It’s not uncommon for business owners to receive refunds from vendors. There are a few different scenarios in which a vendor may issue a refund. If you accidentally paid the same bill twice, or overpaid a single bill, the vendor may issue you a refund. Another instance in which a vendor may issue a refund is if he or she is out of the product you purchased. Regardless, it’s important to record these refunds in your Quickbooks account.
To record a vendor refund in Quickbooks, log in to your account and access the “Banking” menu and click “Make Deposits.” In the “Payments to Deposit” window, click “OK.” Next, click “Received From” under the “Make Deposits” window and choose the vendor who is issuing the refund. You must now click the “From Account” drop-down menu and select the “Accounts Payable account.” In the “Amount” column, enter the total amount of the refund check, after which you can click “Save & Close.”
After completing the steps listed above, you must then record a Bill Credit for the refund. This is done by accessing the “Vendors” menu, followed by “Enter Bills.” Next, click the “Radio” button and enter the vendor’s name. You must then click the “Expenses Tab” and enter the account from the original bill. In this “Amount” column for this field, enter the amount for the account, after which you can click “Save & Close.”
You aren’t out of the woods just yet. You’ll now need to link the deposit to the newly created Bill Credit. Go back to your main account screen and click the “Vendors” menu, followed by “Pay Bills.” Find the deposit that matches the vendor refund and click it. You should then click “Set Credits” to apply the bill credit you previously created, after which you can click “Done.” Finally, complete the process by clicking “Pay Selected Bills” and “Done.”
Regardless of what your business does or offers, you’ll probably receive a vendor refund at some point in time. Maybe the vendor failed to deliver a purchased product or service, or perhaps you overpaid for a product or service. Either way, it’s important to record vendor refunds so they don’t throw off your books. Assuming you use the Quickbooks accounting software, you can easily record vendor refunds by following the steps listed here.
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