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AZEmbroiderer
Level 3

Depositing a Credit from a Vendor

We have a vendor that requires payment at time of purchase and the total comes out of the bank account.  Those items went into inventory.  A month later the items had to be returned so I had to do a credit to take the items out of inventory.  The vendor deposited the money back into the bank.

 

Now I have a credit that I don't know how to apply as a deposit into our QB's checkbook so I can reconcile.

 

How would I do this?

Thanks

Solved
Best answer March 19, 2020

Best Answers
GlinetteC
Moderator

Depositing a Credit from a Vendor

It's nice to have you back here, AZEmbroiderer.

 

Let me give you additional details about your concern.

 

We're doing Accounts Payable to affect the Vendor's accounts and show the available credits in the Pay Bills page. When you reconcile, the deposit will show in your bank. I'll show you how:

  1. From the Banking menu, select Reconcile.
  2. In the Begin Reconcile window, select your Account the amount deposited to.
  3. Click Continue.
  4. Locate the deposit amount.
  5. Click Reconcile Now.

If in case you'll encounter issues reconciling your account, please refer to this article: Fix issues when you're reconciling in QuickBooks Desktop.

 

Feel free to comment below if you need anything else.

View solution in original post

8 Comments
ReymondO
QuickBooks Team

Depositing a Credit from a Vendor

Let me help you in depositing the credit to your bank, @AZEmbroiderer.

 

We can simply create a deposit to zero out your credit. Here's how:

 

  1. Go to Banking and select Make Deposit.
  2. Click the bank account you wanted to deposit to in the Deposit To drop-down.
  3. Select the vendor in RECEIVED FROM drop-down.
  4. Choose Accounts Payable in the FROM ACCOUNT drop-down.

 

You can also run the Vendor Balance Summary report to check your company's current balance with each vendor. Simply follow these steps below:

 

  1. Go to Reports menu and select Vendors Payables.
  2. Click Vendor Balance Summary.

 

If you need further help in recording your transactions in QuickBooks, click the reply button below so I can provide you assistance.

AZEmbroiderer
Level 3

Depositing a Credit from a Vendor

ReymondO

I think you didn't finish the steps.

After I've done the Vendor, Accounts Payable, Dollar Amount, Save/Close, how do I apply the credit?  Does this apply the credit toward the deposit?  Does this just 0 it out?  Is there another step that I need to do other than check to see what the balance is for that vendor?

 

Here's where it is confusing to me -

Normally, when I am paying an invoice, I can apply the credit toward that invoice.  So I don't understand the difference between applying the credit to basically nothing and zeroing out.

 

I'm sorry, but I am flying by the seat of my pants when I have something new happen with a vendor/customer and am better with audio learning rather than visual.  Thank you for being patient.

GlinetteC
Moderator

Depositing a Credit from a Vendor

Thanks for performing the steps provided above, AZEmbroiderer.

 

Let's do the missing steps by linking the deposit to the Bill Credit you've created. The process is quick and easy. Here's how:

  1. From the Vendors menu, select Pay Bills.
    vendor credit.PNG
  2. Check the deposit that matches the Vendor check amount.
    vend2.PNG
  3. Select Set Credits to apply the Bill Credit you've created.
  4. Select Done.
    vend3.PNG
  5. Select Pay Bills Selected, then click Done.
    vend4.PNG

You can check this article that will guide you in recording refunds from vendor: Record a vendor refund in QuickBooks Desktop.

 

That's it! Doing the steps will surely link your credit to the deposit.

 

If you have any other questions, please feel free to comment below.

AZEmbroiderer
Level 3

Depositing a Credit from a Vendor

Question -

Why am I doing Accounts Payable?  I'm receiving the credit from the vendor who did a direct deposit into our bank account.  If I do Payable, then this will just show a 0 and not be a deposit into the bank and I can't reconcile the deposit with my bank statement.

GlinetteC
Moderator

Depositing a Credit from a Vendor

It's nice to have you back here, AZEmbroiderer.

 

Let me give you additional details about your concern.

 

We're doing Accounts Payable to affect the Vendor's accounts and show the available credits in the Pay Bills page. When you reconcile, the deposit will show in your bank. I'll show you how:

  1. From the Banking menu, select Reconcile.
  2. In the Begin Reconcile window, select your Account the amount deposited to.
  3. Click Continue.
  4. Locate the deposit amount.
  5. Click Reconcile Now.

If in case you'll encounter issues reconciling your account, please refer to this article: Fix issues when you're reconciling in QuickBooks Desktop.

 

Feel free to comment below if you need anything else.

View solution in original post

AZEmbroiderer
Level 3

Depositing a Credit from a Vendor

Thank you!

Now I know what to do should this ever happen again.

Yvonne_SLC
Level 1

Depositing a Credit from a Vendor

Hello, when I get to the step about applying the credit to the deposit the deposit does not show in the Pay Bills screen. How do I get the deposit to show so that I can apply the credit to it?

Thanks

Yvonne_SLC
Level 1

Depositing a Credit from a Vendor

My apologies, I found it. Please disregard my question

Thanks for this post!

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