How To Add A Refund From A Supplier In Quickbooks
Adding a refund from a supplier in Quickbooks can seem like a complicated task, but it doesn’t have to be! Refunds are a normal part of business operations, and thankfully Quickbooks makes it easy to manage them.
Add a refund from a supplier in QuickBooks
I’ve been using Quickbooks for years now, and I think it’s great, so great in fact, I did the Advanced Pro Advisor course! so I could learn more about what else I could do with the software. Even though I know lots about it, every time I had a refund in my account, I could never remember how to do, and it would do my head in!
What better way to remember things is to write them out. So here is a step-by-step guide on what to do.
STEP 1
This applies if you’ve already paid for your product or service
- Choose + Icon > Supplier Credit.
- In the Pay to the order field, select the appropriate supplier. If it’s not there, add it.
- Enter the Credit Date, Credit Amount, and Account (the account used here is typically the original expense account on the original bill.)
- Click Save.
PLEASE NOTE: If you’ve already added the product or service through your bank feed, IGNORE STEP 1
STEP 2
- Choose + Icon > Bank Deposits.
- In the section for new deposits (underneath the Payments section) enter the following information:
- In the Received From field, select or enter the desired supplier.
- In the Account field, select the Accounts Payable account (creditors).
- In the Amount field, enter the amount of the refund.
- In the Amount are field, select NO VAT (not inclusive/exclusive).
- Click Save.
STEP 3
- Next, go to the + Icon > Cheque.
- Add the payee and choose the Supplier Credit and the Deposit and add them both.
- Balance should be Zero as they will cancel each other out.
- Click Save and Close.
- If you have Online Banking, Go to banking and Match the record found.
Hope that helps!! Don’t forget to check out my other QuickBooks post >> The top 5 things to do in Quickbooks when entering expenses
You may find Quickbooks for Dummies 2020 helpful with your bookkeeping in Quickbooks. It’s always helpful to have a helpful guide at your fingertips when you are stuck on what to do.
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