QuickBooks POS training manual

Option 2

If you do use QuickBooks to track job costing, are using items to track on hand quantities for inventory tracking purposes, or are using the accrual basis of accounting for reporting purposes, follow these steps to record the refund: (This solution assumes you have already entered and paid a bill for the merchandise received)

Create a Bill Credit

Select "Credit" at the top of the Bill window. Enter the credit as of the date the credit became payable back to you. (usually the date you shipped the items back to the vendor) Enter the amount of the refund detailing the items on the item tab along with cost, quantity, and customer information and save the transaction. (This transaction will remove the items from your inventory values)

Enter A Deposit

Open the Make Deposit window and use one line of the deposit for this refund. Enter the vendor's name in the "Received From" column, use the accounts payable account in the "From Account" column, and enter the refund amount that matches the vendor credit amount. Save this deposit after adding any additional items to deposit along with this refund.

Pay Bills

Go to the Pay Bills window and select the line representing the refund amount. (This line appears after the Deposit transaction is entered in previous step using the Accounts Payable account) Apply the credit by selecting "Set Credits". Ensure the "Amt. to Pay" column shows a zero amount since you're not actually making a payment to this vendor and save the transaction.

Check the Vendor account

The vendor account should now show the correct balance owed (if any) and will show the bill credit / refund. Inventory quantities on hand of the affected items should also be correct, and job costing reports at the customer level should be reflective of the refund.