unapplied vendor credits - previous years

Hi there, @brey.

Let me walk you through the steps to remove the unused vendor credit. You can delete it in the Vendor Center. Here's how:

1. Go to the Vendors menu.
2. Select Vendor Center.
3. Click the Transactions tab.
4. Choose the Bills option in the left panel of the window.
5. Look for the credit you want to delete.
6. Double-click it to expand the transactions.
7. Select the Delete button to remove the credit.

To ensure it won't affect your closed books, I recommend consulting an accountant.

You may use this article in case you need help customizing vendor reports to pull up a specific statement you're looking for: Customize vendor reports.

If you have any concerns, feel free to leave a message below. I'm only one call away to help you. Keep safe.

Wouldn't this affect the tax return expenses for the prior year?  I did a J/E debiting the A/P and crediting the expense acct. It puts the credit as a bill to be paid. I don't want to have to adjust past years. I'm wanting to have adjusted showing current year. How can I adj the credit in current year without it showing back up on Bills to be paid.

Hello, @McBeng.

I can provide solutions for adjusting credit without showing backup paid on bills for tax return expenses in QuickBooks Desktop.

It seems like the reason for this issue you are facing is that you might have mistakenly adjusted or written off the vendor credits on bills, and while creating a Journal Entry, you selected the wrong posting accounts. 

To record a transaction, follow these steps:

1. Select the Account field and choose Accounts Payable from the dropdown list. 

2. Enter the amount under the Credit column and move to the Name column. Select the vendor name from the dropdown list. 

3. In the next line, pick the Offset Account and enter the amount under the Debit column.

I suggest that you get in touch with your accountant for further guidance or explore other available options to resolve the issue.

I'll add an article that you may use in case you need to customize reports in QuickBooks Desktop: QuickBooks Desktop allows you to customize any report that you generate.

Feel free to leave a comment below if you have any questions about adjusting your credit for the current year. I'm always around here to help.