How to enter a check received from a vendor

Hi anna-lee,

There are two things we can consider that will help you enter a check received from a vendor (supplier).

If you enter bills to track your expenses, you can create a supplier credit.

1. Click the Plus (+) icon.
2. Select Supplier Credit.
3. In the Supplier drop-down menu, select your supplier.
4. Depending on how you record purchases with this supplier, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting a credit for.
5. Click Save and close.

Then, apply supplier credits to a bill. Here how:

1. Click the Plus (+) icon.
2. Select Pay Bills.
3. Select a bill for your supplier from the list. You'll see the available credit with this supplier in the Credit Applied field.
4. Complete the rest of the fields like you normally do.

If you enter expenses or write checks, you'll want to consider entering bills in QuickBooks Online (QBO). This way you can track your account balance and credits using Accounts Payable. Otherwise, you can enter a note to remind yourself about this credit in the future.

Feel free to let me know if you need anything else. I'd be here to help.

Hi Maria,

We received a check for sales of scrap materials.  The payer is neither our supplier nor customer.  How do we record such transactions?

How does a Sales Receipt apply to a vendor?  Do I have to set the vendor up as a customer, as well? 

My scenario is:  We paid the wrong vendor (call it Vendor A).  They cashed our check and issued a check to return the payment.  I set the deposit to Vendor A/Accounts Payable.  This shows up on Vendor A's transaction list, but does not credit the correct expense.  If I set the deposit to Vendor A/Correct Expense, it doesn't show on Vendor A's transaction list. 

If I set the (original) incorrect payment to Accounts Payable, I cannot offset the credit and debit, so both show on the Accounts Payable Aging Detail.  Do I need a JE to make both the P&L and vendor account correct?  Thanks!

I've got your back on recording returned check in QuickBooks Online (QBO), @Kay_T.

When you create a sales receipt to record the returned check from a vendor, you don't have to set the vendor up as a customer. Thus, you'll just have to leave the Customer field blank when creating the sales receipt.

You can also create a vendor credit for the returned check. This way, the transaction will show in the Vendor transaction list and will be credited to the Expense account and debited to the A/P account.

In addition, I suggest seeking help with your account when creating JE for the incorrect payment to Accounts Payable. This way, they could guide you on which option to take based on your recording practice and business needs.

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

Please keep in touch if there's anything else I can do to help you succeed with QuickBooks. I've got your back. Have a great day!

This time it finally allowed me to offset the original check (issued in error) with the deposit, both assigned to Accounts Payable.  It appears to have resolved both issues without having to create a vendor credit or a sales receipt. 

Thanks for the reply.

How do I add an 8% charge to the account 

Hello, @mrhodes3-mgccc-e.

May I know the specific steps and account you would like to add an 8% charge? Any additional information you can share will help me provide the best solution to your concern.

Thanks in advance. I’m looking forward to working with you. Have a good one, @mrhodes3-mgccc-e.