VENDOR CREDIT ON ACCOUNT

Hello there, @Ctouchie.

Since you’ve already received the initial credit, you can directly record a bank deposit that’s affecting the Account’s Payable (AP) and link it to the credit. Here’s how to record a deposit for the vendor check:

1. Go to the Banking menu, then select Make Deposits.
2. If the Payments to Deposit window appears, select OK.
3. In the Make Deposits window, select the Received from dropdown and choose the vendor who sent you the refund.
4. In the From Account dropdown, select the appropriate Accounts Payable account.
5. Enter the actual amount of the vendor check in the Amount column.
6. Complete the remaining details in the Deposit and select Save & Close.

To link the deposit to the bill credit, follow these steps:

1. Go to the Vendors menu and select Pay Bills.
2. Check the Deposit that matches the Vendor check amount.
3. Click Set Credits and apply the Bill Credit you created earlier, then press Done.
4. Select Pay Selected Bills, then click Done.

For further details or if you still haven’t recorded a bill credit for the returned items, refer to this article: Record a vendor refund in QBDT.

We’ll be around to help you if you have any other concerns.

Hi there...I tried the entry you suggested.....after making the entries..I would have hoped the credit amount in the vendor account would clear out...but it is still sittling in the acting vendor side.....and now I can't seem to remove the entry so I can just enter it through my accounting link and let my accountant make an adjustment at year end.....unless you can advise how to have the credit gone from the vendor side......thanks

I understand how challenging this is for you, @Ctouchie. I also appreciate you for trying the steps Clark suggested. Let me help you get that vendor credit cleared.

Please note that the Bank deposit should have been posted to Accounts Payable (A/P). Applying the existing vendor credit to the bank deposit entry via Pay bills should have reduced the vendor credit balance automatically.

One possible reason we're looking at is that the bank deposit entry weren't able to be successfully linked to the existing vendor credit. To resolve this, let's begin by pulling up Open Balance report from the vendor profile since you've mentioned the credit still existed from the vendor side meaning the bank deposit and the existing credit should still exist as an open balance in your vendor account:

1. Open the Vendors menu.
2. Select Vendor Center.
3. Click the vendor’s name to open their profile.
4. In the vendor profile, select Open Balance to run the report.

• If the bank deposit entry and existing vendor credit displays on this report, it means it wasn't connected correctly to the existing vendor credit.

Then, we can proceed with the linking the bank deposit entry with thru the Pay Bills function. Here's how:

1. Open the Vendors menu and choose Pay Bills.
2. Use the Filter By option.
3. Place a checkmark next to the line that corresponds to the bank deposit (the payment/deposit amount).
4. Click Set Credits.
5. Check the box for the vendor credit you created.
6. Confirm the CREDITS USED amount matches the AMT. Due column.
7. Click Pay Selected Bills.
8. On the Transactions list on your vendor profile, there should be a Bill Pmt-Check transaction type with the amount of 0 which indicates that the deposit and existing credit has been offset correctly.

These steps should be able to fix the issue, and to review if any accidental vendor transactions were made and if these steps were indeed successful, they can pull up the Check Detail report. Navigate to the A report that shows how Bill Credits are applied section of this article: Customize supplier reports.

If you’ve followed these steps and the credits still remain, I recommend contacting your accountant for assistance.

Let us know if you have further questions, and we'll be right here to help you any time.