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Mercury1
Level 1

Clear a vendor invoice paid with a check using a credit of equal amount

I wrote a check to pay a vendor invoice using a credit of the same amount, creating a zero balance check. This cleared the invoice but how do I clear it in bank reconciliation? It stands out as an uncleared check. It's also two months old now, so a couple of reconciliations have been done since.

I use QuickBOoks Desktop Pro Plus 2019.

Solved
Best answer February 02, 2019

Best Answers
qbteachmt
Level 15

Clear a vendor invoice paid with a check using a credit of equal amount

You can even Delete the $0 check. The Credit stays linked to the bill; the Check is just part of the program leaving a provision for if there is also an Amount to pay against the bill.

 

Some people make a bank account to hold these Zero Checks and name it Clearing.

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5 Comments 5
IamjuViel
QuickBooks Team

Clear a vendor invoice paid with a check using a credit of equal amount

It’s great to see you here, @Mercury1.

 

I’m delighted to share some information on how reconciliation works in QuickBooks Desktop

 

When you use credits in paying your vendor, it will create a zero amount check. You can include this transaction in reconciling your bank register.

 

Most of the time, it will still remain on the recon window, since it won’t clear out in the bank. Since it is a ZERO amount check, even if you check that on the recon window, you’ll notice that the balance will not change, or will not be affected by that zero amount check.

 

For future references, you may check out these articles:

Feel free to click the Reply button if you have other questions about paying your vendors and reconciling your bank register in QuickBooks Desktop. I’m always here to help.

qbteachmt
Level 15

Clear a vendor invoice paid with a check using a credit of equal amount

You can even Delete the $0 check. The Credit stays linked to the bill; the Check is just part of the program leaving a provision for if there is also an Amount to pay against the bill.

 

Some people make a bank account to hold these Zero Checks and name it Clearing.

Mercury1
Level 1

Clear a vendor invoice paid with a check using a credit of equal amount

Hi, thanks for the response! I did try checking it to mark it as cleared, but it did change the balance in the recon window to that invoice original amount.

IamjuViel
QuickBooks Team

Clear a vendor invoice paid with a check using a credit of equal amount

Delighted to hear again from you, @Mercury1.


Let me share additional information on how the vendor credit impacts the reconciliation of your bank register.

 

If the reconciliation changed then the credit that was posted on the Bank may have been reconciled from previous period. However, it could also be that the Zero amount check was deleted from the bank register.

 

To fix this, let's recreate the Zero amount check and reconcile you bank register again. The purpose of the $0 amount check is to  link the check and the vendor invoice as payment. Just make sure to put the check under the Accounts Payable account so it will be added as credit on the Vendor. Then, the $0 amount Bill payment that was created will be manually reconcile.

 

This entire activity will not affect your bank's balance.

 

For more insights, kindly check this article: Fix Reconciliation Discrepancies.

 

Stay in touch with me and let me know how it works on your end. I 'm always here to help you in reconciling your bank register in QuickBooks Dekstop.

qbteachmt
Level 15

Clear a vendor invoice paid with a check using a credit of equal amount

You would never have this happen: "I did try checking it to mark it as cleared, but it did change the balance in the recon window to that invoice original amount."

 

Because it created a $0 Check. You explained it right here: "I wrote a check to pay a vendor invoice using a credit of the same amount, creating a zero balance check."

 

That means reconciled or not, it is not even changing the Bank Balance. Reconciliation is the Status that the entry has been reviewed and verified.

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