I have one expense for £30.00 for an item bought and then returned. I have one credit of £30.00 from the supplier. Can you tell me how to record these please?

You're in the right place, lorna.

Let me guide you on how to enter the credit from your supplier. We'll need to perform two processes which first Enter a supplier credit and then Deposit the money you got from the refund.

Here's how: 

Enter a supplier credit

1. Select + New and select Supplier credit.
2. In the Supplier field, select the appropriate supplier.
3. Enter the Payment date, Amount, and Category (This is the category, product, or service you’re getting credit for).
4. Select Save and close.

Next, Deposit the money you got from the refund.

1. Select + New and select Bank deposit.
2. In the Add funds to this deposit section, enter the following information:
   • In the Received From field, select or enter the desired supplier.
   • In the Account field, select the Creditors account (Accounts payable).
   • In the Amount field, enter the amount of the refund.
   • In the VAT field, select No VAT (not inclusive/exclusive of tax).
   • Select Save and Close.
3. Next, go to + New and select Cheque
4. Add the Payee and select the Bank Account.
5. From the Add to Cheque section, select Add for the deposit and the supplier credit (make sure both are selected).
6. Balance should be 0 as they will cancel each other out.
7. Select Save and close.
8. If you have Online Banking, go to Bookkeeping, select Transactions, then match the record found on the Bank transactions page.

Keep in mind that you don't need to record it manually if your supplier refund comes through your automated bank feed. You can use add function to add the refund as a deposit and categorise it to the Creditors (Accounts Payable) account.

If you want to record a customer refund. You can read through this article: Record customer refunds in QuickBooks Online.

For additional queries about managing your suppliers' transactions, always route back yourself here. We'll be willing to lend a hand. Take care and have a great day!