Vendor refund in QuickBooks Online
Vendor refund in Quickbooks Online is one of the confusing bookkeeping transactions. Lots of people overthink it. I see this question on the Intuit Community forum a lot. I think because you are depositing the check into the bank and it involves accounts payable, it seems to trip people up on how to enter this transaction.
Vendor refund...the steps
- Create the entry to create the bill for the vendor.
- Go to + pay bills to pay the bill and clear out the accounts payable.
- Return the item.
- Vendor receives the item
- Vendor mails you out a check or processes the refund electronically.
Enter the deposit...
Click + bank deposit. It is also helpful to know what the original bill was coded to (what expense). Open a new tab to see the original bill.
You can make the entry into the bank deposit screen. In the video, we received a refund from Intuit (dues and subscriptions) for a cancelled month. Just click + make deposit and enter it to the dues and subscriptions account. You can also enter all of the other pertinent details. IE, check number, etc.
Verify by running the profit and loss report...
Here you can verify the increased expense transaction from the bill. Then you verify the decreased expense from the vendor refund. It will show the net expense for the vendor.
Debit card & credit card transactions...
Can be dealt with in the same manner. They are basically check entries or expense entries. I demonstrate that in the video too. Show the purchase, show the refund. Simple. In the case of the credit card transaction, you must show the refund in the credit card account as a + credit card credit (not shown in the video). This way the funds will show on the credit card account.
I hope this is helpful You can see how an insurance check refund is created in this blog post. Here at Artesani Bookkeeping, Tammy and I would like to wish each and every one of you a very happy and prosperous 2018!
If you have any questions or would like to see a future video on another topic, please reach out to me on Facebook.