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LizaM1
Level 2

Supplier Credits

Hi

I have 2 suppliers who have paid money to us for which we didn't raise an invoice (as they are a supplier rather than a customer)  What is the best way for me to write off these amounts?

Thanks

8 REPLIES 8
Ashleigh1
QuickBooks Team

Supplier Credits

Hello LizaM1, 

 

Welcome to the Community page, 

 

So are you refunding the money back to the suppliers in real life or not? 

LizaM1
Level 2

Supplier Credits

No, we aren't refunding as it was correctly paid to us.

GeorgiaC
QuickBooks Team

Supplier Credits

Hi LizaM1, if the money is income relating to a sale we'd recommend creating the suppliers as customers and raising a sales receipt against each. If the money is relating to a refund of goods/services provided by the supplier to be credited against a future bill you can record this using a supplier credit transaction. 

LizaM1
Level 2

Supplier Credits

Great, thanks.

Think I will do it as supplier credit transaction - do you perhaps have a step by step guide?

Thanks

 

 

MichelleBh
Moderator

Supplier Credits

Yes, I can give you the step-by-step instructions with screenshots, @Liza. This way, I can guide you accordingly.  

 

I'll make sure that you can record the credit without a moment's delay. To start, heed the steps below: 

 

  1. Go to the +New menu and choose Supplier credit
  2. Select the supplier name in the drop-down arrow. 
  3. Pick the appropriate Category details or Item details in the box. That will depend on how you record purchases with this supplier.
  4. Enter the Amount and other necessary fields. 
  5. Click Save and close

 

When you’re ready to use the credit, here’s how to do it: 

 

  1. Select the Expenses and choose the appropriate supplier name.
  2. In the Transaction list, click the Make payment hyperlink. 
  3. Check the bill and credit transactions in the list.
  4. Enter the necessary details and click Save and close.  

 

You can also go to the +New and select Pay bills. For the other way to apply for the credit, see this link: Handle supplier credits and refunds in QuickBooks Online.

 

Check out these articles below on how to use the different supplier transactions and handle them suitably: 

 

 

Remember that you can always ask me about any topics or other processes within QuickBooks. I'm always ready to work with you again. Keep safe, Liza. 

LizaM1
Level 2

Supplier Credits

I'm so sorry but I don't have the option to use Make Payment - I am using QB Online?

ShiellaGraceA
QuickBooks Team

Supplier Credits

Thanks for responding, @LizaM1.

 

I'll share the steps on how you can view the Make payment option. To confirm, do you have an open bill? If so, you'll have to look for the bill so you can apply the credit. It's the bill transaction that has the Make payment option. 

 

Here's how:

  1. Go to the Expenses menu on the left. 
  2. Choose the Expenses tab.
  3. From the Expense Transactions page look for the open bill.
  4. Under the Action column, click the Make payment link. This will open the Bill Payment window.
  5. Mark the bill and supplier credit transactions.
  6. Click Save and close. See the images below.

 

For details about these steps, check out this guide: Handle supplier credits and refunds in QuickBooks Online.

 

Feel free to also browse this link in case you need help managing supplier transactions: Enter expenses, pay bills and manage stock.

 

Please don't hesitate to reply if you have follow-up questions or concerns with bills or credits. I'll be around for you. Take care and have a great day ahead.

 

 

 

 

LizaM1
Level 2

Supplier Credits

Hi Grace

Thanks for your response, I'm not sure that this is going to resolve the issue.  I wonder if I didn't perhaps give enough information to start with, please could I re-explain the situation and you can advise...

We have 2 Suppliers.

1.  We received a bank deposit from this supplier which was added into Quickbooks.  I don't have any paperwork for this bank deposit.  If I add a supplier credit, will that not then make the amount doubled?

2.  Our other supplier we received funding from, over many years, and these were not allocated to the correct accounts.  This funds have all been used now and I just need to write them off, so they no longer show as a balance on the supplier account?

I hope this further explains the issue and I look forward to hearing from you.

Many Thanks

 

 

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