record refund in quickbooks

How Record Refund in QuickBooks?

Maintaining accurate records and entries is quite essential in the QuickBooks system. Entering a refund is also a part of payment records which should be recorded properly. Though refunds are kind of unfortunate events to the business, they shouldn’t be avoided. 

Your customers, vendor, or any other person involved in the business might ask for a refund and therefore, it should be updated for accurate accounting calculations. Sometimes, certain purchases made from the vendor might not be as great as you’ve imagined, which means you make a refund for it too and this is again unavoidable. 

Reasons for refund are many, but it is important to be recorded as a credit in the bank account. It happens, it is unwanted, a bummer, and very occasional. But you need to return the money that you have received and here is how you can make easily recording of the refund in your QuickBooks Online.

Record a refund of Vendor in QuickBooks

When a vendor sends a refund check for returned Inventory

Record deposit of Vendor’s Check

  • Go to the banking menu and click on Make Deposits, click ok in the deposit window. 
  • Select the option ‘Received from the drop-down ‘and click on the vendor.
  • Select the ‘Accounts Payable’
  • In the amount column in the section, enter the exact amount of the ‘Vendor’ check.
  • Type the information in the ‘Deposit account’. Further, Save and close. 

Record Credited Bill for the amount

  • Choose the Vendors from menu and then select Enter Bills.
  • Press the Credit radio button to account and choose the return of goods.
  • Type the Vendor name.
  • Click on the Expenses tab and Enter the details of the original bill
  • Enter the appropriate amount in the Amount Column for each Account and further Select Save and Close.

Link Deposit to Credited Bill

  • Choose the Vendors menu and then select Pay Bills.
  • Check if the Deposit has a match with the Vendor check amount.
  • Press on Set Credits and apply the Bill Credit that you made and then press Done
  • Choose Pay Selected Bills, then click on Done.

Refund for Customer

If a customer doesn’t like a product and needs a refund for it. Also, avoid a double refund and it is possible by not entering the credit note.

  • Select + New.
  • Choose any one depending upon the situation: Receipt Refund or Give refund.
  • Click the Customer dropdown, then choose the customer that needs the refund
  • Click the Refund From the dropdown, then choose the bank you have deposited the invoice with
  • In the product column, add the product that needs to be refunded
  • Fill in the necessary details of size, quantity, rate, and tax and then Save and close.

Installing QuickBooks Tool Hub

This tool will give the user a lot of benefits that can be enjoyed for an errorless and stress-free QuickBooks recording experience. Earlier, QuickBooks users had to download the tools according to different types of issues or complications they used to face. The QuickBooks recommended install diagnostic tool could have been a support to identifying and getting the entries right. 

However, how you need not have to download different tools as per the error. It can do all together at one stop by installing QuickBooks tool hub. A collection of all the tools to give you great QuickBooks using experience at one place and assist you with various errors and issues too.

  1. It can use to fix all sorts of networking issues within a short period of time
  2. This is a one-stop destination for getting the required tools
  3. All the tools available can use according to the error that occurred or experienced by the user
  4. If there are any company file issues, this can also fix using this hub tool
  5. It will be a great support to making the QuickBooks accounting software error-free

The Bottom Line

These are the best solution to getting rid of your problems. You will surely have a great time getting your entries for refund recorded accurately by following the above steps. Do not try to avoid making refund entries, as it will be a big barrier to calculating your company accounts. Refund entries are crucial and need to be done without fail.