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  #1  
Old 04-03-2005, 09:05 PM
tcustomgolf tcustomgolf is offline
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Return to Vendor

Just need some help in the steps necessary to return and item to a vendor. Using QB 2003 Pro.

When I purchase from a vendor, I use my company debit card that goes against my checking account. Once in a while a customer does not require an item within an order I placed with the vendor. It is all already paid for w/ my debit card and in my check register for the full amount.

After the return, my vendor issues a credit invoice to me for the cost of that one item. I know I have to use the "Enter Bills" screen and select the "credit" radio button, fill out the vendor, date of the credit invoice, the amount, and in the details section the item that was returned (which takes it out of inventory).

Then what? I have a negative amount for the cost of the item in my a/p account, and what do I need to do to get the credit into my check register as a deposit?

Thanks to all.........great forum here!
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  #2  
Old 04-03-2005, 09:10 PM
suzannemead suzannemead is offline
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If the vendor is actually sending you a check for the refund you don't need to enter a credit. Enter the check on the Make Deposits window using the vendor's name and the account the original purcahse was charged to. A credit would only be used if you were purchasing on account and entered your bills from the vendor through Enter Bills.
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  #3  
Old 04-03-2005, 09:23 PM
tcustomgolf tcustomgolf is offline
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Thanks for responding Suzanne.

The vendor sends a paper credit invoice, and the money goes back to my checking account, since my debit card is acting like a credit card. But it sounds like I still shouldn't do a credit bill and just do a "Make Deposit" for the appropriate amount. Should the "From Account" field in the Make Deposits screen be the a/p account?

Also, I do enter bills from the "Enter Bills" screen, though I don't purchase on account. I figured the "Create Purchase Order" screen would be used for purchasing on account??

Thanks again....sorry...kinda new to QB.
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  #4  
Old 04-03-2005, 10:21 PM
suzannemead suzannemead is offline
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If the vendor is sending the paper credit and a check that is really duplicating the process. I would ignore - not enter the papaer credit and just use thte Make Deposit screen. Use the name of the vendor and the account you originally charged the purchase to. Accounts payable is only for purchases you make and pay for later. I see no reason to use the Enter Bills screen if you aren't buying on account. All you need to do is write a check or use your debit card, showing the vendor as the payee. If you buy with a debit card enter it like a check and just use "Debit", or something similar, instead of a check number. Use whatever account you use for the items you are buying - I have no way of knowing what account to tell you to use without knowing what you are purchasing. When you return something you use that same account. If you don't track inventory you don't really need the purchase order function unless that is something that is required by your company.
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  #5  
Old 04-03-2005, 10:40 PM
tcustomgolf tcustomgolf is offline
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I purchase components to make custom golf clubs, eg. grips, shafts, heads, etc. and I use the Enter Bills screen in order to enter an itemized list of the components...doing that makes each item go into inventory (though I buy the components per customer request, and they leave inventory once I do an invoice or sales receipt).

So now I have a component in inventory once I buy from the vendor, but if I use the Make Deposits screen, I don't take that component back out of inventory.

That's why I was using the Credit Bill to record the credit from the vendor, and to remove the component from inventory, otherwise I return the component to the vendor, but it remains in my inventory.

When I do that though, the credit bill puts a negative amount in my a/p. Was wondering how to get rid of that (or to do it another way where a/p doesn't get hit), and at the same time enter the amount from the return back in my checking account.
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  #6  
Old 04-04-2005, 07:26 AM
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What you said here

Quote:
just do a "Make Deposit" for the appropriate amount. Should the "From Account" field in the Make Deposits screen be the a/p account?
is correct.

What Suzanne was getting at was that if you don't use inventory items, then you could simply bypass the vendor bill/credit and use your COGS or Expense account right in the make deposits screen. However, since you use inventory items you are correct in that you must enter a bill credit to A/P, and then a bank deposit where you put A/P and the vendor's name in the make deposits screen.

I have chosen not to integrate my inventory into Quickbooks so I can do it the easier way, as Suzanne suggests. I can even skip the enter bills on the initial purchase and just put the appropriate COGS accounts right on the payment check to the vendor. You, however, don't have this choice and must do it the long way to avoid having orphaned inventory items.
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  #7  
Old 04-04-2005, 12:25 PM
Joey Joey is offline
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Since you are using Inventory and issued the Credit Memo to record the return, that created a Debit (negative balance) in the A/P account for that vendor. When you Make Deposits, select A/P and that Vendor's name and that will Credit the Vendor's A/P name and record the money going into your checking account.
Then go to Pay Bills and select the amount there and also the Apply Credits button to create a zero amount vendor "payment" to clear them out.
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