Record a refund from the supplier into the QuickBooks Online (QBO) accounting software
The supplier bill outlines the charges for goods and services you have purchased, and a supplier credit (from the +New button) is a credit note from the supplier for the return of goods and services. Of course, the supplier credit could also be for a discount or adjustment to the previous purchase.
The supplier credit is to offset the outstanding bills from the supplier. There are two methods you can use to offset the amount owed. One is via the pay bill feature from the QuickBooks (QBO) +New menu, and another is selecting the supplier credit and bill to contra from the Expense navigator. Both are workable, but the latter has a choice of which supplier bills and credit to contra.
What if you received a refund?
A refund received means money coming in, so you use a bank deposit feature from the +New menu to debit the bank and credit the accounts payable and offset with the supplier credit you entered.
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