Categories
Bank Deposit Customers Expense Expenses Invoice Reports

Why mark it billable to a customer and select “track returns for customers” box on a bank deposit

This has to do with reflecting accurate direct expenses related to customers on Income by Customer Report.

If you are depositing a vendor/supplier refund for an expense that was previously Billed to a customer, select “Track returns for customers” box and choose that same customer on the deposit and mark it Billable.

For example, if you buy a material for a customer’s job, you would bill the expense to the customer. But if the customer later returns the material to you and you return it to the vendor/supplier for a refund that you are depositing, you need to mark the deposit billable to that same customer and also select “Track returns for customers” box. Otherwise, it will show as customer billed for the material expense, and the vendor credit will not appear on Income by Customer Summary Report.


 





 
Here is an example of what happens when $1,000 billable purchase returned to the supplier for a refund and deposited that money in the bank. The goal is to show zero expense related to that customer.

SHOWING RESULT WITHOUT BILLABLE AND RETURNS FROM CUSTOMERS

deposit without billable-and track returns for customers
deposit without billable-and track returns for customers
income by customer summary without billable track returns from customers
income by customer summary without billable track returns from customers

SHOWING RESULT WITH BILLABLE AND RETURNS FROM CUSTOMERS

deposit with billable and track returns for customers
deposit with billable and track returns for customers
income by customer summary with billable track returns from customers
income by customer summary with billable track returns from customers

 
WATCH VIDEO
QuickBooks Online Plus: Track returns for customers box on Deposit Form


 





 

Categories
Vendor Vendor Credit Vendors

I returned items that were ordered for customer job and charged to my bank debit card. They will be refunded back to my bank debit card. How do I enter this credit into QBO back to customer job?

It is kind of hard of believe they do not have designated “Debit Card Credit Form” (or Expense Credit Form), just like one they have for Credit Card Credit Form.

I am not excited to give this way-around approach, but it will work especially recording credit for customer job related return.

#1 create new credit card type account. Call it “debit card clearing account” (or something similar). This has be to under CREDIT CARD Type.

#2 use credit card credit form (create + sign > vendors > credit card credit form). select this newly created “debit card clearing account” just like you select other credit card name when you return products paid by credit card. This will record credit return for the customer job. It will leave with negative balance.

#3 This one is extra step you need to do. GO to “Transfer” form (create + sign > other > transfer).

Tranfer Funds from = Debit Card Clearing Account from the drop-down list

Transfer Funds to = Selection of bank account used for debit card from the drop-down list

With step #3, debit card clearing account will have zero balance. Bank account should correctly reflect deposit amount.

Done. Everyting accounting wise should be work fine.

If you like to see “Debit Card Credit” form (or Expense Form paid by Debit Card) added in future revision, add your voice here. Remember, they make improvements based on your feedback.

From the home page screen > company gear (upper right corner) > your company > feedback

Note: Just for recording debit card credit for return (and if customer job is not relevant), you can go to bank register and enter as bank deposit. Or use Bank Deposit Form (create + sign > Other > Bank Deposit

debit card clearing account

debit card entry using ccc form

debit card transfer

debit card register

Categories
Vendor Vendor Credit Vendors

How should I really enter refund by a Vendor in new QuickBooks Online?

I followed the refund by a vendor. I entered as a deposit. But then it does not show in the vendor’s transaction listing. How should I really enter this type of transaction?

At this point, they do not have have any designated way to record this transaction. It is just work-around approach to show in the Vendor Center’s transaction listing.

#1 Create Vendor Credit
From the home page screen

  • Select “Vendor Credit” tab under Vendors heading
  • Choose a vendor
  • Make sure account selection (that be entered as account for credit entry) is the same as original account. This is to show applying credit to the same account. For example, you bought printer and expensed it to Computer Expense account . Returned it and received refund for the returned item. Use the same account to credit the refund from the vendor.

#2 Show Bank Deposit for Refund
From the home page screen

  • Select “Bank Deposit” tab under Others heading
  • Choose Bank account for deposit
  • Received From = Name of Vendor from the drop down list who gave you refund
  • Account = Accounts Payable from the dropdown chart of account
  • Amount = refund amount deposited to the bank
  • Enter other related information
  • Save

#3 Unncessary extra step but got to do it

GO back to Vendors Center (blue navigation bar > Vendors > Locate specific Vendor), you will notice “1 Open bill” message under Pending Bills for that Vendor. This could be flawed in QBO design at this time.

  • Select “Make payment” button under “Action” column
  • New “Bill Payment” screen will open
  • You will notice in and out with zero amount transaction
  • Change Ref number to “blank”
  • Save and Close

“1 Open Bill’ message is gone now.
Again, this is unncessary step in new QuickBooks Online.

How should I really enter refund by a Vendor in new QuickBooks Online QBO

Categories
Vendor Vendor Credit Vendors

Where to enter credit for returned items or purchases in new QuickBooks Online?

(1)  Try “Vendor Credit” form (from create “+” sign > Vendor Credit under Vendors header) If you are using “Enter Bill” form to enter vendor bill and returning to the same vendor, you could use Vendor Credit form. It will show negative Vendor balance.


(2)  For returning credit for Credit Card purchases > use Credit Card Credit form 


(3)  For returning credit for Debit Card purchases (or purchases paid by check) > use Make Deposits. In new QBO, they do not have Debit Card Credit or or Check Credit Expense Credit form at this time. There is a known problem using Make Deposits feature. It will not show up in the Vendors center. This is a huge known problem in new QuickBooks Online.

Return Credits
Return Credits

Categories
Credit Memo Customers Customers Center

How do I record a refund to a customer in new QuickBooks Online?

If you have credit balance in customer’s account (A/R) and need to refund customer by payment (by check or by online), you should be using Check or Expense under Vendors header, not Refund Receipt form which works differently.

From home page screen, click “+1” sign
Select check (or expense if you paying online) under Vendors header
Select Customer from drop-down that need refund
Go to Account under Account details = Accounts Receivable (A/R)
Amount = refund amount
Save and Close
This entry will clear customer balance due account.

Note: If you have already used Refund Receipt form for this customer, need to delete that entry. That entry all it does is, takes out money from the bank account and also will reduce the income (or selected account for product/service). It does nothing with Customer account/Accounts Receivable account.

SECOND NOTE:

When to use Refund Receipt under Customers header?

If you have originally created Sales Receipt, to invoice your customer and payment received at the time of sale, and now you need to refund money to your customer that is only time use “Refund Receipt” form.

When to use Credit Memo under Customers header?

You have originally created Invoice and received payment and account has zero balance. And, you need to refund money (for whatever reason over-billing / returned item), you will need to create Credit Memo first. And, then issue refund money, using either check (or expense) form under Vendors header.

For detailed instructional guide regarding these topics, you can also checkout our YouTube videos published for new QuickBooks Online users.

QuickBooks Online (QBO) Tutorial – Customer Invoice, Sales Receipt, Receive Payment, Bank Deposit

New QuickBooks Online Plus – How to enter various expenses in new QBO?

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