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Handle vendor credits and refunds in QuickBooks Online

SOLVEDby QuickBooksQuickBooks Online968Updated June 10, 2022

Enter a credit from a vendor

How you enter the credit depends on how you record your purchases. Choose the section below that applies to you. If you’re not sure, ask your accountant. Or, we can help you find a ProAdvisor.

Use these steps if you enter bills to track your expenses. This makes sure the credit hits the expense account you use for this vendor.

Create a vendor credit

  1. Select + New.
  2. Select Vendor credit or Receive vendor credit.
  3. In the Vendor dropdown, select your vendor.
  4. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting a credit for.
  5. Select Save and close.

Apply vendor credits to a bill

You can apply a vendor credit toward any open or future bill. When you’re ready to use the credit, here’s how to do it.

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

To track credits for your vendors, you should consider entering bills in QuickBooks. This way, you can track your account balance and credits using Accounts Payable. Otherwise, you can enter a note to remind yourself about this credit in the future.

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