Reconcile issue - off by vendor credit

@lisa-2i-t-com 

What do you mean by you're "off by that credit amount"?  Is the credit amount showing on your reconciliation screen?  As a payment?  A vendor credit simply reduces the amount due on a bill and you pay the net (bill amount less credit) so the only entry that hits your bank account is the bill payment for the net amount and that should match the withdrawal amount on your bank statement.  What category or item is on the vendor credit?   

Getting the balance to zero out during reconciliation confirms that the entries in QuickBooks Online correspond precisely with the transactions occurring in your actual bank account. Allow me to guide you through this important process, @lisa-2i-t-com.

I also read from your previous post that you linked a credit to a bill. Can you clarify if the actual payment was processed and cleared in your bank in full amount before the credit was applied?

If that's true, this is why the numbers are not aligning during your reconciliation process. Your bank statement will reflect the full payment, not accounting for the credit that was applied afterward.

In this case, you'll need to remove the credit from the bill. Then, record the payment in full amount. This is to make sure that you can reconcile your bank without any discrepancies. Let me show you how:

1. Open the bill and click the 1 payment made link under the Paid status.
2. Click the date of the transaction under Date to open the bill payment.
3. Scroll down to the Credits section and uncheck the vendor credit.
4. Edit the amount in the Payment field to match your bank statement.
5. Click Save and close.

Now, the credit will remain in the vendor's profile and can be used for future transactions. Just make sure to apply it first before processing the payment to make sure the record in QuickBooks will match your bank statement.

If the credit was applied before the actual payment was sent, a different transaction with the same amount prevents the difference from being zeroed out. To locate it, you can follow the steps outlined starting from the Step 3 section of this article: Fix issues at the end of a reconciliation in QuickBooks Online.

However, I would recommend reaching out to your accountant for additional advice before making the changes. This is to make sure that everything is done correctly since this will affect your financial record.

Finally, I'd like to share these articles for additional guidance on your reconciliation after successfully downloading the bank statements:

• Undo or remove transactions from reconciliations in QuickBooks Online
• View, print, or export a reconciliation report in QuickBooks Online

Always remember that we are here and eager to assist you. Whether it's a follow-up or new questions while managing vendor and bank transactions in QuickBooks Online, we're just a post away and ready to help.

Yes, the payment was posted & cleared in full amount before the credit was applied. I would uncheck the vendor credit to apply to other bills, however, there are no other bills coded to that particular project #. That is why I went back and attached the credit to the previous bill (since it was the same project #) so that I can adjust the $$ for that project.

Can I still take this approach and have the numbers align during the reconciliation?

Thanks!

Yes, you can proceed with the reconciliation following the approach recommended by my colleague above, lisa.
 

Since the payment was posted and cleared in full before you applied the vendor credit, you'll need to remove the credit from the associated bill to ensure that your bank records align with those in QuickBooks. You can follow my colleague's recommendation above for guidance on how to proceed with this adjustment.  
 

Afterward, the credit will remain and it'll be stored in the vendor's profile and can be applied to future bills and or any vendor-related transactions.
 

Lastly, I’ve included several resource guides you can explore that will help you better manage your reconciliation processes:

• Fix issues at the end of a reconciliation in QuickBooks Online
• Undo or remove transactions from reconciliations in QuickBooks Online
• View, print, or export a reconciliation report in QuickBooks Online

Keep me updated in the comments section below if you have any further questions or need clarification regarding your reconciliation process. We are always here to help and support you with any concerns you may have.