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Ivy2019
Level 1

How to input credits that vendors issued?

How to input the credit that a vendor issued in Quickbooks? We created purchase order by inputting items cost, and later a vendor issued some credits to us because of the bad package of products and the unit cost for some products is wrong.

 

2 Comments 2
Rajanikanth
Level 6

How to input credits that vendors issued?

 

Hi, Eva2019

Purchase orders are not part of the double entry system so I assume you converted the PO to a Bill at the time of receiving the stocks.

QuickBooks Online users if the items are not returned by Creating a vendor credit you can not adjust the value so move to the bill and edit the amounts accordingly if within the tax periods/books are not closed ,if the items are returned then use Vendor Credit

QuickBooks Desktop  users use inventory adjustment account  > adjustment account - Contra account > enter other detail ,adjustment type Total Value only > then post a journal entry Debit  - A/P ,Credit - Contra account, select the relevant Vendor under the Name column.

 

Comment back for further clarifications.

 

Rajanikanth
Level 6

How to input credits that vendors issued?

Hi, Eva2019

Purchase orders are not part of the double entry system so I assume you converted the PO to a Bill at the time of receiving the stocks.

QuickBooks Online users if the items are not returned by creating a Vendor credit you can not adjust the value so move to the bill and edit the amounts accordingly if within the tax periods/books are not closed ,if the items are returned then use Vendor Credit

QuickBooks Desktop users use inventory adjustment account  > adjustment account - Contra account > enter the other details , adjustment type - Total Value only > then post a journal entry Debit  - A/P ,Credit - Contra account, select the relevant Vendor under the Name column.

 

Comment back for further clarifications.

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