Navigate to Banking and Other Deposits: Start by going to the Banking section and selecting Other Deposits.
How to Record a Deposit for a Refund
In this guide, we will learn how to record a deposit from a refund received from a vendor. Follow these steps to ensure accurate recording of your transactions.
Step-by-Step Guide
Use the General Deposit Tab: Within the Other Deposits section, use the General Deposit tab to begin the process.
Enter Vendor Information: Input the name of the vendor from whom you received the refund. For example, if you received a refund from Minnesota Revenue for Compensation Taxes, enter that information.
Enter Transaction Details: Enter the date of the deposit transaction.
Select the appropriate category. This should be the same category used for the original expense. For instance, if the original payment was categorized under Compensation and Payroll Taxes, use the same category for the refund.
Enter Deposit Amount and Memo: Input the amount of the deposit. Add a note in the memo line. Ensure the premise matches the original expense.
Use Default Split if Applicable: If Default Split was used for the original payment, apply Default Split for the refund as well.
Save the Deposit: Click Save to add your deposit to the bank register.
Note on Categories with A Codes: If using a category with any of the A codes, be aware that this will create a negative amount on the Schedule C of the tax return. This is appropriate as all lawful purpose transactions must be reported on Schedule C.
By following these steps, you have successfully learned how to record a general deposit from a refund from any vendor.