Your vendor can send you a refund when certain items are returned by you. In several other situations too, you can receive a vendor refund check. To record the refund or its refund check in QuickBooks Desktop and QuickBooks Online, you can apply several methods. These methods will depend on the situations and forms in which the refund/refund check was given to you by the vendor. Usually, the Banking menu or +New option can be used for initiating these methods.

For guiding you more about these methods in QuickBooks to record refunds from vendors, we can be relied on. We have displayed these methods step-by-step and based on different situations.

This summary of the blog can help you look at the methods included here:

How to Record a Refund from Your Vendor in QuickBooks Online?

In QBO or QuickBooks Online, you should press +New to start recording the refund given by your vendor. This option will enable you to add the vendor credit as well as deposit your money that has been received via the refund. Following this, you can utilize the Pay Bills option for connecting your bank deposit to your vendor credit.

Go through these directions for finding how to record a vendor refund in QuickBooks Online in more detail.

  • Begin by adding the vendor credit. Press “+New” in QBO.
  • Click on “Receive Vendor Credit” or “Vendor Credit”.
  • Choose “Vendor” from the dropdown of “Vendor”.
  • Enter the purchase in “Item Details” or “Category Details”.
  • Press “Save and Close”.
  • Repeat step 1. 
  • Opt for “Bank Deposit”.
  • Click on “Account” and choose one.
  • Visit “Add Funds to this Deposit”.
  • Fill in the information for the following:
    • “Received from”
    • “Account”
    • “Payment Method”
    • “Amount”
  • Tap on “Save and Close”.
  • Now, visit “+New” for connecting the deposit to your vendor credit.
  • Opt for “Pay Bills”.
  • Choose the deposit that has been made.
  • View the amount in “Credit Applied” to check it.
  • Ensure that “$0.00” is reflected in “Total Payment”.
  • At last, use “Save and Close”.

How Do I Record a Vendor Refund in QuickBooks Desktop?

You can record a vendor refund in Quickbooks Desktop using the Banking menu when it has been received as a bill. When the refund is given to you for the returned items of inventory, you can use Make Deposits given in the same menu. In one of the scenarios, you can receive a refund check that may not necessarily relate to your existing bill. In this scenario, you can record the deposit of your check and then link it to your bill. 

Let us explore more such scenarios and the methods suitable for these to record the vendor refund checks.

Option 1: Recording a Vendor Refund for a Paid Bill

A refund can be received by you through your vendor when the bill has already been paid. In this scenario, to record this refund in QBDT, you can initially enter the vendor check’s deposit. After this, the bill credit for your amount of refund can be entered. Once this has been done, you only need to link the amount of the deposit to your bill credit. Thus, you will be able to record a vendor refund in QuickBooks Desktop.

  • Begin by recording the vendor check’s deposit. Select “Banking”.
  • Opt for “Make Deposits”.
  • Wait for the window of “Payments to Deposit” to be seen.
  • Press “Ok”.
  • Enter the window for “Make Deposits”.
  • Click on “Received from”.
  • Select that vendor through whom the refund amount has been received.
  • Tap on “From Account”.
  • An account for “Accounts Payable” has to be chosen.
  • View the column of “Account”.
  • Input the amount mentioned on your vendor check.
  • Add the following pieces of information:
    • “Memo”
    • “Check Number”
    • “Class”
    • “Payment Method”
  • Use “Save & Close” following this.
  • Now, we will record the bill credit for your amount of refund. Choose “Vendors”.
  • Click on “Enter Bills”.
  • Press the radio button for “Credit”.
  • Fill in the space for “Vendor Name”.
  • Open the tab for “Expenses”.
  • On your original bill, “Accounts” need to be added.
  • View the column of “Amount”.
  • For all the accounts, the right amount has to be mentioned.
  • For storing the information, choose “Save and Close”.
  • The deposit will have to be connected to your bill credit. For this, again open the menu of “Vendors”.
  • Choose “Pay Bills”.
  • Look at the amount of “Deposit”. Ensure that it matches with the check amount of “Vendor”.
  • Click on “Set Credits”.
  • “Bill Credit” has to be applied.
  • Press “Done”.
  • Click on “Pay Selected Bills”.
  • Again, push “Done”.

Option 2: Entering Vendor Refund Check for Returned Items of Inventory

When certain items of the inventory are returned, you can receive a refund check from your vendor. In this case, the refund check can be added to QuickBooks Desktop by entering the deposit of your vendor’s check. After this, your returned items’ bill credit has to be recorded in the software. In the closing steps of the method, you will be required to link this bill credit to your deposit.

