Vendor credit and Unapplied Cash Bill Payment Expense

Good day, @christyllew!

Let's go back to the last bill payment you've created and get this fixed in no time.

When applying a credit to a deposit, you'll need to enter the amount under the CREDIT APPLIED column, not PAYMENT. This is because we need to offset the available credits for that vendor, and not to enter a new payment.

You can check the screenshot below for your visual reference.

Feel free to read this article about vendor refund: How Do I Handle Supplier Credits and Refunds?

Please know that you can always get back to us by leaving a comment be, It'll be my pleasure to assist you.

I'm missing something.  There is not an open invoice to apply a credit to.

I'm missing something, surely.  I don't have an open invoice to apply a credit to, I have a deposited check refund and a vendor credit which I created.

Hello there, @christyllew.

Thanks for providing us an update about what's going on on your end. Allow me to join this conversation and give you additional insights with applying credits to deposits. 

To link your deposit with the vendor credit, you'll need to create a sample bill for the vendor with a zero amount to associate the transaction.

Let me guide you how:

1. Select the Plus Icon (+).
2. Click on Bill.
3. In the Choose a payee drop-down, select the vendor name.
4. Leave the Reference / Check #, Date, Amount and Memo fields blank.
5. Click on Make Payment.
6. Make sure that the Deposit and Vendor Credit box is checked.
7. Click on Apply Credit.
8. Select Save and close.

I've added some screenshot to visualize the steps:

To learn more about this process, please check out this article: Manage vendor credits.

That will do it, @christyllew. 

You've got me here if you need additional assistance. I'll make sure to get back to you as soon as I can. Have a good one!