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:

• Resolve common issues when applying a payment towards an invoice.

• Correct customer payments that have been deposited or reconciled.

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.

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.

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.

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.