Let's say you purchase a product by purchase order. Item is received and PO is paid by a bill. Later, within warranty, you discover product is defective and return to the vendor. How should you be processing the refund from the vendor in Quickbooks?
It depends on who your warranty is with, i.e. the vendor or the manufacturer. Most of the time, they will repair of replace the defective product, depending upon what the warranty states it will cover. If the vendor does refund your money, you simply debit cash and credit inventory or expense for the returned item as the case may be.
In the "Enter Bills" screen, check the box for 'credit' and enter the return. This will create a credit with the vendor.
Willy boy is back with another question.
I know how to process a credit. I asked about a return of funds. I can certainly do the direct debit as suggested by the other poster, but was curious if the involvement of Bills and POs in the original payment created any extra hurdles.
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