How to Record QuickBooks Vendor Refund?

Whenever QuickBooks vendor refunds any check for a bill, he/she needs to record it. And this blog will help you to record the QuickBooks vendor refund with different solutions. Without wasting any time, let’s proceed for the procedure:

Save Time & Effort
Get help from expert

Get your accounting work done by experienced accountants. Fix all your accounting software errors & problems. Dial our toll-free number +1-877-715-0222.

Procedure to Record QuickBooks vendor Refund

To make it easier for users to understand the blog, we have provided different types of solutions according to some situations. You just have to choose the suitable situation and to follow the solution provided by us. Let’s start reading:

Situation 1 – Whenever a Vendor send you a refund check for a bill which is already paid

1. The record process of vendor check:

  • Go to the ‘Banking’ option and select theMake Deposits‘.
  • When the payment to Deposit window comes, select ‘Ok’.
  • Select Received from the drop-down menu under the make deposit window, and select the vendor who sends you the refund
  • From drop-down to the ‘From of account’ select the Accounts payable account in the vendor.
  • You can mention the correct amount of Vendor and then, check in the Amount column.
  • Mention a memo, check number, payment method, and class ( this is an optional step).
  • Click Save and close.

2. Record a QuickBooks bill credit for the refunded amount

  • Go to vendors menu and then, select the option of entering bills.
  • Select the given option of the credit radio button to accounts for the return of goods
  • Mention the vendor name into the QuickBooks desktop.
  • Select the given option of Expenses tab and mention the Accounts on the original bill
  • In the Amount column, enter the appropriate amount for each Account
  • Click on the option of ‘Save and close’.

3. Attach the deposit to Bill credit:

  • Go to the option of Vendors and then Select Pay Bills.
  • Cross-check the deposit which goes with the Vendor check amount.
  • Select the set credits and apply the bill credit which is mentioned earlier and then select done
  • Select Pay selected Bills >> Done.

Situation 2 – Whenever a Vendor send a refund check for returned inventory items

1. Record a Deposit of the vendor check

  • Go to Banking menu>>select make deposits.
  • Select OK under Payment to deposit window if appears.
  • Select the given option of Received from the drop-down under the make deposit window and choose the vendor who sent you the refund to the QuickBooks desktop.
  • Select the From account from the drop-down and select the proper accounts payable account.
  • In the amount, the column mentions the actual amount of the vendor check.
  • Mention the remaining information in the Deposit.
  • Save and close.

2. How to record a Bill credit for the returned items

  • Go to Vendor menu >>select enter bills
  • Select the given option of the credit radio button to the account to return the goods
  • Mention the vendor name into the QuickBooks Desktop.
  • Then, select the item tab of the credit bill of the returned items.
  • After that, mention the returned items with the same amount as in refund check
  • Save and close
  • Go to vendor menu>>select pay bills
  • Verify the deposit that goes with the vendor check amount of the credit deposit. 
  • Select the option of set credits, apply for the Bill credit and you have created and selected done.
  • Select Pay select bills and select ‘Done’.

Situation 3 – Vendor send refund check which does not relate to existing bills

1. How to record a deposit of the vendor check:

  • Banking menu>>Select Make deposits
  • Select OK if the Payments to Deposits window comes
  • Select the received from the drop-down method in the deposit making window and select the vendor who sends you to refund of the vendor.
  • After that, select the appropriate account payable account in from the account dropdown of the vendor system.
  • In the amount, column mention the actual amount of vendor check
  • Mention the remaining information in deposit
  • Save and close

2. How to record a bill credit for the amount of vendor check

  • Go to vendor menu then, select enter bills
  • After that, select the button of credit radio to account for the return of goods to the vendor of the QuickBooks desktop.
  • Mention the vendor name of the QuickBooks Desktop.
  • Then, the given option on your display and then select the expenses tab option and then enter the Accounts which you use for refunds with the amount of the vendor.
  • In the amount column, mention the amount for each account
  • Save and close.

