Recording a Vendor Refund in QuickBooks

​Managing a business means dealing with many things and if you are running a small businesses then there are maximum chances that you will always be short on budget.

You should know that the modern era of digitization and globalization might have made starting a business very easy but the competition along with the changing market and technological landscape has made running a business more challenging. Well, while dealing with all these challenges, most of the small businesses forget about accounting and its various aspects and this is where the real problems start.
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You should know that if you are running a business then you need to manage your accounts properly otherwise you will never be able to get expected results from your efforts. Even when it comes to a small operation of accounting like recording vendor refund, you need to do it precisely and quickly otherwise you will end up wasting lots of time and money as well. But thanks to the modern era of technological advancement that most of the businesses are not only lashed with accounting software solutions but they are also lashed with modern technological marvels like QuickBooks desktop hosting.

Recording a vendor refund in QuickBook

If you have been using QB by simply installing it on your desktop then you should know that you are still living a decade ago when it comes to using the latest technology. Simple tasks like recording a vendor refund become a pie with the use of QuickBooks cloud hosting solution and this is why so many businesses have shifted to the cloud accounting solution instead of using the QB by installing it on their desktop. With the cloud, you get the power of global accessibility, high security, and better uptime.

Well, there are many things that you will need to learn while using the QB on the cloud solution and learning all these accounting features or functions is very easy as QB cloud hosting or just the features of the QuickBooks accounting software are famous for their user-friendliness. But we can’t cover every function of the QB accounting software in a single blog post and this is why in this section, we are going to talk about how you can record a vendor refund in QuickBooks in the easiest and quickest possible way.

QuickBooks offers all its users an easy way to record a refund from the vendor and we are going to discuss this process in a step by step method so that you can understand it in a better way. But when the vendors send you a refund check for the paid bills then you will have to complete the process of recording a vendor refund in QuickBooks in three different stages. We are going to discuss all these stages in a detailed and step by step manner.

The vendor sends you a refund check for the paid bill

For this, you will have to record the deposit of the vendor check and in order to do so, you will have to follow the below mentioned steps:-

• Choose Make Deposits from the Banking Menu on your QuickBooks screen.

 

• Now, a new window of payment to deposit will appear and you will simply have to click OK.

 

• After that, you will have to move to the make deposit window and choose received from the drop down menu and now you will have to select that particular vendor that has sent you the refund.

 

• Now, from the account drop-down, you will have to choose the right payable account.

 

• Move to the column of account and enter the right amount of the vendor check.

 

• Now, you will need to enter the check number, memo, payment method and also the class. You should know that entering the class is optional and if you don’t want to enter the class then you can leave it.

 

• Finally, click on Save and Close.

Now, after getting done with the recording of the deposit, you will have to move to the second stage of recording a bill credit for the refunded amount and for this, you will have to follow the below mentioned steps:-

• First of all, you will have to move to the Vendor’s menu and then enter bills.

 

• Then you will have to choose the credit option button to account in terms of returns of good.

 

• Put the vendor name.

 

• Click on the Expense tab and then enter the accounts on the original bill.

 

• Now, you will have to move to the accounts column and enter the right amount for every account. You should make sure that you are entering the right amount for every account otherwise you will have to face problems in the future and things will become very complicated for you.

 

• Finally, after making sure everything is right, you will have to simply click on Save and Close.

At the last stage of recording a vendor refund in QuickBooks, you will have to simply link the deposit to the bill credit. And for doing so, you will have to follow the below mentioned steps:-

• Choose Pay Bills from the Vendor’s menu

 

• Then you will need to verify the amount with the amount of the vendor

 

• Choose Set Credits and simply apply for the bill credit and click on Done.

 

• Choose Pay selected bills and finally click on Done again.