Linda Artesani shows how to record vendor refunds in QuickBooks Online. She walks through two examples: an Intuit subscription refund and a Verizon overcharge. For each, you create a bank deposit and assign it back to the original expense account to reduce that expense on your P&L.
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Hi there. Linda Artesani, Artesani Bookkeeping, and this is a QuickBooks Online tutorial. Happy New Year, it's coming up. Hard to believe that 2017 is just about behind us now. I thought I'd do a video on how to handle a vendor refund. So let's go to QuickBooks, my sample company. So basically, a purchase Perfect example. I paid for QuickBooks Online, and then I canceled my subscription. So I got a bill from QuickBooks, and just have to stretch your imagination here because usually QuickBooks just takes the money out of your account. But just for this sample's sake, I got a bill from QuickBooks, and I'll show you under my expenses tab. I'll come over to Intuit and come under my account, and you'll see that I got a bill. On December first, I paid it on twelve seventeen, and I called them up and I'm like, "I canceled that subscription. I don't want it anymore. Please refund my money." So today the money came in. So let's come to how we would enter that. So you can see here that the original bill was to do's and subscriptions. It was for my subscription for my online company, and I'm going to get a refund on that. So I'm going to click the plus sign. I'm going to deposit. Again, stretch the imagination, they mailed me a check back. So I'm going to make this deposit into my bank account. It came from Intuit. And this is the part people get a little bit stuck on. You have to put it back to the account that you initially expensed it to. So it would be your dues and subscriptions. And then you can put in the check and then the number 1234 and then the price that they sent you the check for. So In order for that to make sense, what we'll do here is we'll come over to your profit and loss report, and I'll just run the profit and loss for this month. So we'll do it as this month, and then we'll take a little peek here at our dues and subscriptions account. So as you can see, the amount is zero. When I expand it, you'll see that the bill is here. That's how it will show. To show the expense because that's the level that the expense is shown on this transaction, not the bill payment but the bill itself. And then I'm showing the deposit because I was refunded that money. So I won't show the expense for $14.95 because the money came back to me. I don't have that $14.95 expense. So that's how you would see that. If you had entered it as, let's say for an example, you used a debit card. And I'll pick another, we'll just say Verizon, and add this to my sample company, and it was an office expense, so we'll put it as office expense, and my bill was $211.17. My expense was, so I have this automatically come out of my bank account as a debit transaction, so I'm just going to put DC for debit card. I paid my Verizon bill with my debit card. Save and close this transaction. And now we'll go back to the profit and loss. We'll leave that on the screen. So you'll see now that I have my telephone bill. Now let's pretend that Verizon sent me back some money. They overcharged me for whatever reason, and we'll just say they sent me back $50. So I'm going to come over and make a bank deposit. Same thing, just like the expense. It's going to be a little different because we don't have the bill, and I'm just going to put Verizon sent me the money back. Again, it's office, so I'm going to put it as my office administrative expense. They sent me back a check. I'll check for $5, and they sent me back $50. So they refunded me for whatever reason. They refunded me. So it could be I changed my account to a new account and was overcharged, or for whatever reason. So now if I go back to this report and go back into the profit and loss, and again, I'll change it to the month so it makes it a little easier to see just those couple of transactions that I just entered. You'll see now that my telephone expense is no longer $211. It's now $211 minus the $50. So now my net telephone expense is $161, which is true. I paid a full bill on my debit card. I paid for the phone bill on my debit card, and then I was refunded $50. Maybe it was a rebate program, but I'm getting the money back. I no longer have a $211 Expense on my phone because I got the $50 back. I've only got the $161.17. So happy New Year everyone, and so I'm so glad you're here and watching these videos. If you have any questions or comments, feel free to reach out to me on Facebook. I'll provide those links in my blog post. I'd love to hear from you. If you have any suggestions for a future video, I'd love to hear from you on that as well. So thank you for watching. Bye now.
