Learn how to apply vendor credits when you use QuickBooks Bill Pay.
Before you can apply vendor credits, you need to Enter vendor credits and refunds in QuickBooks Online. This will make sure your expense records are correct and your bank balance is correct.
Once you've recorded vendor credits, you can apply them where you pay bills in QuickBooks Online. Choose the credits you want to use, and your payment total updates automatically. The credits stay with your scheduled payment and show up in your vendor's payment notification, so you can pay on time without tracking credits separately.
How to apply vendor credits to a bill payment
Go to Expenses, then select Bills.
Select Pay bills.
Select the bill you want to pay.
Verify the Credit Applied amount.
To use only part of a credit, enter the amount you want to apply.
Select Schedule payment and review the credit details.
Select Save and close.
Note: A credit you apply to one bill is no longer available for the others.
After you apply a credit, your vendor's payment schedule and payment "on the way" email will include the credit amount and the credit date.
The credit stays attached to the payment, so it follows the payment from start to finish. Here's what to expect:
| Scheduled or pending approval | The credit is reserved for this payment. You can't apply it to another bill until the payment completes or is canceled. |
| The payment completes | The credit is applied as part of the same bill payment, not as a separate transaction. |
| The payment fails, is canceled, or is refunded | The credit isn't applied. It's available again for your next payment. |
| The credit cover the whole bill | QuickBooks Online creates a payment record for $0, marks the bill as paid, and doesn't move any money. |
| You leave Pay bills before scheduling | Your credit selections aren't saved. Select them again when you return. |
A vendor credit doesn't change how your books are kept up to date. Applying vendor credits to your open bills has the same accounting effect as applying it anywhere else in QuickBooks Online.
FAQ
Why did my payment amount change?
A credit reduces what you owe. When you apply one, Pay bills recalculates your payment amount to the net amount due.
Can I change a credit in Schedule payment?
No. Credits are read-only in Schedule payment. Go back to Pay bills, change the credits, and your updated amount carries forward.
Can I apply credits to recurring bills or autopay?
Not yet. You can only apply vendor credits to bills you pay through Pay bills.