Can I credit a portion of a previous expense? A bank statement I am reconciling lists 2 credits and I cannot get them to clear

I've got your back, @scott-camelrack-.

You can enter a deposit or a vendor credit depending on how you get the credit from the previous expense. Let me guide you through the process.

If you get cash from the previous expense, you can make a deposit and use the expense account your need to. Here's how:

1. Sign in to your QuickBooks Online (QBO) account.
2. Click the + New button, then select Bank deposit.
3. Select the appropriate bank account.
4. Go to the Add funds to this deposit section, then select the vendor from the Received From drop-down.
5. Choose the expense account in the Account drop-down.
6. Enter the amount, then click Save and close.

However, if you get a credit from the vendor, you can create a vendor credit and use the same expense account. Let me show you how.

1. Click the + New button, then select Vendor credit.
2. Select the vendor from the drop-down.
3. Go to the Category details section, then select the expense account from the Category drop-down.
4. Enter the amount and click Save and close.

Most importantly, I still recommend seeking help from your accountant. They may have another way of entering this based on your business recording practices.

After recording the credit, you can now proceed with reconciling your account in QuickBooks Online. This will help make sure your QuickBooks transactions match your bank statements.

If you need further assistance entering credits, feel free to comment below. I'm still open to your replies, @cott-camelrack-.

Thank you @Mark_R for the help and advise!

I created the Vendor Credit.

How does that credit become associated with bank account I am reconciling? 

I don't see that transaction in the account reconciliation.

Thanks for getting back to this, @scott-camelrack-. Let me clarify things for you.

As mentioned by my colleague above, you need to enter a deposit or a vendor credit to get the credit from the previous expense. This is one of the ways to enter the amount into your QuickBooks Online account. 

In addition to that, make sure to use the bank account you're about to reconcile when creating the deposit or vendor credit. This way, it will show on the reconciliation page. 

It would be best also to seek assistance from your accountant to ensure your recording is accurate.

I'm also adding these links you can utilize for future tasks in managing your banking transactions: 

• How do I view, print, or export a reconciliation report?
• Undo or remove transactions from reconciliations in QuickBooks Online

You can always update us if you have additional questions, as I want to ensure this is resolved for you. Just leave a comment below and I'll get back to you. Have a great day ahead. 

Thank you @Rubielyn_J for your reply!

Referring to the 3rd paragraph of your response -

In addition to that, make sure to use the bank account you're about to reconcile when creating the deposit or vendor credit. This way, it will show on the reconciliation page

I'm not sure how to "use the bank account" I'm about to reconcile. I know that sounds crazy but I don't see anywhere on that particular screen(Vendor Credit) how to select the bank account. 

Thank you for your help

Hi there, scott-camelrack-.

I appreciate you for coming back to the thread to ask for additional clarification about the details provided above. With this, I'll be providing further information about what my colleague is referring to so you can view all the entries when reconciling an account.

You'll be able to see different accounts and can select a specific category in the Category section. You'll have to click the Category details drop-down arrow to make sure you can view the option. I attached screenshots below for visual reference.

Lastly, you may refer to this article to view steps on how you can run a particular report that will reflect all payments made to vendors: Run a report with vendor totals.

Keep me posted below if you have additional questions about vendor credit. I’ll be glad to answer them for you. Have a great rest of the day.

Thank you @ChristieAnn   for the screen shots!

I see the drop down lists as you've illustrated and have been aware of those. 

From my understanding, which is very limited, those drop downs are categories. 

My issue is the account. I cannot see how to associate the vendor credit to the account I am reconciling. 

How do I get this credit into the bank account I am reconciling?

Scott

Thanks for your prompt reply, Scott.

I'd like to verify some additional details about applying the credit to your bank. I'll also want to give info about the process.

I've read your first post, and you mentioned that there are two credits listed on the bank you are trying to reconcile. To clarify, do you see these credits in the For review tab of the Banking page? Is the portion of credit from the previous expense recorded in QuickBooks?

In QuickBooks Online, we can match a bank transaction to multiple recorded entries. But, if it is the other way around (two bank transactions and a single expense), we're unable to do so. You will have to exclude them from the For review tab, and manually clear the expense in the bank register (Chart of Accounts).

In the meantime, let me add some overview about the vendor credit. A Vendor Credit is used to record returns or refunds from a vendor. If this is a refund and you want to associate this transaction to a bank, you can create a bank deposit. The step by step instructions are laid out in this article: Enter a refund from a vendor.

As for applying the credit toward any open or future bill, and link it to your bank, you will need to create a Pay Bill. Here's a link for the instructions: Handle vendor credits and refunds in QuickBooks Online.

If you're unsure about the process, I recommend consulting your accountant. They'll be able to give you the best accounting advice for your business and to ensure your reports are accurate. Don't have an accountant? Please feel free to visit our Intuit Find-A-ProAdvisor to find certified professionals near you.

Please don't hesitate to post a reply. Me and my colleagues are here to assist you. Take care and stay safe.

Thank you @RenjolynC for your response!

I will use the info you and the others have provided. 

It has been very helpful in understanding this process.

I will do as you suggest and have my accounted verify my inputs into these accounts.

Best!

Hi, scott-camelrack-.

Thank you for following the suggestion of previous agent that leads your issue resolved. 

Drop me a comment below if there's anything else you need. I'd be happy to offer additional help. Have a blissful day!