How To Record a Deposit and Refund From a Vendor
It’s not uncommon for vendors to issue partial refunds to clients. Whether it’s a promotional discount, or if the client accidentally overpaid his or her paid, refunds are bound to happen at some point or another. If you find yourself on the receiving end of a vendor refund, you’ll need to reverse the original expense and record the new refund in your Quickbooks account. For a step-by-step walkthrough on how to do this, keep reading.
Fire up your Quickbooks account and choose Banking > Make Deposits. Under the Make Deposits window, click the Deposit To drop-down list and choose the account you would like the refund to be added to. Next, click the Receive From field on a blank line and enter the name of the vendor from whom you received the refund. In the From Account field, choose the account associated with the original bill.
Next, enter a memo for the refund, as well as a check number and method of payment (e.g. check, credit card, bank transfer, etc.). You’ll also have the option to assign a class to the refund, which is particularly useful in situations where there are several refunds. If you struggle to keep track of refunds received, you may wish to use classes. This will make finding and organizing them easier. Of course, classes are completely optional and you are in no way required to use them when recording a deposit and refund from a vendor.
The final step is to enter the amount of the refund in the Amount column. Double-check to make sure this number is correct before clicking the Save & Close button. Assuming it’s right, complete the process by clicking the Save & Close button. Sorry if you were expecting more, but that’s all it takes to record a deposit and refund from a vendor in Quickbooks!
It’s important to note that there are times when a vendor may issue a refund that exceeds the original amount owed. In this instance, you should only enter the amount of the overpayment on the deposit line with the vendor’s name, Accounts Payable as the account, and the amount.
Did this tutorial work for you? Let us know in the comments section below!