3. Attach the settled or deposit to the bill credit

  • Go to Vendor menu>>select Pay bills
  • Check the deposits that match the vendor check amount
  • Select set credit cards and apply for the bills Credit created earlier and then select done
  • Select pay selected Bills, and then select done

Situation 4 – On the behalf of the original Vendor the vendor sends a refund check for clear the bill

1. For the process of sending a refund check to create a deposit for the vendor:

  • Firstly, Go to the option of the Banking menu, and then select the Make Deposit option which is given.
  • If you see the Payments to Deposit window appears in your system, then select OK.
  • When you see the Make Deposits window, you select the Received from the drop-down of the option and choose the vendor option who sent you the refund amount or bills.
  • When you come on the From Account drop-down, then you just select the appropriate Accounts Payable account of your system.
  • When you come to the Amount column of the vendor, then just enter the actual amount of the refund.
  • Enter a memo, check number, payment method, and class (Optional).
  • Select Save & Close option.

2. Apply it to the Deposit before you Create a Bill for the Amount of the Deposit:

  • Firstly go to the option of the Vendors menu, and after that select the Enter Bills.
  • In the Vendor field, you just select the vendor who sent the refund bill.
  • When you come to the Amount Due field, then you just enter the amount of the refund.
  • Then, select the Expense tab which is given to the display.
  • After you come in the process of the Account field, then you select the option of the Wash account.
  • In the Amount field page, then you enter the amount of the refund.
  • Select Save & Close.
  • Go to the Vendors menu.
  • Then, select Pay Bills.
  • Select the defined Bill
  • Then, select Set Credit of the bill.
  • Select the Credit
  • Then, select Done.
  • Select Pay and after Selected Bills of vendors
  • Then select Done.

3. For the Original Vendor to Create a Credit:

  • Firstly, go to the Vendors menu
  • Then select the option of entering Bills.
  • After that, select the Credit radio button which is given on the display.
  • When you come to the Vendor field, then just select the vendor who sent the refund to the vendor.
  • In the Credit Amount field.
  • Then, the process comes and you just need to enter the amount of the refund to the vendor.
  • Select the Expense tab which is given on the display.
  • When you come to the Account field page, then, just select the account used on the original Bill option.
  • Then, enter the amount of the refund.
  • Select Save & Close.

4. The Wash Account and apply the Bill of the Credit affecting to the Create a Bill for the Amount:

  • Firstly, go to the Vendors menu
  • Then select Enter Bills to the vendors.
  • Come to the Vendor field
  • Then, select the vendor who sent the refund bills.
  • You just need to enter the amount of the refund.
  • Select the Expense tab which is given on the system display.
  • When come to the Account field, then, select a Wash account.
  • When come to the Amount field, then enter the amount of the refund to the vendor.
  • Select Save & Close.
  • After the process come that is going to the Vendors menu
  • Then, the process is shown on the display and then, select Pay Bills.
  • Select the Bill
  • Select the Set Credit bill.
  • Select the Credit option that is displayed
  • And then, select the Done option of that process.
  • Select Pay Selected Bills
  • Then select the Done option.

Situation 5: The vendor sends you the refund as a credit card credit

  1. In this method firstly, go to the Banking menu, and then select the option of entering Credit Card Charges.
  2. After the process dome from the Credit Card drop-down, then select the given option of the credit card account.
  3. Then, select the Refund/ Credit radio button which is displayed.
  4. After that, you found the various options and then choose the appropriate Vendor name and enter the Date, Ref No, and Amount that is important.
  5. Enter an appropriate memo to describe the transaction of the bills.
  6. If you returned items to the vendor, then you select the Item tab and after that, you just enter the Items and Amounts from the refund.
  7. If your refund does not have Items, then select the Expenses tab, after we found the option and then select the appropriate Accounts, and lastly enter the Amount.
  8. Select Save & Close.

We hope the article was helpful for you to record the QuickBooks vendor refund in different situations easily. Still, if in case, you face any problem related to this article then you can get help from our team of certified ProAdvisor.

Didn't find your solution?

Don't get stressed out? We are here for help. Find a QuickBooks ProAdvisor or CPAs who can help you get rid of your problem. Dial our toll-free number.

Call us: +1-877-715-0222

unable to resolve problem