Managing supplier transactions: credits, returns, bills

Hello Vanaheim, 

Welcome to the Community. I'll be happy to share more info so you can continue to navigate the program with ease. 

The program is designed to help you manage your suppliers. For recording suppler purchases, I encourage you to check out the following article that shows you how to: :Enter bills and record bill payments in QuickBooks Online. 

For categorizing transactions, I recommend referencing this article: Categorize online bank transactions in QuickBooks Online. 

For recording supplier credits, check the following article with more info on how: Enter supplier credits and refunds in QuickBooks Online. 

For functions that go beyond the steps in the articles above I recommend consulting with your accountant to learn more about how to accurate handle the supplier transactions. You're welcome to ask questions in the comments below. I'm here to steer you in the right direction. 

I believe you are overthinking this.

As per your requirements, you simply want to raise an Accounts Payable invoice/bill. During the process of raising a bill/invoice you will get a chance to allocate a category. Since it's at a bill stage, the bill will show up in your Accounts Payable Aging report which you can review and pay as/when needed.

Let me know if you need more info.

I do think this should be simple, and I began using the Bill and allocated categories just fine.  The problem came up when needing to reflect a return of product to the supplier, which the supplier provided to me on a credit account, for which I have not yet paid.  QuickBooks does not allow me to create a negative amount on a bill.  I could reflect this return as a 'Bill Payment", but then my category amounts are inaccurate.

For example, I get $100 of lumber from a supplier on credit, so I create a Bill allocating $100 to Job Materials.  I return $50 of the lumber to the supplier because the lumber is too twisted or damaged to use.  If I reflect this $50 as a Bill Payment, QuickBooks still thinks I spent $100 on Job Materials, when in reality I've only spent $50.

Thank you.  I did go through the articles you mentioned in detail.  I believe I am supposed to enter/categorize supplier credit transactions as "Bills".  But the problem comes up when I return goods/materials to the supplier and it is not possible in QuickBooks to enter a negative "Bill" amount.  One rep on the phone told me that I need to record these returns in QuickBooks as "Bill Payments", but it seems to me that by doing so my category expense totals in QuickBooks will not reflect my returns, ie. will show higher amounts in an expense category than in reality.

Thank you!

This resolves things very nicely.  Now it's time to play catch-up for the past few months, but feels great being on the right track!!