Sometimes a supplier may give you credit with them as a promotion or a thank you. Here's how to record the credit and apply it toward any open or future bill with them.
Step 1: Enter a supplier credit
This makes sure the credit hits the expense account you use for this supplier.
- Select + New.
- Select Supplier credit.
- In the Supplier ▼ dropdown, select your supplier.
- Depending on how you record purchases with this supplier, enter the Category details or Item details.
- Note: This is usually the category, product, or service you’re getting credit for.
- Select Save and close.
Step 2: Deposit the money you got from the supplier
- Select + New.
- Select Bank deposit.
- In the Account dropdown menu, select the account where you got the refund.
- In the Add funds to this deposit section, fill out the following fields:
- Received from: Select which supplier gave you a refund.
- Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the supplier credit. This may seem a little strange, but it’s the best way to do this.
- Payment method: Enter the method your supplier used to refund you.
- Amount: Enter the amount of your refund.
- Select Save and close.
Step 3: Use Pay Bills to connect the bank deposit to the supplier credit
Keep your supplier expenses accurate, even if you aren’t paying a bill.
- Select + New.
- Select Pay bills.
- Select the bank deposit you just created. You’ll see the amount of the supplier credit in the Credit Applied field. The Total payment should be EUR €0.00.
- Select Save and close.