How to Process Returns of Excess Payments

"Will" <westes-usc.TakeThisOut@noemail.nospam> wrote:

>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?

In the "Enter Bills" screen, check the box for 'credit' and enter the
return. This will create a credit with the vendor.
 >> Stay informed about: How to Process Returns of Excess Payments 

"Will" <westes-usc.RemoveThis@noemail.nospam> wrote in message
news:C7qdnVxvyvkcq9rVnZ2dnUVZ_t7inZ2d@giganews.com...
> 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?

Willy boy is back with another question.

>
> --
> Will
>
 >> Stay informed about: How to Process Returns of Excess Payments 

"Peter Secor" <peter.RemoveThis@scfrey.com> wrote in message
news:6c9f44p4bq717s4tk5td4o6le3916e0ksq@4ax.com...
> "Will" <westes-usc.RemoveThis@noemail.nospam> wrote:
>>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?
>
> In the "Enter Bills" screen, check the box for 'credit' and enter the
> return. This will create a credit with the vendor.

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.

--
Will
 >> Stay informed about: How to Process Returns of Excess Payments 

On Jun 5, 2:57 pm, "Will" <westes-....DeleteThis@noemail.nospam> wrote:
> "Peter Secor" <pe....DeleteThis@scfrey.com> wrote in message
>
> news:6c9f44p4bq717s4tk5td4o6le3916e0ksq@4ax.com...
>
> > "Will" <westes-....DeleteThis@noemail.nospam> wrote:
> >>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?
>
> > In the "Enter Bills" screen, check the box for 'credit' and enter the
> > return.  This will create a credit with the vendor.
>
> 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.
>
> --
> Will

Only if you received a credit from the vendor. If you received a
refund check, go to make deposits, enter the same account that you
used when you paid the bill and the vendor's name. This will make the
JE for you and record it to the vendor with the other transactions.

Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to
Starting and Growing a QuickBooks Consulting Business
http://www.SuccessfulQuickBooksConsulting.com
http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-S...ting/dp
 >> Stay informed about: How to Process Returns of Excess Payments 

QBConsultant <QBConsultant RemoveThis @gmail.com> wrote:

>On Jun 5, 2:57=A0pm, "Will" <westes-... RemoveThis @noemail.nospam> wrote:
>> "Peter Secor" <pe... RemoveThis @scfrey.com> wrote in message
>>
>> news:6c9f44p4bq717s4tk5td4o6le3916e0ksq@4ax.com...
>>
>> > "Will" <westes-... RemoveThis @noemail.nospam> wrote:
>> >>Let's say you purchase a product by purchase order. =A0 Item is received=
> and
>> >>PO is paid by a bill. =A0 =A0Later, within warranty, you discover produc=
>t is
>> >>defective and return to the vendor. =A0 =A0 How should you be processing=
> the
>> >>refund from the vendor in Quickbooks?
>>
>> > In the "Enter Bills" screen, check the box for 'credit' and enter the
>> > return. =A0This will create a credit with the vendor.
>>
>> I know how to process a credit. =A0 I asked about a return of funds. =A0 =
>=A0I 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 create=
>d
>> any extra hurdles.
>>
>> --
>> Will
>
>Only if you received a credit from the vendor. If you received a
>refund check, go to make deposits, enter the same account that you
>used when you paid the bill and the vendor's name. This will make the
>JE for you and record it to the vendor with the other transactions.
>
>Michelle L. Long, CPA, MBA
>Author of: Successful QuickBooks Consulting: The Complete Guide to
>Starting and Growing a QuickBooks Consulting Business
>http://www.SuccessfulQuickBooksConsulting.com
>http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Startin=
>g/dp/1434810690

I totally agree with Michelle. Not to confuse things, but if this is a trade paybles vendor
that you make numerous purchases with they will nomally issue a credit, unless you
request a cash refund. If the item was sold and returned by a customer, you would
refund the customer by crediting cash and debiting sales. The cost of the defective
item would also have to be taken into account by crediting COGS and debiting
inventory/purchases. The cost amount you were refunded would then be credited to
inventory/purchases for the item.
 >> Stay informed about: How to Process Returns of Excess Payments