Elaborating on how to record refund checks from vendors in QuickBooks Desktop, we have mentioned the following steps:

  • Let us begin by recording your deposit for your vendor check. Select “Banking”.
  • Head to “Make Deposits”.
  • Let the window related to “Payments to Deposit” open.
  • In this window, choose “Ok”.
  • Now, you will see “Make Deposits”. Choose “Received from” from here.
  • Include the name of the vendor through whom the refund check has been received.
  • Click on “From Account”.
  • Pick an account for “Accounts Payable”.
  • Go to the column for “Amount”.
  • Write the correct amount as has been mentioned on your vendor check.
  • In “Deposit”, you will be asked for certain information. Provide it.
  • Choose “Save & Close”.
  • For your returned items, the bill credit will have to be entered. Choose “Vendors”.
  • Click on “Enter Bills”.
  • Tap on “Credit”.
  • Write the name of your vendor.
  • Go to the tab of “Items”.
  • Type in the items that have been returned. Also, mention their amounts based on the check received.
  • Tap on “Save & Close”.
  • For linking the bill credit and deposit, open “Vendors”.
  • Go to “Pay Bills”.
  • Check the amount of deposit. Then check the amount of the vendor check. Ensure that the amounts match with each other.
  • Click on “Set Credits”.
  • Now, “Bill Credit” can be applied.
  • Choose “Done”.
  • Opt for “Pay Selected Bills”.
  • After this, press “Done”.

Following these steps, you can easily record the vendor refund check in QuickBooks Desktop. While doing these steps, you should see to it that the values you enter do not mismatch, lest the method may not work.

Option 3: Adding a Vendor’s Refund Check Not Relating to Your Existing Bill

In the Desktop version of QuickBooks, to record a refund from a vendor, you should first open the menu for Banking. Use this menu for recording the deposit of your vendor check. Then you can run the Vendors menu to enter the bill credit. This will be entered for the amount that is given on your vendor check. Then you can use the same menu for linking the deposit to your bill credit. After all of this has been recorded, you will have to save the information in QB Desktop.

  • Run “Banking” in “QBDT” to record the deposit of your vendor check.
  • Press “Make Deposits”.
  • Pick “Ok” in “Payments to Deposit”.
  • In “Make Deposits”, choose “Received from”.
  • The vendor who has provided you with the refund has to be selected.
  • Go to “From Account”.
  • An account for “Accounts Payable” has to be opted for.
  • In “Amount”, input that amount that has been added to your vendor check.
  • Visit “Deposit”.
  • Provide every detail that has been asked for.
  • “Save & Close” has to be clicked on.
  • After this, visit “Vendors”.

Important: The menu of “Vendors” will help you in recording the bill credit. It will be recorded for the vendor check amount.

  • Click on “Enter Bills”.
  • Press the radio button indicating “Credit”.
  • Choose “Vendor Name”.
  • Click on “Expenses”.
  • Choose an account for the refund.

Tip: You may not be sure about the account that will be best for this purpose. You can take the help of your accountant to know the same. 

  • A column for “Amount” will be available. For all the accounts, add the amounts.
  • Choosing “Save & Close” is the next step. 
  • In the final part of the method, you need to form a link between “Deposit” and “Bill Credit”. Again, tap on “Vendors”.
  • Choose “Pay Bills”.
  • Ensure that the amount of “Deposit” is the same as that of “Vendor Check”.
  • Tap on “Set Credits”.
  • Applying “Bill Credit” is the next step.
  • Opt for the “Done” option.
  • Click on “Pay Selected Bills”.
  • Now, use “Done” to end this method.

Option 4: Recording a Refund Check for Your Original Vendor

Sometimes, you may need to record a refund check that has been sent by a vendor. It may need to be recorded on behalf of your actual/original vendor. With the help of the QB Desktop’s Banking menu, you can prepare a deposit for the original vendor and save its amount. Then you can move to the menu for Vendors to make a bill for this amount. After making it, the bill can be applied. Along with this, you can make credit for your vendor using the Enter Bills option in the Vendors menu.

To know more about how to record a refund from a vendor in QuickBooks Desktop, please scroll further.

  • In “QB Desktop”, enter “Banking”.
  • Through the menu, opt for “Make Deposits”.
  • Wait for the “Payments to Deposit” screen. Press “Ok” in it.
  • Now, find the dropdown option for “Received from” in “Make Deposits”.
  • Select only that vendor that has given the refund.
  • Go to the dropdown for “From Account”.
  • View “Accounts Payable” and choose an account in it.
  • Open the column designated for “Amount”.
  • In the column, the refund’s total amount has to be written.
  • As an additional step, create “Memo”. 
  • Write “Check Number”.
  • Pick the method of payment.
  • Mention “Class”.
  • After this, hit “Save & Close”.

