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How do i post a credit from a vendor for a specific customer of mine?

My vendor is taking responsibility of defect product. I received credit from the vendor for my customer. I do I post the credit from the vendor for a specific customer?

Best answer 01-03-2019 11:13 AM

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Re: How do i post a credit from a vendor for a specific customer of mine?

You never use a JE when Names are involved.

 

A Vendor Credit is an Enter Bill, changing it to Credit/Return. Now you can list the Items here, and job track it. If you need to pass this to the customer on the next invoice or as a reduction on a sales receipt, mark it Billable. If you have no further charges for the customer where you can use this for a reduction of what they need to pay you next time, then mark this Not Billable and make a Credit Memo for the customer manually, using the same item. The Credit Memo provides for issuing the customer a refund of this amount. Don't use both methods; the Billable status is so that you can select it next time you use Add Time & Costs. The Credit Memo is because you don't intend to do any further charges to the customer using Add Time & Costs.

 

A JE bypasses customer and vendor center, bypasses cash vs accrual basis, bypasses the use of Items (but the Job Reporting relies on the use of items), bypasses affecting Purchase and Sales reporting, bypasses your ability to manage Sales taxes for the activity, and will not provide for using Quantity, either. A JE bypasses Job reporting provisions.

 

You don't need a Barter account, either. There is no "let's avoid trading funds" activity here. Everything is provided as part of Vendor entries and Customer entries and regular Banking activities.

2 Comments
QuickBooks Team

Re: How do i post a credit from a vendor for a specific customer of mine?

Welcome to the Community, Mberry.

 

You've come to the right place. It would be my pleasure to help you transfer the credit from the vendor to your customer.

 

A good way to handle this is to set up a Barter account and then make a journal entries to move the credit. The steps below will guide you through that process:

 

To create the barter account

  1. From the Lists menu, select Chart of Accounts.
  2. Click the Account drop-down menu and choose New. You could also press CTRL + N.
  3. Select Bank, then hit Continue.
  4. Enter the Account Name.
  5. Click Save & Close.

To record the entry to move the credit to the Barter account

  1. From the Company menu, select Make General Journal Entries.
  2. On the first line, credit Accounts Payable with the amount to be transferred.
  3. In the Name column, enter the vendor from whom the credit is coming.
  4. On the second line, debit the Barter account with the same amount.
  5. Click Save & Close.

To record the entry to transfer the credit to the customer

  1. From the Company menu, select Make General Journal Entries.
  2. On the first line, debit Accounts Receivable with the amount to be transferred.
  3. In the Name column, select the customer who will receive the credit.
  4. On the second line, credit the Barter account.
  5. Click Save & Close.

I'm also including an article for more information about this process: How to record a barter transaction

 

Just a heads up, this method can impact your books and you may wish to seek additional guidance from an accounting professional. Every business is unique and they can make suggestions on how to handle this. If you're not affiliated with one, our Intuit Find-A-ProAdvisor site can help you to find certified professionals in your area.

 

Don't hesitate to reach out to me here in the Community with any additional questions or concerns you may have. Thanks for dropping in, wishing you and your business only the best.

Established Community Backer ***

Re: How do i post a credit from a vendor for a specific customer of mine?

You never use a JE when Names are involved.

 

A Vendor Credit is an Enter Bill, changing it to Credit/Return. Now you can list the Items here, and job track it. If you need to pass this to the customer on the next invoice or as a reduction on a sales receipt, mark it Billable. If you have no further charges for the customer where you can use this for a reduction of what they need to pay you next time, then mark this Not Billable and make a Credit Memo for the customer manually, using the same item. The Credit Memo provides for issuing the customer a refund of this amount. Don't use both methods; the Billable status is so that you can select it next time you use Add Time & Costs. The Credit Memo is because you don't intend to do any further charges to the customer using Add Time & Costs.

 

A JE bypasses customer and vendor center, bypasses cash vs accrual basis, bypasses the use of Items (but the Job Reporting relies on the use of items), bypasses affecting Purchase and Sales reporting, bypasses your ability to manage Sales taxes for the activity, and will not provide for using Quantity, either. A JE bypasses Job reporting provisions.

 

You don't need a Barter account, either. There is no "let's avoid trading funds" activity here. Everything is provided as part of Vendor entries and Customer entries and regular Banking activities.