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