Supplier credits

You’ll have to create a Bill Payment to link the Supplier Credit and the Bill, Deano2.

Please follow these steps on how to do it:

1. Go to your Supplier profile.
2. Click the Make Payment link of the Bill.
3. In the Outstanding Transactions field, select the bill.
4. Enter 0 as your PAYMENT. Since you’ll be paying the remaining amount in the future.
5. In the Credit section, select the credit associated to your Outstanding Transactions.
6. Enter 20 as your credit.
7. Click Save and close.

To reconcile the Bill (Supplier’s invoices) to your open bills, you’ll have to link them. You can follow the same steps above to do it.

I’ve added this article as your references in linking the Bill to an open invoices:

How do I Handle Supplier Credits And Refunds?.

The steps above will help you apply the credit to your Bill. If there's anything else that I can help you with, just post them here. I'm always right here to help you out.

Hi There,

Thank you for your reply but I am not understanding.

When I click bill payment (even though we are not paying a bill but rather the supplier has issued us with a credit note in respect of certain items on their supplier invoice)

The following screen appears

I have change the amount to zero (but no idea why) and obviously a transaction amount is required. 

Please advise what I am not understanding in your instructions below.

2). I have tried another way which was to select Supplier Credits and the following screen appears:

1 )  However - there are blank rows. How do I allocate it against the  individual line items in the original bill (or do I have to retype them)

2) Once the above is completed -

-  how do I apply it against their open invoice which we pay  at a future date and can I select the associated invoice.

Please note = At no time is $$ being exchanged and nor is the supplier reimbursing us for there error. We are attempting to apply the supplier credit note to an unpaid purchase invoice.

Incorrect supplier invoice

A supplier issued us with an invoice and has now advised it was done in error.

Q - How do I reverse this whole invoice and thereafter apply it to an open bill. (We do not wish to delete it from our system)

Thank you for your time

Thank you

Thanks for the screenshots, Deano2.

We’ll have to create a Supplier Credit to offset the payment from the incorrect invoice. Then, make sure in the PAYMENT column, enter the amount to be returned to your supplier. Once done, go back to your supplier’s profile, and click the Make blink. You’ll be routed to the Bill Payment page. From there, select the Supplier Credit, and enter 20 as your Bill PAYMENT amount. Make sure you enter 0 on the AMOUNT filed.

The Balance should now be $180.00.

To apply the remaining balance, you’ll have to select the Pay Bills button. Since you don’t have any Supplier Credit left.

Please let me know if you have other concerns. I'm just a post away to help you.

Thanks for your reply and screen shots. But still struggling. 😢  Why are we selecting pay bill when we not paying the bill.

Hello, @Deano2.

Using the Pay Bill feature ensures that the supplier credit is applied to the bill. Let me share additional information on how it works.

Here’s how:

1. Go to the Plus Icon (+).
2. Choose Pay Bills.
3. Mark the Bill where you want to apply for the supplier credit.
4. On the Credits Applied column, enter the correct credit.
5. On the Payment column, make sure that has 0.00 on it.
6. Click Save and Close.

From here, you’ll see an outstanding supplier balance of A$180 which is to be paid on a future date. When paying the balance, you can either write a cheque, record an expense transaction or use the Pay Bill feature.

You can refer to this short video clip about creating and applying for supplier credits:

To learn more about managing supplier-related transactions, you can read through these articles:

• Suppliers overview
• How do I run a report with supplier totals?
• How to view all transactions for a supplier

Keep me posted if you have other questions. I’m always here to help.

Thanks to BOTH of you.  :-)

Appreciate your efforts.

The business I do bookkeeping for had an outstanding amount to be paid to a supplier. The business closed, so the supplier cancelled any further payments.  I simply created a new credit under the supplier's name, added date, amount, reason for non payment, then added in the 'customer' section the same supplier at the end of the credit line in QBO. Now in aged payables report, the amount owing no longer appears.