Quickbooks Online Tutorial for Beginners 2019 - How to Enter a Vendor Credit & Vendor Refund

QBUniversity.org - In this Quickbooks Online tutorial for beginners 2019 I walk through how to enter a vendor credit and a vendor refund.
Vendors will issue credits and refunds for various reasons. It could be an overpayment, a complaint, or literally anything else. But there are different ways to enter both of these vendor transactions.
This video shows you how to enter both to keep your books in good order.
For additional training tutorials outlining the 3 most common mistakes made in Quickbooks Online and how to avoid them, visit QBUniversity.org

[@timbaker6108]

So easy in Desktop, what a difference to Online

[@QbuniversityOrg]

Tim Baker yep!

[@sackaveli1]

Thanks for this. On the second example, entering a refund, the transaction does not show up in the vendor's transaction list. IT only shows up if I enter the refund as an A/P and not the original expense category. That obvious causes a whole other issue. How do we get that refund to show in the vendor's transaction list as well as the category's transaction list? TY

[@chrisorourke982]

Hi - not sure if this is possible but after nearly 80 minutes on the phone with Intuit support i'm exhausted by their lack of knowledge on their own product, so hoping you know the answer. I received a vendor credit(VC) and after holding it for a bit we decided we may not do further business with them, or at least not in the near future. I asked them to send the value of the VC by check which was received and deposited into the bank. Now i have the bank deposit waiting to be pulled in and I would like to match it up to the open VC to 'close it' so to speak... otherwise it sits on the account as unapplied. Is it POSSIBLE to match the deposit to the open Vendor Credit and if so - how? Appreciate any answer you might have even if it is NO you can not!

[@QbuniversityOrg]

Yeah so what you want to do is when you make the deposit for the refunded credit, say that its from that vendor and put it to the "Accounts Payable" account. This will essentially create a payable to the vendor. Then go into Pay Bills and choose that vendor and bill. It will show an amount due along with the credit. Apply the credit to the amount due and pay it and it will clear it out

[@chrismaxfield5484]

My deposit screen only takes $$ from a customer, not a vendor. What to do???

[@QbuniversityOrg]

On your deposit screen do you mean the receive payment screen? If so go to Banking and Make Deposit and you can enter a vendor deposit there

[@johnpascarella2003]

How do you apply a vendor refund against a vendor credit?

[@davidrelf6162]

Hi Mat, I'm using desktop for Mac and I have a situation where our vendor for parts charges our credit card typically for each invoice they generate but sometimes they combine them. I found it easiest to enter the bill then wait to see the charge post to my credit card and then I select each invoice that applies and pay on the credit card through bill pay. We recently returned some items and it resulted in a large credit. The vendor applied that credit on a couple of invoices and then refunded directly to the credit card the difference. How do I record this and also clear out the credits hanging in bill pay? I tried to go into my credit card charges, entered the refund (credit) in the credit card section choosing the credit radio button so that when I reconcile it will be recorded correctly. However, this does not zero out the vendor and I also have that credit amount hanging out in my bill pay that technically doesn't exist because of the refund. These credits were partially used due to outstanding invoices. I can't find a solution anywhere... any ideas?

[@lanapolo3269]

Thanks so much!

[@QbuniversityOrg]

Welcome!

[@menoford7349]

So if a refund was received via interact, you would still use deposit as EFT rather than Cheque?

[@QbuniversityOrg]

Im not sure what Interact is. If it’s a direct deposit then yes I would use EFT

[@menoford7349]

@@QbuniversityOrg yes it is a electronic fund transfer from one person to another using the bank app. and your bank card. Thanks for the quick reply.

[@QbuniversityOrg]

@@menoford7349 I would do EFT then

[@l.l.dreamlin5893]

Urgent Question: A customer overpaid an invoice by $18 on Credit Card, and We refunded $18 to the customer on the same credit card they provide, and the our bank that associates with the Credit Card Payment has shown the Credit of $18 was refunded to Customer. How will I record this Credit Card Refund In QuickBooks Online. So far I find no video explain Credit Card Refund, only Refund by Check, which is not applicable in my situation. Please respond ASAP! Thanks million!

