Problem with Vendor Credit procedure

Thank you for providing us detailed information about the concern you’re having, @PeterPaulPgh.

I can help you link the deposit to the bill credit that you’ve created.  

When you're on the Pay bills window, make sure to check the filters that you set. You can set to view all the bills under the specific vendor. Check the screenshot below:

The first scenario that is outlined in the article that you're following is for refunds that you've received from your vendors for bills that are already paid. 

For other scenarios that suit your situation, see this record a vendor refund in QuickBooks Desktop article for your reference. 

I'm always here if you need further help with your vendors. I'm always here to help. Have a great rest of the day!

Thank you, MaryJoyD, for the speedy response!

On the Pay Bills screen, I clicked the Filter By dropdown and chose the vendor involved in the refund.  Still no transactions appear in the list.  I guess this makes sense, because when the Filter By dropdown shows "All vendors", there are no transactions.  I assume filtering for a specific vendor would give me a subset of the transactions for all vendors.  And a subset of nothing would yield nothing.

I think I have attached a file showing screenshots with "All vendors" in the Filter By dropdown and the vendor in the dropdown.  The file also contains a snippet from my P&L report showing the two transactions that need to be associated.

I must be doing something else wrong.  I have tried this a half dozen times and on different days, with the same result each time.

Many thanks for sticking with me on this : ).

Peter

Hi @PeterPaulPgh,

I appreciate your prompt reply. 

Since the bill transaction you created earlier isn't showing up so you can link a deposit to it, then I suggest you contact our Technical Support team for assistance. They can remotely access your computer with your permission, and investigate why you have this issue. They'll be the ones to provide you a resolution for this situation as well.

See this article for the steps: Contact QuickBooks Desktop support. 

In case you want to pay for your bills online and within QuickBooks Desktop (QBDT), open this article: Use Online Bill Pay in QuickBooks Desktop.

Let me know in the comments below if you have other questions with your vendors in QBDT, and I'll be around to help you out. 

I figured out what I was doing wrong.  Thought I'd write this in case anyone else makes the same rookie mistake.

In Step 1.4 of Scenario 1, it says to "select the appropriate Accounts Payable account".

I mistakenly used the Expense account that was associate with the original purchase.  (This deposit is related to the return of an item purchased.)  So, in Step 3 of Scenario 1, when I went into the Pay Bills screen, the deposit didn't appear.  When I changed the account on the deposit transactions to my Accounts Payable account, the deposit appeared on the Pay Bills screen, and all worked well from there.

Thanks again to MaryJoyD and Ryan_M for the time you spent on this question.

I am having a similar problem in that I have created the credit and it is linked to the bill, but the deposit remains in my AP account?

I'll make sure you're able to record a vendor refund in QuickBooks Desktop (QBDT), @Bookkeeper357.

There are different sets of scenarios in recording a vendor refund in QBDT. Based on your description of the issue above, it seems that you haven't linked your credit and deposit transactions. That's why there are still funds in your A/P account. With this, you'll need to link the two transactions to take the refund out of your A/P account. Here's how:

1. Go to the Vendors menu, select Pay Bills.
2. Check the Deposit that matches the Vendor check amount.
3. Select Set Credits and apply the Bill Credit you created earlier. Then, select Done.
4. Click Pay Selected Bills, then select Done. 

To know more about recording refunds you received from a vendor, you can refer to this article: Record a vendor refund in QuickBooks Desktop.

Once you're done, you can pull up the Transaction List by Vendor report. This way, you're able to make sure that your vendor refund is recorded accordingly. To do this, go to the Reports menu and select Vendor & Payables.

Also, QBDT offers a wide variety of ready-made vendor reports that tell you where your company stands, in terms of expenses and accounts payable. If you wish to know more about them, I encourage you to check out this article: Customize vendor reports.

Please keep me posted on how it goes in the comments below. If you have other concerns about vendor refunds and managing transactions in QBDT, I'll gladly help. Take care, and I wish you continued success, @Bookkeeper357.

The problem is there is nothing left to apply the deposit to.

the credit was applied to the bill, so now there is nothing to apply the deposit to.

Hello Bookkeeper357!

I'm joining here so I can further assist you in recording vendor refunds.

It could be that this vendor has other available credits and you applied the incorrect one to the bill. What I can suggest is you delete and recreate it.

We only need to delete the bill payment. Follow these steps:

1. Go to the Vendors menu, then Vendor Center.
2. Select the vendor's name. Find and double-click the bill payment to open it.
3. Tap Delete, then OK to confirm it.

Once done, follow the same steps to link the deposit to the Bill Credit:

1. From the Vendors menu, select Pay Bills.
2. Select the Deposit that matches the Vendor check amount.
3. Click Set Credits and apply the Bill Credit you created earlier, then select Done.
4. Tap Pay Selected Bills, then select Done.

Also, I included this link if you need to transfer the available credits from one vendor to another: Transfer and apply credit from one vendor to another in QuickBooks Desktop.

I'll be here if you have other vendor-related concerns. Wishing you all the best!