Record Vendor Refund Check in QuickBooks Desktop: A Complete Guide

When your vendor sends you the refund check, you should enter it in your QuickBooks account as a record. However, it depends on which condition you have received the refund check from your vendor. There could be a number of cases based on which you get the refund check. Thus, we are going to share all the scenarios so that you can follow the right procedure of recording the refund check in the QuickBooks Desktop.

The guide is dedicated to explaining to you how to record vendor refund check in QuickBooks Desktop on the basis of different scenarios.

How to Record Refund Check from Vendor in QuickBooks Desktop?

Refund checks can be sent from your vendor based on different scenarios. For instance, the vendor can send the refund check for the paid bills, inventory items, on the behalf of an original vendor or as a credit card charge. In addition, you can receive the vendor refund check that is not linked with the existing bill.

To record vendor refund check in QuickBooks Desktop, you can pursue the following procedure depending on these cases.

Case 1: Record Vendor Refund Checks for the Paid Bills

When a vendor sends the refund check for bills that are already paid then you can perform numerous steps for it. First of all, you need to record the deposit of a vendor check. Thereafter, you can enter the Bill Credit for the amount that was refunded. Once done, attach the deposit to your Bill Credit.

To know how to record a refund check in QuickBooks Desktop for the paid bills, you can pursue the following steps:

Make a Deposit of a Vendor Check

• Navigate to the “Banking” menu.
• Then, click on the “Make Deposits” menu.
• If you see the “Payments to Deposit” screen then press the “OK” button.
• When you are in the “Make Deposits” screen, you can choose the “Received from” drop-down menu. Thereafter, you can select the vendor you have received the refund from.
• Now, click on the relevant “Accounts Payable” account using the “From Account” drop-down menu.
• Then, add the refund vendor check amount in the “Amount” column.
• After that, add the check number, memo, class, and payment if preferred.
• Press the “Save & Close” button.

Enter Bill Credit for a Refunded Amount

• Go to the “Vendors” menu.
• Then, select the “Enter Bills” option.
• Move on to the “Credit” radio icon. Here, you can start accounting for the goods’ return.
• Now, add the name of your “Vendor”.
• Once selected, switch to the “Expenses” tab.
• Then, add the “Accounts” on your original bill.
• Move to the “Amount” column. Here, you can add the relevant amount for the accounts.
• Once done, click the “Save and Close” option.

Link Your Deposit with Bill Credit

• Click on the “Vendors” menu.
• Then, select the “Pay Bills” option.
• Now, check your “Deposits” that can match with the amount of “Vendor Check”.
• Here, you can choose the “Set Credits” option.
• After that, apply a “Bill Credit” that you created before.
• Once applied, click the “Done” button.
• Click on the “Pay Selected Bills” option.
• Select the “Done” button.

This is how you can record vendor refund check in QuickBooks Desktop for the bills that are already paid. Make sure you enter the details correctly in QuickBooks Desktop.

Case 2: Record Vendor Refund Checks for the Returned Inventory Items

In case you receive a refund check from your vendor for the returned items then you need to record a deposit of it. Thereafter, you can enter the Bill Credit for the returned item and link your deposit to a Bill Credit.

Here is the step-by-step guide to learn how to record a refund check in QuickBooks Desktop.

Record Your Deposit for a Vendor Refund Check

• Go to the “Banking” menu.
• Select the “Make Deposits” menu.
• In the “Payments to Deposit” window, click the “OK” button.
• Now, you can select the “Received from” drop-down menu from the “Make Deposits” window. Thereafter, you can pick the vendor you have received the refund from.
• Once done, select the “Accounts Payable” account from the “From Account” drop-down menu.
• After this, enter the amount of a vendor check amount in the “Amount” section.
• Then, enter the remaining details in the “Deposit” section.
• Click the “Save & Close” button.

Record the Bill Credit for Your Refunded Items

• Navigate to the “Vendors” menu.
• Here, go to the “Enter Bills” option.
• Click on the “Credit” radio option in order to start accounting for the goods’ return.
• Now, enter the name of your “Vendor”.
• Once done, click on the “Items” tab.
• Here, you can add the returned items. Make sure you add the same amount as the vendor refund checks.
• Later, click the “Save and Close” option.

Attach the Deposit with Bill Credit

• Switch to the “Vendors” menu.
• Then, click on the “Pay Bills” option.
• Now, review the “Deposits”. It should match with the amount of “Vendor Check”.
• After this, click on the “Set Credits” option.
• Later, you can apply for a “Bill Credit” that you created before.
• Once done, click the “Done” button.
• After that, click on the “Pay Selected Bills” option.
• Press the “Done” button.

Now, you have learned how to record a deposit, enter the Bill Credit for the returned item and attach the deposit to a Bill Credit. This way you can easily record vendor refund check in QuickBooks Desktop.

Case 3: Record Vendor Refund Checks which is Not Linked to the Existing Bill

If reward incentives, rebates, reimbursements, checks, refunds issued by the vendor in order to cash out the existing credit then you should perform important steps. For instance, record the deposit of your vendor check, enter bill credit for vendor check amount, and attach the deposit to your created bill credit.

