Refund / Credit from vendor won't show in bank account

Well, you're half-way there. When you entered the credit in the 'Enter Bills' window, you debited Accounts Payable for the vendor. Commonly, a vendor credit is used to offset vendor bill(s). In this case, though, there is no bill (you have a refund check). To enter this check into your bank account, you need to use the Make Deposits window.

Since you have already made an entry for the credit in A/P, you need to 'link' the check from the vendor to the A/P account when you make the deposit. Enter the vendor name in the 'received from' column, and enter Accounts Payable as the From Account.

At this point you have two entries in A/P for the vendor; the credit from the 'Enter Bills' window, and the deposit to your bank account.

Go to the 'pay bills' screen. The deposit you made shows up as a 'bill'. Select the bill, use the 'apply credits' button 'set credits' button to apply the credit.

An alternate method would have been to skip the bill credit window, and to deposit the vendor check using the expense account of the original expense, instead of A/P. Of course, if the credit refund was for multiple items with different expense accounts that would not work, since you cannot split accounts for a single transaction in the deposit window.

What you have done is adjusted your inventory the corresponding effect being on Accounts Payable but no entry has been passed regarding receipt of cash. To record this go to Banking> Make Deposits; put vendors name, Accounts Payable and the amount of refund in 'Received From', 'From Account' and 'Amount' column respectively. Now go to 'Pay Bills' window select the above transaction and click on 'Set Credits' button and then on 'Done'.

Victor

myQBaccountant Team Free unlimited Quickbooks Support

It did just what I wanted. Thank you for the great help.

Wayne

Thank you very much for the help.

Wayne