Hi, Received a credit from a DIY store into my linked account. Forgot to add my trade discount and this was credited after my purchase. Just wondering how to apply this?

enter a deposit in the linked account, use the same expense account as was used for the purchase

I'm here to ensure you're able to apply the purchase credit you've received in QuickBooks Online (QBO), @Ross Clode. This way, you can keep track of your vendor transactions accordingly.

In QBO, entering a vendor credit will depend on how you record your purchases. It's either of the following:

• You've created a bill that you plan to pay later.
• You've entered an expense or write a check.

If you enter bills to track your expenses, you'll have to record first a Vendor credit transaction. This will make sure the credit hits the expense account you use for this vendor. Here's how:

1. Go to the+ New button.
2. Select Vendor credit or Receive vendor credit.
3. In the Vendor drop-down, select your vendor.
4. Depending on how you record purchases with this vendor, enter the Category details or Item details. 
5. Select Save and close.

Once done, apply the vendor credit to a bill (open or future). Here's how:

1. Go to the + New button.
2. Select Pay bill.
3. Choose the bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied column.
4. Complete the rest of the fields to complete the process.
5. Click Save or Save and close.

On the other hand, if you've created an expense transaction or write a check, the right way to track your vendor credit is to also enter a bill in QBO. This way you can track your account balance and credits using Accounts Payable. In case you opt to do so, you can enter a note to remind yourself about it. You can check out this article's Add notes for vendors section for the detailed steps: Add and use notes.

Additionally, since you've mentioned that you've received the credit after the purchase, you may have already created a bill and recorded its payment. With this, you'll have to record the said credit through a bank deposit. Then, apply it to the expense account you use for the purchase. For the detailed steps, kindly refer to this article: Bank Deposits in QuickBooks Online.

After that, you can pull up either the Purchases by Vendor Detail or the Transaction List by Vendor report. This is to verify the credit was applied to your vendor account accordingly. Just visit the Expenses and vendors section in the Report menu's Standard tab.

Please let me know if you have other concerns. I'm just around to help. Take care always.

Hi!

Thanks for the comprehensive response. I’m only using the very basic version of quick books. Every material purchase is just being classed as Purchases Costs of Goods sold. It’s currently classing this small credit as Debtors Accounts Receivable. Just wondering if this is correct or if there would be a better category/classification to use? Thanks Ross 🙂