vendor in QuickBooks Online
We have provided three types of solutions for this query. All the solutions are provided for different situations, you just have to choose the appropriate or suitable solution according to your situation. Here the solutions are given in the below:
Steps to enter or record the Credit of Vendor:
This is the first step to enter a refund from a vendor in QuickBooks Online, and in this step, we can ensure that the credit hits the expense account for the vendor. Let’s proceed for the steps:-
- First of all, go to the ‘+New’ option, and click on it.
- After clicking on the ‘+ New’ option you can see an option for ‘Vendor Credit’, just click on it.
- Or select the ‘Receive vendor credit’ option.
- Now select the vendor from the ‘Vendor’ drop-down.
- Enter your item details or the category details according to your purchase type with the vendor.
- At last, click on the ‘Save and Close’ option.
Deposit the Refunded Money:
In this step, you have to deposit the money you got from the refund.
- Click on the ‘+New’ option, and then on the ‘Bank Deposit’ option.
- Now from the ‘Account’ drop-down menu, choose the account, where you got the refund.
- Go to the ‘Add Funds’ section following fields given in the table.
|Field Name||What to Fill Out|
|Received From||In this field select the vendor, who gave you a refund.|
|Account||In the ‘Account’ field’ choose Accounts Payable, so that you can tie the refund to the credit of the vendor.|
|Payment Method||Mention the payment method your vendor used to refund you.|
|Amount||Enter the refund amount in the ‘Amount’ field.|
- Then save all the changes and close it.
Connect the Bank Deposit to the Vendor Credit:
Connect the bank deposit to the vendor credit by using ‘Pay Bills’, in the last step:
- Click on the ‘+New’ option, and go for the ‘Pay Bills’ option.
- Choose the bank deposit, which you have created.
- Now in the ‘Credit Applied’ field, you will see the credit amount of vendor. And remember that, the total payment should be $0.00.
- At last, click on the ‘Save and Close’ option to save all the changes.
In the above article, we tried our best to cover all the methods to record or enter a refund from a vendor in QuickBooks Online. You can apply any one of the solutions as per your need. We hope, you will like this blog, and will be able to perform the steps without any hassles. Still if in case, you are unable to follow the instructions or unable to understand the blog, then you can get our ProAdvisor Support to clear your all kind of doubts regarding this blog, at any time and anywhere through the toll-free number +1-844-405-0904.