Recording the transactions in QuickBooks and ensuring that they are up-to-date helps you track the account balances. Whenever you receive the refund amount (from your vendor) against the faulty goods you must register the vendor refund in QuickBooks leaving no room for financial bookkeeping errors.
The same thing should be done in the scenarios – for returned inventory items, for a bill that’s already paid by you, or when a supplier refunds you for an item that is not related to an existing bill. This article will work as a DIY guide for different scenarios to help you record suppliers' refunds in QuickBooks using some simple steps. Have a quick run-through, choose the scenario that suits your situation, and follow the instructions carefully.
Follow these steps to record vendor refund in QuickBooks
Here we have mentioned the five different situations that you may come across while recording the vendor refund. Pick the one as per your requirement and follow the instructions beneath it.
Situation 1. Has your vendor sent you a refund cheque for the returned inventory item?
· Yes! Here is what you have to do to record a deposit of that refund vendor cheque.
1. Firstly, navigate to the banking menu and then click make deposits.
2. Click ok over Payments to deposit window.
3. Now, under the make deposit screen click the Received From drop-down list and click the name of the supplier who has sent you the refund.
4. And in the “from account” drop-down list choose the appropriate accounts payable account.
5. Enter the exact amount under the amount field box and fill in the required information in the deposit section.
6. Now click save and close.
· Follow the below steps to record bill credit for the returned items.
1. Navigate to the suppliers menu and hit the enter bills option.
2. Click the credit button, enter the supplier name, and click the items tab.
3. Now you will need to enter the returned items in the desired section and click save and close.
· Here is what you need to do to link the deposit to the Bill credit.
1. Again you will have to head over to the suppliers menu and click pay bills.
2. Now you can verify the deposit that matches the vendors cheque amount.
3. Click set credits and apply bill credit that you have formed earlier.
4. Click done.
5. Now hit pay selected bills and click done again.
Situation 2. Has your vendor sent you a refund cheque for a bill that’s already paid?
· Please record a deposit of the vendor cheque. The steps remain the same as given for scenario 1.
· Record a bill credit for the amount refunded by your vendor.
1. Click the suppliers menu and select enter bills.
2. Now you will have to choose the credit button and enter the supplier name.
3. Click the expenses tab and enter the accounts on the original invoice.
4. Enter the exact amount for each account in the amount section.
5. Click save and close.
· The next step is to link the deposit to the Bill credit. To do that you will have to follow the same instructions as given in scenario 1.
Scenario 3. Has your supplier sent a refund cheque that is not related to an existing bill?
It could be in the form of rebates, reward incentives, reimbursements, refunds issued by a supplier to cash out an existing credit.
· The first thing you need to do is recording a deposit of the vendor cheque and for that, you will have to follow the steps given in scenario 1.
· The next step is to register a bill credit for the amount of the vendor cheque. Here is what you need to do.
1. Head over to the supplier menu and click enter bills.
2. Now click the credit button to register the return goods. Make sure to mention the supplier name.
3. Click the expenses tab and enter the account for the funds.
4. Enter the amount for each account in the amount section.
5. Click save and close.
· The third step is to link the deposit to the bill credit
1. Click suppliers menu.
2. Select pay bills.
3. Verify that the deposit matches the vendor cheque amount.
4. Click set credit and apply the bill credit.
5. Click done.
6. Click pay selected bills and then click done.
Scenario 4. Has your vendor sent you the refund as a credit card credit?
Here is what you need to do.
1. Open QuickBooks, go to the banking menu.
2. Now click enter credit card charges.
3. Credit card drop-down list opens, choose the credit card account.
4. Now you need to click the refund or credit radio button.
5. Select the supplier name from the list, enter the date, reference number, and amount.
6. Further, you can enter the appropriate memo to describe the transaction.
7. For the returned items, click the item tab and enter the name of the item to be returned and the amount to be refunded.
8. You can click the expenses tab if you do not have any item against a refund.
9. Click the appropriate accounts and then enter the amount.
10. Lastly, click save and close.
Scenario 5. Has your vendor sent a refund cheque on behalf of the original supplier?
Well, in that case, you have several options to record the vendor refund in QuickBooks. The following are the steps that you can take to execute.
· The first step is to create a deposit for the vendor who has sent you the refund cheque.
1. Launch QuickBooks, navigate to the banking menu, and click make deposits.
2. If you see the payments to deposit window then click ok.
3. Go back to the make deposits window, click the Received From drop-down arrow and select the supplier who has sent you the refund cheque.
4. Click the from account drop-down arrow and choose the appropriate accounts payable account.
5. Now enter the exact amount to be refunded in the amount column.
6. You can also choose the payment method, enter a check number, and register a memo.
7. Click save and close QuickBooks.
· Create and apply a bill for the amount of the deposit
1. You will have to start by clicking the suppliers menu.
2. Click enter the bills menu.
3. Select the supplier who has sent you the refund in the supplier field.
4. Enter the amount to be refunded in the amount due field.
5. Click the expenses tab, go to the account field and select a wash account.
6. Go to the amount field and enter the amount to be refunded.
7. Click save and close.
8. Now again navigate to the suppliers menu and click pay bills.
9. Choose the bill and click set credit.
10. Choose the credit and then click done.
11. Click pay selected bills and then click done.
What to do when you can’t record the supplier refund in QuickBooks?
Just get in touch with the QuickBooks experts if you can’t record the vendor refund in QuickBooks using any of these instructions. We have a team of QuickBooks pro advisors to help you overcome any challenge that you might be facing in Intuit’s accounting software. Call us at our 24/7 available helpline number. We will be glad to assist you.
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