How to Process Returns of Excess Payments

Posted by Will on June 4, 2008, 8:42 pm

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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?

--
Will

Posted by aps on June 5, 2008, 1:06 am

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>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?

>--

>Will

It depends on who your warranty is with, i.e. the vendor or the manufacturer.
Most of
the time, they will repair of replace the defective product, depending upon what
the
warranty states it will cover. If the vendor does refund your money, you simply
debit
cash and credit inventory or expense for the returned item as the case may be.

Posted by Peter Secor on June 5, 2008, 4:37 am

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>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.

Posted by Will on June 5, 2008, 3:57 pm

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>>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

Posted by QBConsultant on June 6, 2008, 7:53 am

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> >>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=

> 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