Accounting Talk Accounting Talk    FAQ   Search   Memberlist   Usergroups   Register   Profile   Log in to check your private messages   Log in  How to Process Returns of Excess Payments          Accounting Talk Forum Index -> Quickbooks View previous topic :: View next topic   Author Message Will Guest Posted: Thu Jun 05, 2008 5:42 am    Post subject: How to Process Returns of Excess Payments 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 Back to top   Ads Advertising Sponsor aps Guest Posted: Thu Jun 05, 2008 10:06 am    Post subject: Re: How to Process Returns of Excess Payments "Will" <westes-usc@noemail.nospam> wrote: Quote: 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. Back to top   Ads Advertising Sponsor Peter Secor Guest Posted: Thu Jun 05, 2008 11:00 am    Post subject: Re: How to Process Returns of Excess Payments "Will" <westes-usc@noemail.nospam> wrote: Quote: 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. Back to top   Ads Advertising Sponsor Haskel LaPort Guest Posted: Thu Jun 05, 2008 4:33 pm    Post subject: Re: How to Process Returns of Excess Payments "Will" <westes-usc@noemail.nospam> wrote in message news:C7qdnVxvyvkcq9rVnZ2dnUVZ_t7inZ2d@giganews.com... Quote: 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. Quote: -- Will Back to top   Ads Advertising Sponsor Will Guest Posted: Fri Jun 06, 2008 12:57 am    Post subject: Re: How to Process Returns of Excess Payments "Peter Secor" <peter@scfrey.com> wrote in message news:6c9f44p4bq717s4tk5td4o6le3916e0ksq@4ax.com... Quote: "Will" <westes-usc@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 Back to top   Ads Advertising Sponsor QBConsultant Guest Posted: Fri Jun 06, 2008 11:53 am    Post subject: Re: How to Process Returns of Excess Payments On Jun 5, 2:57 pm, "Will" <westes-...@noemail.nospam> wrote: Quote: "Peter Secor" <pe...@scfrey.com> wrote in message news:6c9f44p4bq717s4tk5td4o6le3916e0ksq@4ax.com... "Will" <westes-...@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-Starting/dp/1434810690 Back to top   Ads Advertising Sponsor aps Guest Posted: Sat Jun 07, 2008 2:51 am    Post subject: Re: How to Process Returns of Excess Payments QBConsultant <QBConsultant@gmail.com> wrote: Quote: On Jun 5, 2:57=A0pm, "Will" <westes-...@noemail.nospam> wrote: "Peter Secor" <pe...@scfrey.com> wrote in message news:6c9f44p4bq717s4tk5td4o6le3916e0ksq@4ax.com... "Will" <westes-...@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. 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