How do I set a credit in QuickBooks when cutting an accounts payable check?

Thanks for reaching out to the QuickBooks community, @rupinderkaur,

I can share the steps to create a vendor credit in QuickBooks Desktop. The steps are simple. Here's how:

1. Go to the Vendors menu, then select Enter Bills.
2. Select the Credit radio button to account for the return of goods.
   
3. Enter the Vendor name.
4. Select the Items Tab.
5. Add the returned items with the same amounts as the refund check.
6. Press Save & Close.

For other tips and ways to refund vendors, see this link: Record a vendor refund in QuickBooks Desktop

If you need help with processing the credit, post here again. I'll be more than happy to guide you further. Have a nice day!

Checks can assist you in recording your bills without revealing the amount you owe in your reports.

By using the Pay bills feature, you can associate the check with the bill. It will reflect the payment as a standard check. This method is effective only if the check has been reconciled.

• Open the check you created and update the Expense account to Accounts Payable.

• Choose the vendor name from the Customer: Job drop-down.

• Select Save & Close.

Then pay the bill.

• Go to the Vendors menu and click on Pay Bills.

• Choose the bill connected to the check.

• Click on Set Credits, and then go to the Credits tab.

• Put a check on the credit and update the amount as needed.

• Select Done and pick Pay Selected Bills.

Regards

Rupinder Kaur