Payment as a credit from a Vendor

Hello, @WESNV. I hope you're doing well! I'm here to assist you in recording this credit in QuickBooks.

To record the credit from your vendor, you can utilize the Credit feature in the program. Let me show you how:

1. From the Vendors menu, select Enter Bills.
2. Click the Credit radio button to account for the return of goods.
3. Enter the Vendor name.
4. Select the Expenses tab and enter the Accounts on the original bill.
5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
6. Click Save and Close.

For more detailed information, you can refer to this article: Enter vendor credits and refunds in QuickBooks Desktop.

After successfully creating the Vendor credit, you can apply it to any open or future bill using the Pay bills feature.

In QuickBooks, Accounts Payable is the record of outstanding bills for your business. If you'd like further guidance on handling vendor-related transactions in QBDT, you can check out our Account Payable Workflow.

I believe you are giving an answer for someone that has QB online? I have the desktop version.

I completely forgot about the credit under bills! Now do I put it as an income account?

I don't know about the accounting.  It probably depends on what the discount is, exactly. If it's a kickback on what you purchased, perhaps use the same (expense?) account as the account used for the purchase. Or, if Inventory, then a use your COGS account.