Workman's Comp Audit Credit on Account

You may enter a Vendor credit to apply it to the next bill, Raejb.

Let me guide you on how to create one:

1. From the Vendors menu, select Enter Bills.
2. Ensure you select the Credit radio button.
3. Then ensure the word Credit appears at the top of the form.
4. Select the name of the vendor who issued the credit from the Vendor drop-down.
5. Enter the date you received the credit from the Date calendar selector.
6. Then enter the amount of the credit into the Credit Amount field.
7. Then select the affected accounts or items on the Expenses tab at the bottom of the window.
8. Finally, click the Save & Close button to save the credit for later use.

To apply the credit to a bill:

1. Go to the Vendors menu in your QuickBooks Desktop (QBDT) and select Pay Bills.
2. From the Filter By field, select your preferred vendor.
3. Select the Bill you want to apply the credit to.
4. Click Set credits to apply the credit to the bill and click Pay Selected Bills.

I've also included this reference for a compilation of articles you can use while working with us: Expenses and Vendors for QuickBooks Desktop.

If there's anything else you need help with, you can post them here anytime.

You may enter a Vendor credit to apply it to the next bill, Raejb.

Let me guide you on how to create one:

1. From the Vendors menu, select Enter Bills.
2. Ensure you select the Credit radio button.
3. Then ensure the word Credit appears at the top of the form.
4. Select the name of the vendor who issued the credit from the Vendor drop-down.
5. Enter the date you received the credit from the Date calendar selector.
6. Then enter the amount of the credit into the Credit Amount field.
7. Then select the affected accounts or items on the Expenses tab at the bottom of the window.
8. Finally, click the Save & Close button to save the credit for later use.

To apply the credit to a bill:

1. Go to the Vendors menu in your QuickBooks Desktop (QBDT) and select Pay Bills.
2. From the Filter By field, select your preferred vendor.
3. Select the Bill you want to apply the credit to.
4. Click Set credits to apply the credit to the bill and click Pay Selected Bills.

I've also included this reference for a compilation of articles you can use while working with us: Expenses and Vendors for QuickBooks Desktop.

If there's anything else you need help with, you can post them here anytime.

Great!  I'm on the right track then.  I basically wondered if this large credit for 2019 Workman's Comp expenses should be posted to a different GL account labeled to reflect the year it was for.  Make sense?

Thank you everyone that posted a reply.

@Raejb 

You make a great point.  I suppose you could make it a sub-account of WC expense (called 2019 WC credit or something similar) if you really want the ability to see it on your P&L (you can always roll it up when viewing/printing) but it will be a credit entry on the work comp ledger so it should jump out when viewing that ledger.  Recording it as 'other income' doesn't seem correct since it is directly attributable to a reduction in your WC expense, although the net effect is the same.

Since the payment is done through the Payroll portion, I don't see where an invoice is created in the Vendor.  Would it be correct to enter an invoice in the Vendor, posting to the correct payroll liability account ? Or does it need to go through the payroll function?

Make sense?

Since the liabilities were already in Payroll, (they don't show up in the vendor) it didn't work the way we discussed.  This is how I was able to work it out....

1) Enter an credit adjustment through the "Adjust Payroll Liabilities" function.  

2) The credit is automatically applied the payments until it is used up.

Thank you for your ideas.

Rae

Hi there, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future.

Keep safe and have a great rest of the day.