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
- From the Lists menu, select Chart of Accounts.
- Click the Account drop-down menu and choose New. You could also press CTRL + N.
- Select Bank, then hit Continue.
- Enter the Account Name.
- Click Save & Close.
To record the entry to move the credit to the Barter account
- From the Company menu, select Make General Journal Entries.
- On the first line, credit Accounts Payable with the amount to be transferred.
- In the Name column, enter the vendor from whom the credit is coming.
- On the second line, debit the Barter account with the same amount.
- Click Save & Close.
To record the entry to transfer the credit to the customer
- From the Company menu, select Make General Journal Entries.
- On the first line, debit Accounts Receivable with the amount to be transferred.
- In the Name column, select the customer who will receive the credit.
- On the second line, credit the Barter account.
- 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.