Important: After hitting “Save & Close”, a deposit will have been made for your vendor. You can now add a bill for the deposit amount. Once the bill has been created, it can be applied to your deposit. The steps to do so have been added below.

  • Visit the menu titled “Vendors” in the software.
  • Choose “Enter Bills”.
  • You will see “Vendor”. In this field, add your vendor.
  • Next, type in the amount received from the refund in “Amount Due”.
  • Go to “Expense”.
  • Click on “account”.
  • Choose “Wash” account.

Important: In the QuickBooks Desktop program, the “Wash” account is similar to the “Expense” account.

  • In “Amount”, fill in the field by stating the refund’s amount.
  • Pressing “Save & Close” is the next instruction.
  • After this, run “Vendors” and look for “Pay Bills”.
  • Using “Pay Bills”, choose “Bill”.
  • Click on “Set Credit”.
  • Then opt for “Credit”.
  • Tap on the “Done” button.
  • Go to “Pay Selected Bills”.
  • Hit “Done” to continue.
  • Following this, you need to add credit in QB Desktop for your original vendor. Click-open “Vendors”.
  • Choose the “Enter Bills” option.
  • Press “Credit”.

Important: The option of “Credit” will be available in the form of a radio button in the software.

  • Decide who is the original vendor who has provided you with the refund. Add this vendor in “Vendor”.
  • Find “Credit Amount” and fill it with the amount associated with your refund.
  • Press the tab that says “Expense”.
  • Click on “Account”.
  • Mention the account that was selected on your original bill.
  • Provide the refund amount in “Amount”.
  • Tap on “Save & Close”.

Important: Now, the credit for your vendor will get recorded in the accounting software. You will have to make one bill for the credit amount. This amount will be the one that has affected your wash account in QB Desktop. Once it has been made, the bill has to be applied to the credit in QuickBooks Desktop.

  • Enter the menu of “Vendors”.
  • Choose the “Enter Bills” option.
  • View the field for “Vendor” and fill it in by making the correct choice.
  • Add the amount relating to your refund in “Amount”.
  • Rush to “Expense”.
  • Click on “Account”.
  • One “Wash” account has to be picked.
  • Mention the amount of refund one more time in “Amount”.
  • To save this information, tap on “Save & Close”.
  • After this, open the menu for “Vendors” once again.
  • Click on “Pay Bills”.
  • Choose your “Bill”.
  • Then tap on “Set Credit”.
  • Now, the option of “Credit” has to be chosen.
  • Hold and release “Done”.
  • Select the option of “Pay Selected Bills”.
  • To end, push “Done”.

This is how you can add a check to record the refund from your vendor in QuickBooks Desktop. Carefully selecting the accounts is required in this method. Not selecting the correct accounts may lead to errors.

Option 5: Adding a Refund Sent via Vendor in the form of Credit Card Credit

In the Desktop version of QuickBooks, to find how to record refunds from vendors, you can go through the method added in this section. It will be essential to know that this method will work only when the refund has been received as credit card credit.

To record a refund as credit card credit from your vendor in QBDT, opt for the Enter Credit Card Charges option from Banking. Choose the dropdown for Credit Card and pick an account for the same. Now, either Credit or Refund can be selected to go ahead. Add your vendor’s name who has provided you with the refund and enter the details such as Date and Amount. Soon, you will be needed to save the information to add the record of this refund.

  • Via “Banking”, you need to choose “Enter Credit Card Charges”.
  • Hit a click on the dropdown available for “Credit Card”.
  • Choose an account for “Credit Card”.
  • Tap on “Refund” or “Credit”.

Important: The option of “Refund” or “Credit” will be provided in QBDT in the form of a radio button. You will have to look carefully to locate it.

  • Identify the name of your vendor who has sent the refund in the form of credit card credit.
  • Input the details asked as follows:
    • “Date”
    • “Amount”
    • “Ref. No.”
  • Create “Memo” for the refund.
  • Visit “Items” in case of returned items.
  • Add the name of these items in “Items”. 
  • Provide the cost of these items in “Amounts”.

Important: When no items have been returned, you need not administer steps 8, 9, and 10. You can head to “Expenses”. Here, pick an account(s) via “Accounts”. Then add the amount.

  • Choose “Save & Close”.
Conclusion

You can record refunds, as well as refund checks, in QuickBooks’ versions. The refunds can be received by you pertaining to different reasons. Based on the reason, you may receive the refunds in different forms. Whether it is received as credit card credit or in the form of a check, you can easily record it in QBDT and QBO, as shown in this reading.