Apply Vendor Credits QB Desktop Error - "You can't set discounts or credits to pay bills through QuickBooks Bill Pay Service"

Greetings, SLT80.

I'm here to share information about the error you're having when applying vendor credits in QuickBooks Desktop (QBDT).

The reason why you're getting these error messages is that, currently, Bill Pay doesn't have the option for partial payment. But as a workaround, you can create separate bills of lesser amounts, or edit the total bill amount and select Save and Schedule Payment.

For the steps on how to do it, you can refer to this article for more information: Pay bills online from QuickBooks Desktop. This also includes details about managing the Bill Pay feature in QBDT.

In case you need it, I'll also add this article that tackles removing/unapplying vendor credit in QBDT: Remove or unapply a credit from an invoice or bill.

You can also visit our website for more tips and other resources you can use in the future: Self-help articles.

Please know that I'm only a few clicks away if you have additional questions about this or anything else. I'm always here to answer them. Keep safe.

The solution actually ended up being more mundane than that. When I was trying to do the full payment amount, I had the Method as Schedule Online Payment. That is what was generating the first error. When I changed it to Check, I was able to apply the credits.

This was not a problem in QB Pro desktop 2020  Why did it change in QB Pro 2023.

Hello there, Heidi1.

I'm here to answer your questions regarding using vendor credits. Then, provide an alternative method for recording partial payments. 

At this moment, Bill Pay doesn't support recording partial payments. Our development team is actively working on implementing this functionality into QuickBooks Desktop (QBDT), and we plan to have it ready later this year. 

As a workaround, you can create a separate bill of a lesser amount, or edit the total amount. I'm here to ensure the process is a breeze for you. 

To enter a new bill:

1. In your company file, head to the Vendors menu at the top bar and select Enter Bills.
2. Click the Vendor drop-down and choose the name of your supplier from the list.
3. Enter the correct date in the Date field.
4. Fill in the remaining fields.
5. In the Amount column, enter a lesser amount of the figure. 
6. Click Save and Schedule Payment.

You can go over this reference to learn how to handle the following activity: Pay bills online from QuickBooks Desktop. From there, you'll find answers to common questions about the feature and how the program handles the transactions. 

Furthermore, this article will guide you on how to track the money you owe to your vendors: Accounts Payable workflows in QuickBooks Desktop. It contains a list of topics on how each task is performed in your company file. 

Keep in touch if you have additional questions about recording your bill payments or concerns about QuickBooks. I'd be delighted to respond to them. 

Please note that work arounds are not very good.  The solution the this is check off the bill you are paying.  At the bottom of that page next to the date change the "method" then you are able to click on the discount & Credit information for the highlighted bill.

If you are in 2023 this will work every time.  Make sure your QB's 2023 is updated.

Thanks-KB

That worked, thank you!

Dear moderator,

If you're writing a check, just look toward the bottom and click check instead of online payment in the Pay Bills section! It would be helpful if you could include this in your response!!!

Thank you so much for this worked for me. 

This also worked for me as well!  

You’re always welcome, TLPS.

I’m glad to hear that your concern with applying vendor credits has been resolved with the steps provided by my colleague in this thread. Rest assured that every concern posted in this forum is addressed accordingly.

Please don’t hesitate to come back if you have any QuickBooks-related concerns. Have a good one!

It is now 2024 - and this still isn't fixed.  Why?  Credits are a natural and normal occurrence in business.  Paying a bill online vs writing a check should NOT be a problem.  

Can someone from QB's development team address why this simple item is taking so long to be released and provide an update as to WHEN it will be fixed?

Hi, @acctmgrdc. I understand the importance of paying bills online using QuickBooks Desktop (QBDT).

Currently, this feature is still not available in QBDT. As this functionality is essential to your business, I recommend sending a feedback to our engineering team. This way, they can consider adding this feature to the application in the upcoming updates.

To send one, you can follow these steps:

1. Select the Help option.
2. Choose the Send Feedback Online option.
3. Select Product Suggestion.
4. A pop-up window will appear where you can enter your feedback suggestion.
5. Click the Send Feedback button to submit your feedback.

You can visit this article about the recording of outstanding bills for your business: Accounts Payable workflows in QuickBooks Desktop.

Please don't hesitate to get back to this thread if you have other concerns about paying a bill online using QBDT. The Community space is always available for you.