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Processing a Refund from a Supplier in Reckon Accounts Business
ID: 5353 Category: Accounts - Business Range - Desktop & Hosted (previously QuickBooks) Status: Resolved Views: 2288


How do I enter in a refund from a supplier?


Enter a Credit for the amount of the refund

Deposit the refund to your Bank

Pay the “Bill” with the credit on the Supplier account.


The Issue:

When you return an item and you are refunded by your supplier, you need to reduce the amount of the expense you originally incurred, or, if an inventory item was involved, update your inventory account for the item(s) you returned. In addition, you need to record the refund you received, typically through a deposit to your bank account.


Detailed Instructions

(It is assumed the bill has been entered and fully paid)


Enter the credit from a supplier:

  1. Supplier Centre> New Transactions > Enter Bills.

  2. Click the Credit button, select the Supplier and enter the amount of the refund.

  3. Replicate the line from the original bill for the expense/item in question;

    1. Select the Expense tab for a refund on an expense and use the same expense account as the original Bill;

    2. Select the Items tab for a refund on an Item and use the same item as on the original Bill.  If it is an Inventory Item that has been returned, enter the quantity being refunded.

    3. If a tax code is involved, use the same tax code used on the original Bill.

  4. Click Save & Close.


Deposit the refund:

  1. On the top Menu line click on Banking > Make Deposit;

    If you have outstanding Undeposited Funds entries, you will be offered to select these first.  Click on Cancel to ignore this request.

  2. Select the Bank Account and Date;

  3. Enter the name of the supplier in the Received From column;

  4. Enter Accounts Payable in the From Account column;

  5. Enter a Memo;

  6. Enter a cheque number and payment method;

  7. Enter the refund amount;

  8. Click Save & Close.


Clear the credit from your Accounts Payable account:

  1. Supplier Centre> New Transactions >Pay Bills

  2. Tick the entry created by the Deposit. 

    An Available Credits box will open inviting you to select a credit available for this supplier. Click Yes;

  3. Select the credit for this amount and click on Done.

    The credit amount will appear in the Credits Used and should be the same as the Amt. Due.  The Amt to Pay should be 0.00;

  4. Click on Pay Selected Bills to complete the transactions. 


In some instances you may need to create a separate Refund Service item. 

For instance, if a Supplier is giving you a refund to compensate you for the poor quality of goods without you returning the goods, or a general refund that spans many items or a number bills. 

  1. Create a Service item “General Refund Received” and assign it to a Cost of Goods Sold Account “General Refunds Received”;

  2. Enter the Credit on the Items tab and select the General Refund Received item

  3. Enter the Deposit.

  4. Apply the credit to pay the “Bill”.



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Submitted: 1/6/2016

Modified: 1/6/2016 12:31:08 PM

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