Quickbooks Online Supplier Credit

Discussion in 'Accounts & Finance' started by Beav, Aug 21, 2019.

  1. Beav

    Beav UKBF Regular Free Member

    161 7
    Hi guys,

    i've been issued a refund from a supplier. I cannot select the "+" and then "supplier credit" due to my subscription. Is there another way I can do it? My bank is linked to QB and its showing the refund as well I just need to match it with the original invoice on QB

    Kind Regards,
    Beav
     
    Posted: Aug 21, 2019 By: Beav Member since: Apr 30, 2018
    #1
  2. WorkingFromHome35

    WorkingFromHome35 UKBF Newcomer Full Member

    26 3
    I can't post a link yet as I don't have 30 points. There is a quickbooks article on this - have you seen it?

    Record a Deposit of the vendor check:
    From the Banking menu, click Make Deposits.
    If the Payments to Deposit window appears, click OK.
    In the Make Deposits window, click the Received from drop-down and choose the vendor who sent you the refund.
    In the From Account drop-down, select the appropriate Accounts Payable account.
    In the Amount column, enter the actual amount of the Vendor check.
    (Optional) Enter a memo, check number, payment method and class.
    Click Save & Close.
    Record a Bill Credit for the refunded amount:
    From the Vendors menu, select Enter Bills.
    Select the Credit radio button to account for the return of goods.
    Enter the Vendor name.
    Click the Expenses Tab and enter the Accounts on the original Bill.
    In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
    Click Save and Close.
    Link the deposit to the Bill Credit:
    From the Vendors menu, select Pay Bills.
    Check the Deposit that matches the Vendor check amount.
    Select Set Credits and apply the Bill Credit you created earlier then click Done.
    Click Pay Selected Bills > Done.
     
    Posted: Aug 22, 2019 By: WorkingFromHome35 Member since: Aug 15, 2019
    #2
  3. Helpful Johnny

    Helpful Johnny UKBF Regular Free Member

    105 23
    Presumably you have Simple Start so don't have the bills functionality, you are just doing expenses? I would probably keep this simple and raise an expense again like you did before.. i.e. plus icon then expense.

    Select the same payee and the same account in the chart of accounts you used first time but with a negative amount. This will then do all the magic when you match it against the transaction in the bank. No need for the pages of steps that have been suggested here already, don't make work for yourself.. I'd make sure in the memo box at the bottom I mention it's a partial refund against XYZ transaction or you might forget in the future.
     
    Posted: Aug 22, 2019 By: Helpful Johnny Member since: Dec 28, 2018
    #3
  4. Beav

    Beav UKBF Regular Free Member

    161 7

    Thanks for the replies. Will do this. I suppose for tax purposes as long as all incomings/outgoings match up it's all good :)
     
    Posted: Aug 26, 2019 By: Beav Member since: Apr 30, 2018
    #4
  5. Beav

    Beav UKBF Regular Free Member

    161 7
    Looks like I may need to upgrade my subscription. Everyone seems to say "click supplier credit". For my basic QBO subscription this isn't supported.
     
    Posted: Sep 10, 2019 By: Beav Member since: Apr 30, 2018
    #5
  6. Helpful Johnny

    Helpful Johnny UKBF Regular Free Member

    105 23
    Hey Beav,

    Can you confirm 100% which version of QBO you are using and I will double check for you?

    There is no way that if you got a supplier credit you have to upgrade.. please don’t waste your money. I’ll set up a trial myself and record the steps for you on your version. Just let me know when you get a chance to check.

    Cheers,
    Johnny
     
    Posted: Sep 10, 2019 By: Helpful Johnny Member since: Dec 28, 2018
    #6
  7. Beav

    Beav UKBF Regular Free Member

    161 7
    Hi Johnny,

    That's very nice of you. I'm using the first subscription package, simple/starter it's called.
     
    Posted: Sep 10, 2019 By: Beav Member since: Apr 30, 2018
    #7
  8. Helpful Johnny

    Helpful Johnny UKBF Regular Free Member

    105 23
    OK so..

    Go to the bank statement link in your banking screen and click it, don't click add now, you just want to click the line so the extended box drops down.

    You should see "Add" "Find Match" "Record Transfer" then beneath that more drop downs and boxes.

    You need to click "Add", then select the Supplier from the Supplier/Payee list.

    In the category use the same account code you used for the original supplier invoice i.e. advertising or whatever it may be.

    In the memo it's best practice to explain what the transaction is i.e. refund of supplier invoice XYZ because of ABC.

    Then click add.

    ------------------------------------------

    The accounts will balance and if you run a supplier transaction report you will see that both transactions will be listed in the supplier. What you don't get is the transaction listed in suppliers as "Managing Suppliers" and "Bills" is for a higher subscription level.

    The important thing here is that you are showing the transactions correctly reconciled which they are and if you run a Profit and Loss you will see that they both cancel each other out.

    There may be 100 other ways to do this but this is how I would do it in Simple Start.. or you chose to pay for a more expensive version which you definitely don't need..

    QBO differentiates between Bills, i.e. stuff that is typically bought on payment terms so a supplier will invoice you and Expenses which is anything you pay upfront immediately. Simple Start lacks Bills which is why this is slightly funky when you get a refund from one..
     
    Posted: Sep 11, 2019 at 1:06 PM By: Helpful Johnny Member since: Dec 28, 2018
    #8
  9. Beav

    Beav UKBF Regular Free Member

    161 7
    Really appreciate you taking the time to do this for me. I'm pretty sure I was doing it that way but I was concerned when I checked my suppliers there wasn't a credit note/refund note listed.

    Huge thanks again
     
    Posted: Sep 11, 2019 at 1:34 PM By: Beav Member since: Apr 30, 2018
    #9