How to enter a cheque for a refund from a vendor

Hello, Sppa. You need to record the bank deposit and link it to the credit invoice (bill credit) you created for the canceled insurance policy.

To record a deposit, go to Banking > Make Deposits. If the Payments to Deposit window appears, click OK. In the Make Deposits window, choose your insurance provider in the Received From column, and pick the Accounts Payable account in the From Account column. Enter the cheque amount, date, and an optional memo, then click Save & Close.

Next, to link the deposit to the bill credit, navigate to Suppliers > Pay Bills. Check the deposit that corresponds to the supplier cheque amount, then select Set Credits to apply the previously created Bill Credit. Finally, select Pay Selected Bills, then click Done.

After completing this process, Accounts Payable will be balanced, and your bank register will reflect the deposited cheque. For more scenarios on tracking supplier refunds, check out this article: Record a supplier refund in QuickBooks Desktop.

Let me know if you have any other questions about managing vendor refunds or navigating QuickBooks Desktop. We are always here to help.