Desktop - I have a vendor credit. I applied some of the credit to a new bill, but the original amount of the credit still remains available. How do I fix this?

Hello, @nancy40. Your vendor credit and bill have desynced, making the credit appear unused. I recommend manually toggling the transaction type to refresh it in QuickBooks Desktop.

To begin, here's how:
 

1. Go to the Supplier Centre and select the supplier in question.
2. Locate the Supplier Credit in the transaction list and double-click to open it.
3. At the top of the window, change the radio button from Credit to Bill.
4. Click Save. When the system warns you about changing the transaction type, click Yes.
5. Immediately change the radio button back to Credit and click Save & Close.
6. This often unsticks the calculation and updates the remaining balance.

If the credit still shows the full amount, it likely wasn't fully linked to the bill payment transaction. In this situation, finalize the Link in Pay Bills. Here's how:
 

1. Go to the Suppliers menu and select Pay Bills.
2. Select the Bill you want to apply the credit toward.
3. Click the Set Credits button at the bottom of the screen.
4. In the Credits tab, ensure the credit is checked. If it only partially covers the bill, ensure the Amount to Use column reflects only the portion you want to apply.
5. Click Done, then click Pay Selected Bills to record the link.

For more details, feel free to check this page: Pay bills in QuickBooks Desktop.

You can click the Reply button if you have other questions about the program. 

Hi Kurt,

Thank you for your reply.

I did the first option you gave me and it worked at correcting the credit balance. However, after I changed the credit to bill and then back to credit, a prior bill that I paid in December (without using the credit) now shows as outstanding? This payment cleared the bank and the bank account has been reconciled. How do I fix this?

Many thanks. 

Nancy

Thank you for replying and letting us know that the steps provided earlier were successful. It’s possible that the payment linked to the bill became unlinked during the refresh process.

Before that, I suggest checking the previously reconciled bill if there is any discrepancy by going to the Report Center.
 

Here's how:
 

1. Go to Reports, then select Report center.
2. Search for Previous Reconciliation Discrepancy Report. 
3. Select the account where the shown bill is assigned to.

If a discrepancy is found, you’ll need to locate the bill in the Account Register and mark it as paid. Once done, if the payment already appears in the register, you can change its status to Check and mark it as Reconciled to ensure the balance is correct and reflects accurately.

If no discrepancy is showing in the report, there’s no need to take further action, as there is no error with the bill.

If you need further assistance with QuickBooks, don’t hesitate to reply. We’re here to help.

My issue continues. There was no discrepancy report. The bill payment made in December cleared the bank and was reconciled. The bill does not show up on the A/P Aging Summary or Detail Report. When I open the payment of this bill everything is correct and it shows as cleared. The bank account register shows the payment with a check mark.

When I opened a bill payment made last week for the same vendor, under Bills Paid In This Transaction, the bill I recently paid shows a check mark, but the bill I paid in December shows as outstanding...but it's not outstanding. Can anyone tell me how I can clear this paid bill from showing up as unpaid in Pay Bills? 

Thank you.

Hi there, Nancy40. There are instances where a new payment can accidentally "switch" its application to an older one, causing a reconciled December payment to appear as if it never hit the original invoice.

What we’ll want to do first is open the bill payment you created last week for that same vendor and carefully review it. Check the Bills Paid in This Transaction section and ensure that the applied amount is only for the recent bill, and that it isn’t pulling or reusing a payment that should belong to the December bill. If you see that the December bill is still marked as outstanding there, it’s a sign that the link between that bill and its original payment may have been interrupted.

If you’ve already confirmed that everything looks correct in that recent payment and the December bill is still showing as unpaid in Pay Bills, then the next step is to run a Verify and Rebuild. This process scans your company file for any data issues and attempts to repair them. Running Verify/Rebuild can help correct situations where a transaction is recorded properly in the bank register and on reports, but still appears incorrectly in the Pay Bills window.

Once Verify and Rebuild are complete, check the bill again in Pay Bills to see if it now shows as fully paid. If the issue persists, I suggest contacting our Live Support team so they can investigate further and provide tailored solutions.

Please revisit this thread and hit the Reply button below if you have any other QuickBooks-related questions.