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RobTW
Level 1

Posting a supplier bill to the same supplier in credit.

Hi, I have a supplier that I pay in advance, I then receive a bill from that supplier later in that month as I make use of their services. Once I generate the bill how do I process the bill as being paid without posting it against a banking account? 

Solved
Best answer March 17, 2021

Accepted Solutions
Rea_M
QuickBooks Team

Posting a supplier bill to the same supplier in credit.

You'll first have to enter your supplier credit in QuickBooks Online (QBO), @RobTW. Let me share further details about this.

 

When you pay your supplier in advance, you need to record a credit in QBO. Then, pay your bill using the said credit. This way, you're able to process the payment without posting it against a banking account. Let me guide you how.

 

You can start by creating a supplier credit. Here's how:

  1. Go to the + New button.
  2. Select Supplier credit.
  3. In the Supplier field, select the appropriate supplier name.
  4. Enter the Date, Amount, and Account (the account used here is the original expense account on the original bill).
  5. Select Save and close.

 

I've attached a screenshot below that shows the last three steps.

80.PNG

 

After that, pay the bill using the supplier credit. Here's how:

  1. Go to the + New button
  2. Select Expense or Cheque.
  3. In the Payee drop-down, select the supplier name.
  4. Leave the Ref/Cheque no, Date, Amount, and Memo fields blank.
  5. In the Add to Expense or Add to Cheque section, select Add for the outstanding bill and supplier credit.
  6. Select Save and close or Save and new.

 

I've attached a screenshot below that shows the last four steps.

81.PNG

 

To know more about managing supplier credits, you can refer to this article: How do I handle supplier credits and refunds?.

 

Once done, I'd recommend pulling up the Bills and Applied Payments report. This is to make sure the credit is applied to your bill accordingly and keep your account update. Just go to the What you owe section from the Reports menu's Standard tab.

 

Also, I'm adding this article to further guide you in entering the credit depending on how you record your purchases in QBO: Enter a credit from a supplier. It includes topics about creating bills you plan to pay later and entering expenses or cheques.

 

Let me know if you have other concerns about managing supplier transactions in QBO. I'm just around to help. Take care always.

View solution in original post

1 REPLY 1
Rea_M
QuickBooks Team

Posting a supplier bill to the same supplier in credit.

You'll first have to enter your supplier credit in QuickBooks Online (QBO), @RobTW. Let me share further details about this.

 

When you pay your supplier in advance, you need to record a credit in QBO. Then, pay your bill using the said credit. This way, you're able to process the payment without posting it against a banking account. Let me guide you how.

 

You can start by creating a supplier credit. Here's how:

  1. Go to the + New button.
  2. Select Supplier credit.
  3. In the Supplier field, select the appropriate supplier name.
  4. Enter the Date, Amount, and Account (the account used here is the original expense account on the original bill).
  5. Select Save and close.

 

I've attached a screenshot below that shows the last three steps.

80.PNG

 

After that, pay the bill using the supplier credit. Here's how:

  1. Go to the + New button
  2. Select Expense or Cheque.
  3. In the Payee drop-down, select the supplier name.
  4. Leave the Ref/Cheque no, Date, Amount, and Memo fields blank.
  5. In the Add to Expense or Add to Cheque section, select Add for the outstanding bill and supplier credit.
  6. Select Save and close or Save and new.

 

I've attached a screenshot below that shows the last four steps.

81.PNG

 

To know more about managing supplier credits, you can refer to this article: How do I handle supplier credits and refunds?.

 

Once done, I'd recommend pulling up the Bills and Applied Payments report. This is to make sure the credit is applied to your bill accordingly and keep your account update. Just go to the What you owe section from the Reports menu's Standard tab.

 

Also, I'm adding this article to further guide you in entering the credit depending on how you record your purchases in QBO: Enter a credit from a supplier. It includes topics about creating bills you plan to pay later and entering expenses or cheques.

 

Let me know if you have other concerns about managing supplier transactions in QBO. I'm just around to help. Take care always.

View solution in original post