I have a credit note that was applied towards an invoice and the invoice was paid by cheque. However, the supplier applied the credit to my credit card instead and cashed the cheque. Given this, my accounts payable needs to be reduced and at the same time I need to post a credit card credit. What should I do?
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Welcome to the Community space, @Dude_50.
You can create a credit card credit to record the credit that your supplier applied. This can also reduce your Account Payable once you record this transaction. Let me guide you through the steps.
Also, you can run the Accounts Payable report. This will show the balances you owe to others. The debts consist of inventory, supplies, and services you buy to operate your business. You can check out this article for additional information: Run Reports.
You might also want to check out these articles to learn more about downloaded banking transactions and reconciling:
Should you have any follow-up questions about creating transactions or any QuickBooks related, you can always find me here. Take good care!
Thank you for getting back to us, @Dude_50.
Allow me to provide additional information on when your accounts payable (A/P) account decreases and increases.
Creating an expense to the A/P account will reduce its balance while depositing it will increase. Since your supplier applied the credit to your credit card, the best way to record it is by entering either Credit Card Credit or Vendor Credit. I'm adding this article to learn more about how to handle supplier credits: How do I handle supplier credits and refunds?
You might also want to manage suppliers' transactions and their profile, feel free to visit this link for some related articles: Manage suppliers.
Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.