In general, vendor rebates can indicate incentives or allowances of vendors. When a customer makes a purchase, the vendor returns a part of the sum to him/her. The vendor rebates in QuickBooks are recorded for the refunds that a company has to return. QB users can quickly record their vendor rebates through the Account button accessible in the accounting software. They can also carry forward the procedure with the Chart of Accounts menu.
This blog will provide the users with more information on the need of recording the vendor rebates in their QB software. Moreover, you will get to understand how to record vendor rebates in QuickBooks with the help of various methods.
Why should You Record a QuickBooks Rebate from a Vendor?
In QuickBooks, rebates from a vendor are recorded when a product is returned by customers. The return may have been initiated due to a customer not liking it. Let us now look at the other 2 reasons for entering QuickBooks vendor rebates:
- The record of rebates may also be needed when a service has been terminated.
- A company might issue a vendor rebate in case a customer has paid an extra charge for the product/service.
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How to Record Vendor Rebates in QuickBooks?
Users or companies can record their vendor rebates in QuickBooks through the Account option. Then head to the Income button to carry out the complete procedure. For an alternate choice, you can utilize the Chart of Accounts tab. Both methods will help you to make an accurate recording of the vendor rebates.
The methods showcased below will lead to the successful recording of the vendor rebates in QuickBooks.
Method 1: Via Account Menu
The Account option/menu present in the QuickBooks software can be excellent for performing the vendor rebate record method. Go to QB and find the Company File that you need to open. Then, head to the Lists option and proceed further to the Chart of Accounts tab. From here, visit the Account button.
Now, follow these directions to understand how to record vendor rebates in QuickBooks via the said button:
- Head on to access your “QB” account.
- Next, a particular “Company File” is to be opened for the rebates adjustment.
- Go to “Lists”.
- Select “Chart of Accounts”.
- In the fifth direction, please press “Account”.
- Pick the “New” option.
- For creating an income account, you need to opt for the “Income” tab.
- Type “Name” or mention “ID” for the account.
Now, you have to make a rebate item. Keep following the below steps to create it:
- Navigate to “QuickBooks” in case you closed it earlier.
- To have a look at the other available options, push “Lists”.
- Then click on the “New” tab.
- Among the options, choose “Other Charge”.
- Reach the “Account” menu.
- A drop-down menu will appear. From here, opt for the income account that you had created earlier.
- You do not require to fill up the amount. Ensure that it is not filled.
- Tap on the “Ok” button.
After creating the redeem item, you need to redeem the rebate. You can do this by scrolling through this procedure:
- In the “QB” window, tap the “Create” button.
- Press “Create Credit Memos/Refunds”.
- Start filling in the particular details needed.
- In this step, you have to click on the “Edit” option.
- “Mark Credit Memo Pending” is to be selected.
- Push the “Save and Close” tab.
Then for recording the vendor rebate, continue with this method:
- Select “Create Credit Memos/Refunds” in the software.
- Tap on “Credit”.
- Changing the “Pending” status is needed.
- Hit the “Save and Close” button.
You will have successfully recorded the QuickBooks rebate from the vendor once you have completed all the steps in the given order.
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Method 2: Through the Chart of Accounts
The procedure for keeping a record of the vendor rebates in QuickBooks can be executed via the Chart of Accounts button. This button can be easily located on opening the software. First, tap on its tab after you find it below the Transactions menu. Then press New and mention the information needed. Also, you have to enter the account’s description and after that, link it with the bank.
The other directions for recording vendor rebates in QB are discussed below:
- You need to launch “QuickBooks”.
- Press the “Chart of Accounts” option below the “Transactions” button.
- Tap on “New”.
- Enter all the required details in the form displayed on your screen.
- Do mention the description of the account that will help afterward to identify it.
- Then the account is to be linked with the bank for recording the transactions in an easier way.
- Click on the “Continue” option.
- Now, enter the information on the other form in the fields mentioned.
- Keep the “Opening Balance” as “0”.
- Select “Save and Close”. This will record your QuickBooks rebates from vendors.
A QuickBooks rebate from a vendor may need to be recorded when you have to provide a refund to your customer. There can be various other needs too for recording the vendor rebate in the software. This page mentioned several procedures for executing the record of the vendor rebates in QuickBooks. Let us know your views about this blog after performing the highlighted methods.
For reading how to record a transfer between accounts in QuickBooks, tap here. We suggest that you go through our other blog to understand how to write off bad debt in QuickBooks.