QuickBooks: Deposit unexpected refund, rebate, reimbursement or reward check from vendor 6


DepositThis article describes how to track and deposit income from a vendor that is not associated with an existing bill. Examples include rebates, reward incentives, refunds, reimbursements or checks issued by a vendor to cash out an existing credit. These types of items must be deposited in a way that does not leave an undated bill in the vendor center.

Detailed instructions

All three of the following steps must be completed.

  1. Create a credit for the received check to record the fact that you have received a credit from the Vendor in the Accounts Payable.
    1. From the Vendor menu, select Enter Bills.
    2. At the top of the form, select Credit.
    3. In the Vendor field, select the name of the vendor who sent the refund or rebate check.
    4. In the Amount field, enter the amount of the check.
    5. If the check is a credit or refund for a returned item, use the Items Tab and select the item, input QTY returned, and the cost.
    6. If the check is not for an item, Click on the Expense Tab.
    7. In the Account field, select an income account as guided by your accountant.
    8. NOTE: Do not select Accounts Receivable. You cannot use more than one A/R A/P account in the same transaction.
    9. Click Save & Close.
  2. Create a deposit for the refund check to move the rebate/refund/reimbursement from Accounts Payable to the Bank Account.
    1. From the Banking menu, select Make Deposits.
    2. In Received From, select the vendor who sent the refund check. (If not already listed, add the vendor as New.
    3. In From Account, select Accounts Payable.
    4. In Amount, enter the amount of the check.
    5. Click Save & Close.
  3. Apply the credit to the deposit to complete and link the transactions.
    1. From the Vendor menu, select Pay Bills.
    2. Select the deposit. (It will show as a bill without a date.)  Click the Set Credits button.
    3. In the pop up window, select the credit and click Done
    4. At the bottom of the Pay Bills window, click Pay Selected Bills.
    5. Click Done to finish. Now the check has been deposited without leaving an undated bill in the vendor center.

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