Vendor Credits

Forum|Forum|4 years ago
January 6, 2022
2 replies
9 views

Hello.

I just found out we have several vendor credits from prior years. I know not to treat them as Accounts Receivable because we will not actually receive money from them but since we are "owed" a credit, I feel like they should be represented on a financial statement somewhere. When I add the vendor credit it doesn't go on the balance sheet like I thought it would.

Long question, short: how can we show these credits as "assets" since they definitely aren't "liabilities".

QuickBooks Desktop

Rustler

Level 15

intuit broke the accounting rules with vendor credits, you enter a vendor credit and what it does is lower the accounts payable balance on the balance sheet. A vendor credit is held in a/p, and a customer credit is held in a/r.

enter the vendor credit, that is all you can do in QB reasonably easy

AshLAuthor

Thanks so much. I now see that it is reducing the Accounts Payable. However, that was just one credit I entered. By the time I'm done entering all of them, it will reduce A/P to a negative. I don't believe I should have negative amounts on the Balance Sheet. Correct?

Is there a work around for this?

KimMcCPA

@AshL ,

Pull up each vendor credit, and check the category(account) that was credited when the transaction was created. There may have already been a decrease in an expense for these vendor credits.

To find them all quickly, run a Transaction List by Vendor for All dates, and filter by Transaction Type: Vendor Credit.

AshLAuthor

Thanks so much. Your response was similar to Rustler's (above). I do realize now that it's reducing other accounts/amounts. I have more credits to enter and while they will reduce their relative expense accounts, I will end up with a negative amount in my Accounts Payable.

Do you know if there's a work around for this?

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