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We have one supplier that asks for payment up front for an order. We pay but when we receive the invoice it is for a different amount. How do I deal with the difference?

 
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Re: We have one supplier that asks for payment up front for an order. We pay but when we receive the invoice it is for a different amount. How do I deal with the difference?

When you make the payment, as the expense use accounts payable, that sets a credit with the supplier

 

then enter the bill, and in pay bills apply the credit to the bill, and pay the balance if any

QuickBooks Team

Re: We have one supplier that asks for payment up front for an order. We pay but when we receive ...

Hey info428,

 

Is the invoice received higher or lower than the amount paid? 

 

If it is lower then is the over-payment credited to you or refunded from the supplier? 

 

Thanks :)

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Re: We have one supplier that asks for payment up front for an order. We pay but when we receive ...

Thanks for responding. We've got a number of payments against invoices; some are higher and some are lower. We now have an account so invoices are created and payments made accordingly. Previously, an invoice was created so we could pay before delivery was made. However, due to the nature of the business, the quantity of goods received can be different.

QuickBooks Team

Re: We have one supplier that asks for payment up front for an order. We pay but when we receive ...

Hello there, @info428

 

I'll share the two options on how you can deal with the difference when paying your supplier.

 

For those amounts that are lower than the amount you paid, you can create supplier credits and apply them to the bills. By doing so, it'll ensure the credits hit the expense accounts you use for your suppliers. 

 

To enter a supplier credit: 

  1. Go to the Create (Plus) icon at the upper right.
  2. Select Supplier Credit.
  3. Choose your supplier in the Supplier drop-down menu. 
  4. Enter the Category details or Item details depending on how you record purchases with this supplier. 
  5. Click Save and close.

 

To link the credit toward any vendor transaction: 

  1. Go to the Create (Plus) icon at the upper right.
  2. Select Pay BillsExpense, or Cheque.
  3. Leave the Ref/Cheque no, Date, Amount and Memo fields blank.
  4. In the Add to Expense or Add to Cheque section, choose Add for the outstanding bill and supplier credit.
  5. Click Save and close.

Check out the Scenario 2 section for detailed steps above by going through this article: How Do I handle Supplier Credits and Refunds?

 

For those amounts that are higher than the amount you paid, you can create another bill, cheque, or an expense for the difference. This is to make sure you accurately report your accounts payable and the supplier balances are correct. To learn more about this process, see this article: What is the Difference Between Bills, Cheques, and Expenses?

 

You can go to the Expenses menu to help you manage your money-out transactions. To learn more about this page, visit this article: Expenses Page

 

I'll be right here to help if you need further assistance. Have a great day. 

Established Community Backer ***

Re: We have one supplier that asks for payment up front for an order. We pay but when we receive ...


@info428 wrote:

Thanks for responding. We've got a number of payments against invoices; some are higher and some are lower. We now have an account so invoices are created and payments made accordingly. Previously, an invoice was created so we could pay before delivery was made. However, due to the nature of the business, the quantity of goods received can be different.


If you set the vendor credit as I explained, then you do not enter the bill until you receive it.

 

however if you have entered the bill, and the one you receive is different, edit the bill you entered and then apply the credit.

 

If the bill is closed with the down payment, and it is different when you receive it, bring it up and edit it, save and click though the warning about payments being applied.  If you still owe money it will show in pay bills