[@QbuniversityOrg]

Pretty sure this would work - when the refund (charge on your side against the bank account) comes through the bank feed, code it to Accounts Receivable and assign it to that customer. Go to Receive Payments and type in that client. I believe the overpayment will show as a credit and the bank feed refund will show as AR - offset the credit against AR

[@l.l.dreamlin5893]

@@QbuniversityOrg Thank you so much for your prompt reply. On Step one, I go to Banking, and make the changes as you suggested, do I need to click on "Add" for this to work (there is no Save button). When I go to Receive Payment and key in the Customer, I see only one line ---"Unapplied Payment with the Original amount $ & Open Balance of $ 18. " Amount to Apply & Amount to Credit are both $0. Do I need to enter $18 into Amount received Field? or do nothing just click "Save & Close". Sorry for the stupid question. I only began to use Quickbooks Online last week, not sure about many things. Your help is deeply appreciated. Can you also do a video on this topic? That would be a great help!

[@QbuniversityOrg]

@@l.l.dreamlin5893 is there an option to check off a check box next to the Unapplied Amount?

[@l.l.dreamlin5893]

@@QbuniversityOrg Should I go to Banking, assign the $18 credit transaction to AR for the customer. Click on "Add", and then do a Receive Payment? Will Over payment & refund both show up? (I think I'm missing a step that's why no check box next to the Unapplied Amount. Wish I can e-mail you a screen shot to show you what I see.)

[@QbuniversityOrg]

@@l.l.dreamlin5893 send me a screenshot at [e-mail]

[@thdman15111]

Hi Mat, I wished I had seen this video, as I think I stuffed my account up. I had a vendor refund me, for out of stock purchase and I think I accidentally entered a supplier credit. before the refund showed up in my bank account, as I have Quickbooks linked to my bank accounts. Am I able to delete the supplier credit?

[@QbuniversityOrg]

Yeah you should be able to. Just pull the credit up on your screen, go to the bottom of the screen and choose More and choose delete.

[@rolandrios65]

do you have any video on how to refund a clients payment that has already settled and how to fiscally refund the client credit card back. I have a merchant account.

[@QbuniversityOrg]

To be honest I have a lot of videos so I'm not sure if I do. You can look through the Playlists for QBO to so, but what you will have to do is issue the refund through merchant services, then in QBO create a Refund Receipt for that client

[@rolandrios65]

Thank you for your reply. The way you recommended works great and easy.

[@QbuniversityOrg]

@@rolandrios65 awesome!

[@rednblueish]

I receive payments from customers through cheque which are directly deposited to my vendors account. How do I enter the transaction?

[@QbuniversityOrg]

It depends on if you have issued an invoice or not. If so you have to receive payment against the invoice. If not then you can enter it directly in the register

[@florak1087]

Great video Mat! I am doing some books from 2020 and I have a loan refund. Would this be treated the same way or are loans a special beast? Thank you.

[@QbuniversityOrg]

You know what I would actually record this as a deposit directly instead, but how you classify it all depends on what it represents. Was it an overpayment of principal or interest? Depending on the amount, if it is immaterial I would just put it to the Interest Expense account

[@florak1087]

@@QbuniversityOrg It was for $208.16 and I think it is just something he overpaid because he moved to another loan for his truck. I don't know what all the principal and interest is as I will leave that for the accountant to do. What do you think? Thank you for responding.

[@QbuniversityOrg]

@@florak1087 you know it's such a small amount I would put it to the Interest Expense account

[@florak1087]

@@QbuniversityOrg thank you. I will do that. Have a great day!

[@QbuniversityOrg]

@@florak1087 you too!

[@wannabecraftywithaudra1696]

I am struggling to find this info for QB Desktop. Do you have a tutorial on Vendor Refunds for Desktop by chance?

[@wannabecraftywithaudra1696]

I forgot to include that they sent a credit memo and then sent a check and I will need to apply it to a job.