Enter Your Deposit for a Vendor Refund Check

• Find the “Banking” menu in QuickBooks Desktop.
• Click on the “Make Deposits” option.
• In the “Payments to Deposit” screen, press the “OK” button.
• Here, you can click on the “Received from” drop-down option from the “Make Deposits” screen. After that, you can choose the name of the vendor from whom you have received the refund.
• After that, click on the “Accounts Payable” account using the “From Account” drop-down menu.
• Now, go to the “Amount” section and add the amount of a vendor check amount.
• Then, add the remaining details in the “Deposit” section.
• Press the “Save & Close” button.

Add the Bill Credit for the Amount of Vendor Check

• Click on the “Vendors” menu.
• Then, click on the “Enter Bills” option.
• Go to the “Credit” radio icon to account for the goods’ return.
• Now, add the “Vendor” name.
• After that, switch to the “Expense” tab.
• Here, you can enter the “Accounts” that you use for refunds. If you are not sure about selecting the account then you can contact accounting professionals.
• Move to the “Amount” column and add the amount for each account. This should be noted that the amount may need to be prorated.
• Later, click the “Save and Close” option.

Link Your Deposit with the Bill Credit

• Click on the “Vendors” menu.
• Then, move to the “Pay Bills” option.
• Now, check the “Deposits” that can match with the amount of “Vendor Check”.
• Click on the “Set Credits” option.
• Here, you can apply for a “Bill Credit” that you created before.
• After that, click the “Done” option.
• Now, select the “Pay Selected Bills” option.
• Click the “Done” button.

Once you are done applying all these steps, your process of recording the vendor refund check will be finished. This is how you can record vendor refund check in QuickBooks Desktop which is not linked to the existing bill.

Case 4: Record Vendor Refund Checks on the Behalf of the Original Vendor

When a vendor sends you a refund check on the behalf of an original vendor then you should create a deposit for that particular vendor. After that, you can enter the bill for the deposit amount and apply it to your deposit. Now, the credit is necessary to be created for an original vendor and then make a bill for the credit amount so that you can apply the bill to a credit.

Make a Deposit for a Vendor You Have Received the Refund Check From

• Find the “Banking” menu.
• Go to the “Make Deposits” option.
• Move to the “Payments to Deposit” screen and click the “OK” button.
• Go to the “Make Deposits” screen to select the “Received from” drop-down option.
• After that, select the name of your vendor from whom you have received the refund check.
• Then, select the “Accounts Payable” account from the “From Account” drop-down option.
• After that, click on the “Amount” section to enter the amount of a refund.
• Now, you can add the check number, memo, class, and payment if preferred.
• Press the “Save & Close” button.

Enter Bill for the Deposit Amount

• Click on the “Vendors” menu.
• Choose the “Enter Bills” option.
• Now, search the vendor name from whom you have received the check and add the name in the “Vendor” field.
• Switch to the “Amount Due” section and add the refund amount.
• Once done, click on the “Expense” tab.
• Go to the “Account” section and choose the “Wash” account.
• Now, add the refund amount in the “Amount” section.
• After that, select the “Save and Close” button.

Apply the Bill to the Deposit

• Visit the “Vendors” menu.
• Then, click on the “Pay Bills” option.
• Now, choose your “Bill”.
• Here, you can pick the “Set Credits”.
• After that, select a “Bill Credit” that you created before.
• Once you apply it, click the “Done” button.
• Here, click the “Pay Selected Bills” option.
• Click the “Done” button.

Credit Amount for the Original Vendor

• Navigate to the “Vendors” menu.
• Click on the “Enter Bills” option.
• Select the “Credit” radio icon.
• From the “Vendor” field, search for the vendor from whom you have received the refund check.
• Enter the refund amount in the “Credit Amount” field.
• After that, move to the “Expense” tab.
• Go to the “Account” field and select the appropriate account that was used on the original Bill.
• Enter the refund amount into the “Amount” field.
• Select the “Save and Close” option.

Enter Bills for the Credit Amount Affecting the Wash Account and Apply it to the Credit

• Select the “Vendors” menu.
• Then, click on the “Enter Bills” option.
• Select the vendor name who sent you the refund check and add it in the “Vendor” field.
• Click on the “Amount” section and enter the refund amount.
• Switch to the “Expense” tab.
• Click on the “Account” field and choose the “Wash” account.
• In the “Amount” section, add the refund amount.
• Click on the “Save and Close” button.

• Once done, move to the “Vendors” menu again.
• Then, choose the “Pay Bills” option.
• Now, click on the “Bill” and select the “Set Credits”.
• Click on the “Credit” and click the “Done” button.
• Here, select the “Pay Selected Bills” option.
• Click the “Done” button.

In this way, you can record the vendor refund check on the behalf of an original vendor. In case you receive the refund from the vendor as a credit card amount then you can save it in the credit card account as charges.

Conclusive Lines

Vendors can send you the refund check for different reasons such as for the paid bills, inventory items, on the behalf of an original vendor, or as a credit card charge. If you want to record vendor refund checks in QuickBooks Desktop, we have shared the right way to do it.

In case the bank returns the check that you received from a customer, learn here how to record a returned check in QuickBooks.