I recently wrote a check (May 2019) to a vendor for bills I thought were unpaid. Turns out, they were all paid in Q4 2018, prior to transferring our accounting system into Quickbooks. How should I handle this? Is it easier to ask the vendor to return the check and void it, or apply a credit? PLS HELP!!
I'm here to lend you a helping hand.
If your vendor's still able to return the check, then that would be best. As you mentioned, you can just void it. But if in case they're no longer able to, you can apply a vendor credit instead.
For more details about vendor credits, you can view the article: Manage vendor credit for reference.
Drop me a comment below if you have any other questions or clarifications.
I just found out the check was cashed. I read the link you provided for vendor credit, but still a bit confused. Since you know the scenario, would you be able to provide clarification on the steps I need to take? Thank you!!
Thank you for coming back to the Community, Bkurtela.
Allow me to chime in this conversation and help you convert the check to a vendor credit in QuickBooks Desktop.
To achieve this, simply open the check and change the expense account of the check to accounts payable. This will allow you to use the checks as credits when paying future bills.
To apply the credit:
That should get you back on track.
I'd appreciate if you can update me on how it goes. I'll be here if there's anything else you need. Have a wonderful day.
Hi there, I tried following your steps but I'm still a bit confused. First, I don't see this option when I bring up the check (image attached):
All my checks under the check register are assigned to the Expense Account: Accounts Payable and I don't see Customer:Job.
Next, what exactly does giving the company a credit do? Do I need to find the bills to which the vendor applied the payment to and then match the credits to those? I feel like I'm missing some information here. Could you clarify? What happens after I apply the credit?
Can I just ask the Vendor to which bills he applied the payment and then mark them as paid in my system?
Thank you for your help
You'll have to modify the check itself, Bkurtela.
Based on the screenshot you provided, the page you're on is in the Bill payment section. You'll have to open the check that you've created for your vendor and change the account from there.
To check if you have successfully applied the credit, please follow these:
By this time, your vendor's balance should be negative.
On the other hand, once the credit is applied, it means you have an over payment towards your vendor. Also, there's no need for you to find and match the bill since, we cannot apply a payment when it's already paid.
That should help you apply the credit to your customer. Have a great day ahead!