Understandably, this process might seem a bit intricate, so I'll break down the steps for you clearly and straightforwardly, @JamesWoodcock.
When we talk about linking a bill and a credit note with a cheque transaction, we're essentially aiming to establish a connection between these financial elements. This connection ensures that your accounting records accurately reflect the payment you're making while accounting for any adjustments due to credit notes.
Once the bill and credit note are generated, the next step involves using the bill payment process to apply these as payment. This can be accomplished by issuing a cheque.
Here's how:
- Select + New and choose Cheque.
- From the Payee dropdown, select the supplier you paid. This opens a window with all of their outstanding bills.
- Select Add to add an open bill to the cheque. Note: If you don't see this, select the small arrow next to the amount. If you have credit with the supplier, you can also add it from the Credits section.
- From the Bank/Credit account dropdown, choose the account you made the cheque payment from.
- In the Amount field, enter the cheque amount.
- In the Outstanding Transactions section, choose the bills the cheque payment went to.
- Once done, click Save and close.
For additional information, feel free to refer to this article: Track bills and record the payments.
I'm also sharing this link to help you know how and when to give a credit note or delayed credit to customers: Create and apply credit notes or delayed credits in QuickBooks Online.
If you encounter any questions or hurdles along the way, don't hesitate to reach out for further assistance. I'll be around to help you.
