Matching multiple invoices and vendor credits in banking from a single ACH transaction

RR_Will · ‎June 09, 2022

Hello,

We use QBO for our restaurant. We receive goods from several vendors multiple times a week, but frequently our vendors issue credit to us when items do not ship / arrive damaged / when we return beer kegs for keg deposits, etc. We pay these vendors with ACH transactions that group multiple invoices and credit memos on a weekly basis. For example, from a food vendor in a 7 day period we would have three invoices totalling say $4000, and two credit memos totalling -$200. The single ACH transaction a week later would come in as $3800 dollars.

When I attempt to match the ACH payment from the banking screen, I only see the invoices totalling $4000, and cannot include the credit memos to bring it down to $3800. I know that you can make a deposit for the credit memo and add that as a resolving transaction, but we never actually received any funds back to us, we simply weren't charged for the missing items from the vendor. They never gave us any money, they just deduct the amount from the bill before charging us, so why should it appear in the register as a deposit that never actually existed and won't be there on my bank statement?

I also have read on here that you can use the pay bills screen to apply vendor credits to specific bills, but after I do so, it marks the bills as paid, preventing them from being matched in the banking screen.

At this point it seems like it would be easier to just delete the vendor credits and manually add negative line items into each invoice, then match in the banking screen. Seeing as how we receive dozens of these transactions a month, I want to be sure that there's no streamlined way that QBO can do this for me before adding these additional steps to my bookkeeping work.

My apologies if I'm missing out on some fundamental accounting principle here or something, Quickbooks is not my strength.

Thanks

MaryLandT · ‎June 09, 2022

Hi there, RR_Will.

I appreciate you providing a detailed information on how transactions are made in QuickBooks. To help match the ACH payment from the Banking page, you'll first need to apply the credit to your invoices.

Here's how to apply the credit to bills.

Click + New.
Select Pay bills or Pay bill.
Select a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
Complete the rest of the fields like you normally do.
Click Save and close

Once done, go to the Banking page and match the ACH payment to the remaining invoice balance of the vendor. Check out this article as your guide: Categorize and match online bank transactions in QuickBooks Online.

Let me know if you have additional questions by commenting below. I'll be right here to help manage your vendor's transactions.

texastj · ‎March 02, 2023

What if the invoice the credit memo should be applied to has already been paid in a previous month? So now I have an ACH payment for invoices plus one credit memo that QB will not allow me to match the CM to. I can't post the payment as it would be incorrect.

Rasa-LilaM · ‎March 02, 2023

Thank you for joining this thread, texastj.

I want to ensure that your transactions are properly recorded in QuickBooks Online (QBO). I need more information about what you're experiencing so that I can provide the best answer.

Did you encounter any error codes or messages while matching the payment to the invoice? What happens when you match the invoices to the credit memo?

While waiting for your response, feel free to browse following links for further information on how to manage refunds, credits, and other customer-related tasks:

I appreciate any additional information you can share. I'm looking forward to working with you again.

djhoback · ‎August 20, 2024

"

3. Select a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field."

This does not appear.

JohncarlP · ‎August 20, 2024

I can help you view your Credit applied field in QuickBooks, djho.

Currently, in QBO, the Pay bills function specific for paying an open bill through a payment account. However, there are still several ways where we can apply the Vendor Credit to the open bill.

One way is to navigate through the Expenses page to locate the bill and manually mark it as paid. This way, you can make the Credit section display when you create a bill payment transaction. You can follow these steps:

Go to the Expenses section in the left navigation panel.
Select the Bills tab and open the specific Bill you have generated.
On the left upper side, click Mark as paid.
You can then find and view the applied Credit within the Credits section.

Alternatively, you can go to the Vendors section. Through this, you can manually locate and view the Vendor credit applied. Here's how:

In the left navigation panel, go to Vendors.
Locate the Bill you created and click on the Make payment button.
Within the Bill Payment, check the Credits section to see the applied Credit.

If you're unable to see the Credit field after completing these steps, you should check for your Vendor Credit transaction and verify that it is linked to the appropriate vendor. To guarantee the accuracy of your records, you can generate a Vendor Balance Detailed report. To do this:

Go to Reports.
In the Find report by name field, enter and click Vendor Balance Detail.
Filter the report period to include the date when the vendor credit transaction was created.
Locate the vendor credit transaction and ensure it's associated with the correct vendor.

To learn more about applying vendor credits and refunds in QuickBooks Online, please check out this article: Enter vendor credits and refunds in QuickBooks Online

Let us know if you need more help or need further information about managing your vendor transactions in QuickBooks. The Community is always here to answer them for you.

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Matching multiple invoices and vendor credits in banking from a single ACH transaction